SENSEX NIFTY
Tata Communications | Auditor's Report > Telecommunications - Service > Auditor's Report from Tata Communications - BSE: 500483, NSE: TATACOMM
YOU ARE HERE > MONEYCONTROL > MARKETS > TELECOMMUNICATIONS - SERVICE > AUDITORS REPORT - Tata Communications

Tata Communications

BSE: 500483|NSE: TATACOMM|ISIN: INE151A01013|SECTOR: Telecommunications - Service
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Jul 22, 16:01
459.65
3.15 (0.69%)
VOLUME 16,904
LIVE
NSE
Jul 22, 16:01
460.65
5.5 (1.21%)
VOLUME 241,695
« Mar 14
Auditor's Report (Tata Communications) Year End : Mar '15
We have audited the accompanying standalone financial statements of
 Tata Communications Limited (the Company), which comprise the Balance
 Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash
 Flow Statement for the year then ended, and a summary of the
 significant accounting policies and other explanatory information.
 
 Management''s Responsibility for the Standalone 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 of these standalone financial statements that give a
 true and fair view of the financial position, financial performance and
 cash flows of the Company in accordance with the accounting principles
 generally accepted in India, including the Accounting Standards
 specified under Section 133 of the Act, read with Rule 7 of the
 Companies (Accounts) Rules, 2014. This responsibility also includes
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and
 for preventing and detecting frauds and other irregularities; selection
 and application of appropriate accounting policies; making judgments
 and estimates that are reasonable and prudent; and design,
 implementation and maintenance of adequate internal financial controls,
 that were operating effectively for ensuring the accuracy and
 completeness of the accounting records, relevant to the preparation and
 presentation of the financial statements that give a true and fair view
 and are free from material misstatements, whether due to fraud or
 error.
 
 Auditor''s Responsibility
 
 Our responsibility is to express an opinion on these standalone
 financial statements based on our audit.
 
 We have taken into account the provisions of the Act, the accounting
 and auditing standards and matters which are required to be included in
 the audit report under the provisions of the Act and the Rules made
 thereunder.
 
 We conducted our audit in accordance with the Standards on Auditing
 specified under Section 143(10) of the Act. Those Standards require
 that we comply with ethical requirements and plan and perform the audit
 to obtain reasonable assurance about whether the financial statements
 are free from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and the disclosures in the financial statements. The
 procedures selected depend on the auditor''s judgment, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers internal financial control relevant
 to the Company''s preparation of the financial statements that give a
 true and fair view in order to design audit procedures that are
 appropriate in the circumstances, but not for the purpose of expressing
 an opinion on whether the Company has in place an adequate internal
 financial controls system over financial reporting and the operating
 effectiveness of such controls. An audit also includes evaluating the
 appropriateness of the accounting policies used and the reasonableness
 of the accounting estimates made by the Company''s Directors, as well as
 evaluating the overall presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion on the standalone
 financial statements.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the aforesaid standalone financial statements
 give the information required by the Act in the manner so required and
 give a true and fair view in conformity with the accounting principles
 generally accepted in India, of the state of affairs of the Company as
 at March 31, 2015, and its profit and its cash flows for the year ended
 on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 2015 (the
 Order) issued by the Central Government in terms of Section 143(11) of
 the Act, we give in the Annexure a statement on the matters specified
 in paragraphs 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 explanations
 which to the best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
 books of account.
 
 (d) In our opinion, the aforesaid standalone financial statements
 comply with the Accounting Standards specified under Section 133 of the
 Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
 
 (e) On the basis of the written representations received from the
 directors as on March 31, 2015 taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31, 2015
 from being appointed as a director in terms of Section 164 (2) of the
 Act.
 
 (f) With respect to the other matters to be included in the Auditor''s
 Report in accordance with Rule 11 of the Companies (Audit and Auditors)
 Rules, 2014, in our opinion and 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
 financial position in its financial statements in accordance with
 generally accepted accounting practice - also refer Note 35 and
 36(a)(ii to v) to the financial statements;
 
 ii) The Company has made provision, as required under the applicable
 law or accounting standards, for material foreseeable losses, if any,
 on long-term contracts including derivative contracts;
 
 iii) There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 Company.
 
 ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
 
 (Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
 Requirements'' section of our report of even date)
 
 1.  In respect of the Company''s fixed assets:
 
 (a) The Company has maintained proper records showing full particulars,
 including quantitative details and situation of fixed assets.
 
 (b) The Company has a program of verification of fxed assets to cover
 all the items in a phased manner over a period of three years which, in
 our opinion, is reasonable having regard to the size of the Company and
 the nature of its assets.  Pursuant to the program, certain fixed
 assets were physically verified by the Management during the year.
 According to the information and explanations given to us, no material
 discrepancies were noticed on such verification.
 
 2.  In respect of the Company''s inventories:
 
 (a) As explained to us, the inventories were physically verified during
 the year by the Management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of inventories
 followed by the Management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 (c) In our opinion and according to the information and explanations
 given to us, the Company has maintained proper records of its
 inventories and no material discrepancies were noticed on physical
 verification.
 
 3.  According to the information and explanations given to us, the
 Company has granted unsecured loans to companies, firms or other
 parties covered in the Register maintained under Section 189 of the
 Companies Act, 2013. In respect of such loans:
 
 a) The receipts of principal amounts and interest have been regular /
 as per stipulations.
 
 b) There is no overdue amount in excess of Rs. 1 lakh remaining
 outstanding as at the year-end.
 
 4.  In our opinion and according to the information and explanations
 given to us, having regard to the explanations that some of the items
 purchased are of special nature and suitable alternative sources are
 not readily available for obtaining comparable quotations, there is an
 adequate internal control system commensurate with the size of the
 Company and the nature of its business with regard to purchase of
 inventory and fixed assets and for the sale of goods and services.
 During the course of our audit, we have not observed any major weakness
 in such internal control system.
 
 5.  According to the information and explanations given to us, the
 Company has not accepted any deposits during the year and accordingly
 the question of complying with Section 73 and Section 76 of the
 Companies Act, 2013 does not arise. In respect of unclaimed deposits,
 the Company has complied with the provision of Sections 74 and 75 or
 any other relevant provisions of the Companies Act, 2013. According to
 the information and explanations given to us, no Order has been passed
 by the Company Law Board or the National Company Law Tribunal or the
 Reserve Bank of India or any Court or any other Tribunal on the
 Company.
 
 6.  We have broadly reviewed the cost records maintained by the Company
 pursuant to the Companies (Cost Records and Audit) Rules, 2014, as
 amended and prescribed by the Central Government under sub- section (1)
 of Section 148 of the Companies Act, 2013, and are of the opinion that,
 prima facie, the prescribed cost records have been made and maintained.
 We have, however, not made a detailed examination of the cost records
 with a view to determine whether they are accurate or complete.
 
 7.  According to the information and explanations given to us, in
 respect of statutory dues:
 
 (a) The Company has generally been regular in depositing undisputed
 statutory dues, including provident fund, employees'' state insurance,
 income tax, sales tax, wealth tax, service tax, customs duty, excise
 duty, value added tax, cess and other material statutory dues
 applicable to it with the appropriate authorities.
 
 (b) There were no undisputed amounts payable in respect of provident
 fund, employees'' state insurance, income tax, sales tax, wealth tax,
 service tax, customs duty, excise duty, value added tax, cess and other
 material statutory dues in arrears as at March 31, 2015 for a period of
 more than six months from the date they became payable.
 
 (c) Details of dues of income-tax, sales tax, wealth tax, service tax,
 customs duty, excise duty, value added tax and cess which have not been
 deposited as on March 31, 2015 on account of disputes are given below:
 
 Name of Statute       Nature of dues     Forum where dispute is pending
 
 Income Tax Act,1961    Income Tax        Appellate Authority - Tribunal
                                          Level
 
 Income Tax Act,1961    Income Tax - TDS  Appellate Authority - 
                                          Commissioner
                                         (Appeal) (TDS)
 
 Income Tax Act,1961    Income Tax - TDS  Appellate Authority - 
                                          Commissioner
                                         (Appeal) (TDS)
 
 Income Tax Act,1961    Income Tax        Appellate Authority - Deputy
                                          Commissioner of Income tax
 
 Central Sales 
 Tax/Sales              Sales Tax         West Bengal Commercial
                                          Tax Appellate
 Tax Laws                                 and Revision Board
 
 VAT Laws               VAT               Joint Commissioner of
                                          Commercial Taxes
 
 Name of Statute            Period to which the         Amount
                            amount relates              involved
                                                       (Rs. crores)
 
 Income Tax Act 1961        AY 2007-08 and                 306.78
                            2008-09
 
 Income Tax Act 1961        AY 2007-08 to                   15.56
                            2015-16
 
 Income Tax Act 1961        AY 2009-10 to                    1.33
                            2011-12
 
 Income Tax Act 1961        AY 1997-1998,                  304.09
                            2009-10 to 2010-11
 
 Central Sales Tax Sales    FY 2006-07, 2007-08,             1.27
 Tax Laws                   2011-12
 
 VAT Laws                   FY 2009-10                       0.18
 
 Out of the total disputed dues aggregating Rs. 629.21 crores as above, Rs.
 306.78 crores has been stayed for recovery by the respective
 authorities.
 
 (d) The Company has been regular in transferring amounts to the
 Investor Education and Protection Fund in accordance with the relevant
 provisions of the Companies Act, 1956 (1 of 1956) and Rules made
 thereunder within time.
 
 8.  The Company does not have accumulated losses at the end of the
 financial year and the Company has not incurred cash losses during the
 financial year covered by our audit and in the immediately preceding
 financial year.
 
 9.  In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in the repayment of dues to
 financial institutions, banks and debenture holders.
 
 10.  In our opinion and according to the information and explanations
 given to us, the terms and conditions of the guarantees given by the
 Company for loans taken by wholly owned subsidiaries from banks and
 financial institutions are not, prima facie, prejudicial to the
 interests of the Company.
 
 11.  In our opinion and according to the information and explanations
 given to us, the term loans have been applied by the Company during the
 year for the purposes for which they were obtained.
 
 12.  To the best of our knowledge and according to the information and
 explanations given to us, no fraud by the Company and no material fraud
 on the Company has been noticed or reported during the year.
 
                                         For S. B. BILLIMORIA & CO.
 
                                             Chartered Accountants 
 
                                  (Firm''s Registration No. 101496W)
 
                                                       R. A. BANGA
 
                                                           Partner
 
                                            (Membership No. 037915)
 Mumbai, July 28, 2015
Source : Dion Global Solutions Limited
Quick Links for tatacommunications
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.