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Transpek Industry Ltd.

BSE: 506687 Sector: Industrials
NSE: TRANSPEK ISIN Code: INE687A01016
BSE 00:00 | 18 Mar 1515.05 -7.45
(-0.49%)
OPEN

1522.50

HIGH

1550.00

LOW

1500.00

NSE 05:30 | 01 Jan Transpek Industry Ltd
OPEN 1522.50
PREVIOUS CLOSE 1522.50
VOLUME 1732
52-Week high 1730.00
52-Week low 1170.00
P/E 18.57
Mkt Cap.(Rs cr) 847
Buy Price 1500.00
Buy Qty 5.00
Sell Price 1515.05
Sell Qty 12.00
OPEN 1522.50
CLOSE 1522.50
VOLUME 1732
52-Week high 1730.00
52-Week low 1170.00
P/E 18.57
Mkt Cap.(Rs cr) 847
Buy Price 1500.00
Buy Qty 5.00
Sell Price 1515.05
Sell Qty 12.00

Transpek Industry Ltd. (TRANSPEK) - Auditors Report

Company auditors report

To the Members of Transpek Industry Limited

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying standalone Ind AS Financial Statements of TranspekIndustry Limited (‘the Company') which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss (including other comprehensive income) theStatement of Cash Flows and the Statement of Changes in Equity for the year ended and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as “Standalone Ind AS Financial Statements”).

Management's Responsibility for the standalone 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under and the Orderissued under Section 143(11) of the Act.

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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31 March 2018 and its profit(financial performance) including other comprehensive income its cash flows and thechanges in equity for the year ended on that 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 section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theorder.

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(including other comprehensiveincome) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;

(d) in our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read withrelevant rule issued there under;

(e) on the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

(f) In our opinion with respect to the adequacy of the internal financial controlswith reference to financial statements of the Company and the operating effectiveness ofsuch controls refer to our separate report in “Annexure B”; and

(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 standalone Ind AS financial statements Refer Note 37(A) to the standaloneInd AS financial statements;

ii. 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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312018.

For C N K & Associates LLP Chartered Accountants FRN: 101961W/W-100036

Himanshu Kishnadwala Partner Membership Number: 037391 Vadodara 23rd May 2018

Annexure A to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2018.

On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the property plant and equipments;

(b) As informed to us the company has a phased programme of physical verification ofits fixed assets so as to cover all assets once in three years. In accordance with thisprogramme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the company and thenature of its assets;

(c) According to the Information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable properties areheld in the name of the Company;

(ii) (a) As per the information and explanations given to us the inventories held bythe company have been physically verified by the management. In our opinion having regardto the nature and location of stocks the frequency of the physical verification isreasonable;

(b) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventory and the discrepancies noticed onphysical verification of the same were not material in relation to the operations of theCompany and the same have been properly dealt with in the books of accounts;

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited Liability Partnershipor any other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Hence clause 3(a) 3(b) and 3(c) are not applicable for the year;

(iv) In our opinion and according to the information and explanations given to usprovisions of Sections 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and securities have been complied with;

(v) In our opinion and as explained to us the Company has complied with the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under for thedeposits accepted by the company;

(vi) We have broadly reviewed the cost records maintained by the Company as prescribedby the Central Government under sub section (1) of Section 148 of the Companies Act 2013and are of the opinion that prima facie the prescribed cost records have been made andmaintained by the company. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete;

(vii) (a) According to the information and explanations given to us and the recordsexamined by us the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employee's state insuranceincome-tax sales-tax Goods and Service tax (GST) service tax custom duty excise-dutyvalue added tax cess and other statutory dues and there are no undisputed statutory duesoutstanding as at 31st March 2018 for a period of more than six months from the datethey became payable. We are informed that the provisions relating to employee's stateinsurance are not applicable to the company;

(b) According to the information and explanations given to us and the records examinedby us there are no dues of income tax sales tax Goods and Service tax(GST) wealth-taxservice tax duty of customs duty of excise value added tax or cess that has not beendeposited on account of disputes except the following:

Name of the Statute Nature of dues Amount ( Rs. In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income tax(including interest thereon) 12.21 2002-2003 Commissioner of Income Tax (Appeals) Vadodara
Income Tax Act 1961 Income tax(including interest thereon) 16.83 2003-2004 Commissioner of Income Tax (Appeals) Vadodara
Income Tax Act 1961 Income tax(including interest thereon) 16.96 2013 -2014 Commissioner of Income Tax (Appeals) Vadodara
Central excise act1944 Excise duty(including penalty) 55.77 2002 to 2012 CESTAT Ahmedabad
Service tax Service tax(including penalty) 74.02 2009 to 2015 Commissioner (Appeals) Vadodara
Service tax Service tax(including penalty) 332.89 2008 to 2015 CESTAT Ahmedabad
Central excise act1944 Custom duty (including penalty) 25.64 2007 to 2014 CESTAT Mumbai
Total 534.32

Note: Amounts paid under protest and not charged to profit and loss statement havenot been included above.[Refer Note no. 37(A) of Notes forming part of the financialstatements]

(viii) Based on our audit procedure and according to the information and explanationgiven by the management we are of the opinion that the company has not defaulted inrepayment of dues to financial institutions or banks Government or dues to debentureholders;

(ix) According to the information and explanations given to us no moneys were raisedby way of initial public offer or further public offer (including debt instruments) andthe term loans were applied for the purpose for which the loan were obtained during theyear;

(x) During the course of our examination of the books of account and records of thecompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither came acrossany incidence of fraud on or by the company noticed or reported during the year nor wehave been informed of any such case by the management;

(xi) According to the information and explanation given 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) In our opinion and according to the information and explanation given to us theprovisions related to Nidhi Company are not applicable;

(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance with section 177 and 188 of the Companies Act2013 where applicable and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards;

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review;

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him and the provisions of section 192 of the Companies Act 2013 have been compliedwith;

(xvi) According to the information and explanation given to us the company is notrequired to be registered under section45-IA of the Reserve Bank of India Act 1934.

For C N K & Associates LLP Chartered Accountants FRN: 101961W/W-100036

Himanshu Kishnadwala Partner Membership Number: 037391 Vadodara 23rd May 2018

Annexure B to the Auditor's Report

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 TRANSPEKINDUSTRY LIMITED (“the Company”) as of 31st March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Act 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 whetherinternal financial controls with reference to financial statements 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 financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 withreference to financial statements.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations 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 Standalone Ind AS 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 internal financial controlswith reference to financial statements and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For C N K & Associates LLP Chartered Accountants FRN: 101961W/W-100036

Himanshu Kishnadwala Partner Membership Number: 037391 Vadodara 23rd May 2018