1. We have audited the attached Balance Sheet of TIL Limited (the
Company) as at 31st March, 2012, the Statement of Profit and Loss
and the Cash Flow Statement of the Company for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Company''s Management our responsibility is to
express an opinion on these financial statements based on our audit
2. We conducted our audit in accordance with the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section H7(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said 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
(b) hour 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
(c) the Balance Sheet tie 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, they said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a tree and f& view in conformity with the accounting principles
generally accepted in India:
(Q in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31 st March, 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 st March,
2012 from being appointed as a director h terms of Section 274(1)(g) of
the Companies Act 1956.
(i) Having regard to the nature of the Company''s business/activities
/result, clauses (x), (xii), (xiii), (xiv), (xviii),
(xix) and (xx) of CARO are not applicable
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion provides for physical verification of all the
fixed assets at reasonable internals. According to the information and
explanation given to us, no material discrepancies were noticed on such
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
Cm) In respect of its inventory:
(a) As explained to us, the inventories excepting material lying with
third parties (which have substantially been confirmed) were physically
verified during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
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
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(v) 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 obtain Rung 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 purchases of
inventory and fixed assets and the sale of goods and seines. During the
course of our audit, we have not observed any major weakness in such
internal control system.
(vi) According to the information and explanations given tons, there
have been no contracts or arrangements referred to in Section 301 of
the Companies Act,1956 during the year to be entered in the register
maintained under that section. According they the question of
commenting on transactions made in pursuance of such contracts or
arrangements does not arise.
(vii) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
In respect of unclaimed deposits, the Company has complied with the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act 1956.
(viii) In our opinion, the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
(ix) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(x) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been regular in depositing undisputed dues,
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st March, 2012 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,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2012 on account of disputes we given below:
Name of the
Statute Forum where
dispute is Nature of Dues Amount
pending_(Rs in lacs) it relates
Tax Act, 1948 The Commercial
Taxes Entry Tax 6.48 2004-05
Act, 1956 The Commercial
Taxes Sales Tax 1.65 1996-97
Act, 1956 The Additional Sales Tax 880.20 2007-08
Act 2003 The Additional Sales Tax 616.38 2007-08
1961 Commissioner of
Income-tax Income tax 2007-08
1944 Commissioner of
Central Excise Duty 25.06 2002-03
Act, 1994 Commissioner of
Service 23.56 2007-08
(Appeals) Tax on
(xi) in our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of dues to
(xh) 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 and financial institutions
are not prima facie prejudicial to the interests of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment
(xv) To the best of kit knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DBLOITTE NASKMS & SELLS
(Registration No. 302009E)
14 th May, 2012 (Membership No. 054110)