1. We have audited the attached Balance Sheet of TIL Limited (the
Company)as at 31st March, 2011, and the related Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto, which we have signed under reference to this report.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order,2004
(together the Order), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act, 1956
of India (the Act) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
applicable accounting standards referred to in sub-section (3C) of
Section 211 of the Act;
e) On the basis of written representations received from the directors
, as on 31st March, 2011, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2011
from being appointed as a director in terms of clause (g) of sub –
section (1) of Section 274 of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure To Auditors Report
Referred to in Paragraph 3 of the Auditors Report of even date to the
Members of TIL Limited on the Financial Statements for the year ended
31st March, 2011.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company are physically verified by the
management according to a phased programme designed to cover all the
items 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 programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) During the year, the Company has transferred a substantial part of
its fixed assets forming part of the undertaking pertaining to the
dealership business of caterpillar pursuant to a Scheme of Arrangement
as indcated in Note 13 on Schedule O to the accounts. On the basis of
our examination of the books and records of the Company, and according
to the explanations given to us, in our opinion, the transfer of the
said fixed assets has not affected the going concern status of the
Company.
2. (a) The inventory of the Company (other than stocks with third
parties) has been physically verified by the management during the
year. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 1975, as applicable, with
regard to deposits accepted from the public. According to the
information and explanations given to us, no order under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub-section (1) of Section 209 of
the Act, for any of the products of the Company.
9 (a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
regular in depositing during the year the undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues,
as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty and Cess as at 31st March, 2011 as applicable, which have not been
deposited on account of a dispute, are as follows :
Name of the Statute Nature of Dues Amount (Rs. in Forum where dispute
is pending
lacs) [net of
payments]
The Central Sales
Tax Act, 1956 Sales Tax dues
for the Period
1996-98 1.65 The Commercial Taxes
Tribunal ,
Ghaziabad
The Central Sales
Tax Act, 1956 Sales Tax dues for
the Period 2007-08 73.93 The Additional
Commissioner
(Appeals) Commercial
Taxes, Kolkata
The West Bengal
Value Added Tax
Act, Sales Tax dues for
the Period 2007-08 278.34 The Additional
Commissioner
(Appeals)
2003 Commercial Taxes,
Kolkata
The Uttar Pradesh
Trade Tax Act, 1948 Entry Tax dues for
the year 2004-05 6.48 The Commercial Taxes
Tribunal , Ghaziabad
The Uttar Pradesh
Trade Tax Act, 1948 Sales Tax dues for
the year 2007-08 2.58 The Additional
Commissioner
(Appeals), Ghaziabad,
Uttar Pradesh
The Income tax Act,
1961 Income tax dues for
the assessment year
2004-05 10.00 Commissioner of
Income-tax (Appeals)
The Income tax Act,
1961 Income tax dues for
the assessment year
2006-07 1.35 Commissioner of
Income-tax (Appeals)
The Income tax Act,
1961 Income tax dues for
the assessment year
2007-08 6.74 Commissioner of
Income-tax (Appeals)
The Income tax Act,
1961 Income tax dues for
the assessment year
2008-09 109.81 Commissioner of
Income-tax (Appeals)
The Central Excise
Act, 1944 Dispute regarding
Duty Exemption
Certificate 19.46 Commissioner of
Central Excise
(Appeals)
produced by Ministry
of Defence for the
year 2007-08
The Central Excise
Act, 1944 Dispute Regarding
eligibility of
exemption benefit 23.69 Commissioner of
Central Excise
(Appeals)
for the year 2010-11
Finance Act, 1944 Dispute regarding
applicability of
Service Tax on 69.28 Commissioner of
Central Excise
(Appeals)
payment of Royalty
and Technical Know
how fees for the
period 2005-08
Finance Act, 1994 Dispute regarding
service tax on
commission 23.56 Commissioner of
Central Excise
(Appeals)
received for the
year 2007-08
10. The Company has no accumulated losses as at 31st March, 2011, and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. Provisions of any special statute applicable to chit fund/ nidhi/
mutual benefit fund/ societies are not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. 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 others from banks or financial
institutions, are not prejudicial to the interest of the Company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company had neither any outstanding debenture at the beginning
of the year nor has it issued any debenture during the year and
accordingly, the question of creation of security or charges in this
respect does not arise.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
22. The other clauses, (iii)(b), (iii)(c), (iii)(d), (iii)(f),
(iii)(g) and (v)(b) of paragraph 4 of the Companies (Auditors Report)
Order 2003 as amended by the Companies (Auditors Report) (Amendment)
Order, 2004, are not applicable in the case of the Company for the
current year, since in our opinion there is no matter which arises to
be reported in the aforesaid order.
For Price Waterhouse
Firm Registration Number - 301112E
Chartered Accountants
P. Law
Place : Kolkata Partner
Date : 17th May, 2011 Membership Number – 51790
|