SENSEX NIFTY
Titagarh Wagons | Auditor's Report > Infrastructure - General > Auditor's Report from Titagarh Wagons - BSE: 532966, NSE: TWL
YOU ARE HERE > MONEYCONTROL > MARKETS > INFRASTRUCTURE - GENERAL > AUDITORS REPORT - Titagarh Wagons

Titagarh Wagons

BSE: 532966|NSE: TWL|ISIN: INE615H01020|SECTOR: Infrastructure - General
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Sep 23, 16:01
119.30
-1.8 (-1.49%)
VOLUME 84,878
LIVE
NSE
Sep 23, 15:57
119.10
-2.2 (-1.81%)
VOLUME 366,543
« Mar 14
Auditor's Report (Titagarh Wagons) Year End : Mar '15
 We have audited the accompanying standalone financial statements of
 Titagarh Wagons Limited (the Company), which comprise the Balance
 Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
 Flow Statement for the year then ended, and a summary of significant
 accounting policies and other explanatory information.
 
 Management''s Responsibility for the 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 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 of 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 the 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 misstatement, 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, issued by the
 Institute of Chartered Accountants of India, as 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 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 controls 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 effectiveness of such
 controls. An audit also includes evaluating the appropriateness of
 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 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, 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 of India in terms of
 sub-section (11) of Section 143 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
 purpose 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, Statement of Profit and Loss, and 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 written representations received from the directors
 as on March 31, 2015, and 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 - Refer Note 5(b)(i) and
 Note 30(A) to the financial statements;
 
 ii.  The Company did not have any long-term contracts, including
 derivative contracts, for which there were any material foreseeable
 losses;
 
 iii. There are no amounts which were required to be transferred, during
 the year to the Investor Education and Protection Fund by the Company.
 
 Annexure to the Auditor''s Report
 
 Referred to in our report of even date to the members of Titagarh
 Wagons Limited as at and for the year ended March 31, 2015
 
 (i) (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) All fixed assets have not been physically verified by the
 management during the year but there is a regular programme of
 verifying the fixed assets 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.  No material discrepancies were noticed on such
 verification.
 
 (ii) (a) The management has conducted physical verification of
 inventory at reasonable intervals during the year.
 
 (b) 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. However, in the case of
 bulky material, like scrap where the weighment is not practically
 possible and it require volumetric measurement, we have relied on the
 report of independent technical expert about the quantity of such stock
 valued at Rs. 1,112.99 lacs.
 
 (c) The Company is maintaining proper records of inventory and no
 material discrepancies were noticed on physical verification.
 
 (iii) According to the information and explanations given to us, the
 Company has not granted any loans, secured or unsecured to companies,
 firms or other parties covered in the register maintained under Section
 189 of the Companies Act, 2013. Accordingly, the provisions of clause
 3(iii)(a) and (b) of the Order are not applicable to the Company and
 hence not commented upon.
 
 (iv) In our opinion and according to the information and explanations
 given to us, having regard to the explanation that some of the items
 purchased are of special nature and suitable alternative sources do not
 exist for obtaining comparable quotations thereof, 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 and fixed
 assets and for the sale of goods and services. During the course of our
 audit, we have not observed any major weakness or continuing failure to
 correct any major weakness in the internal control system of the
 Company in respect of these areas.
 
 (v) The Company has not accepted any deposit from the public.
 
 (vi) We have broadly reviewed the books of account maintained by the
 Company pursuant to the rules made by the Central Government for the
 maintenance of cost records under Section 148(1) of the Companies Act,
 2013, related to the manufacture of wagons, coaches and engineering
 products,and are of the opinion that prima facie, the specified
 accounts and records have been made and maintained. We have not,
 however, made a detailed examination of the same.
 
 (vii) (a) 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 as applicable to the Company have generally been
 regularly deposited with the appropriate authorities.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of provident fund, employees''
 state insurance, income-tax, wealth-tax, service tax, sales-tax,
 customs duty, excise duty, value added tax, cess and other material
 statutory dues were outstanding, at the year end, for a period of more
 than six months from the date they became payable.
 
 (c) According to the records of the Company, the dues outstanding of
 income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
 duty, value added tax and cess on account of any dispute, are as
 follows :
 
 Name of the           Nature of dues                        Amount
 statute                                                    (Rs. in lacs)
 
 The lncome Tax       Disallowance under various                  570.97
                      sections
 Act,1961
 
 The West Bengal      Short payment of sales tax                    5.24
 Sales Tax Act,
 1944
 
 The Value Added      Additional Demand of Sales                  210.96
 TaxAct,2003          tax under varioussections,
                      disallowanceofinput
                      tax credit, levy of purchase
                      tax etc.
 
 The Value Added      Additional Demand of Sales tax under        102.33
 TaxAct,2003          varioussections,disallowanceofinput
 
                      tax credit, levy of purchase tax etc.
 
 The Central Sales    Non submission of C Forms                   155.07
 Tax Act, 1956
 
 The Central Sales    Additional demand of sales tax under        326.89
 Tax Act, 1956        various sections and non-submission of
                      Form
 
 The West Bengal      Interest on deferment of payment of tax      42.40
 Sales TaxAct,1944    for purchase of fixed capital assets
 
 The Central Excise   Incorrect availment of cenvat credits,   10,134.24
 Act,1944             short payment of duty including interest
                      etc.
 
                                                                  228.78
 
 
 
                                                                  885.57
 
 
 
 The Customs Act,     Non-fulfilment of Export Obligation        1190.54
 1962
 
 Foreign Trade        Terminal excise duty for sale of wagons     693.20
 Development and      under EPCG scheme, earlier refunded
 Regulation Act,
 1992
 
 
 Name of the             Period to which            Forum where
 statute                 the amount relates         dispute is pending
 
 The lncome Tax          2002-2003             DeputyCommissioner/
 Act,1961                to2010-2011           Commissioner of lncome
                                               Tax
 
 The West Bengal         2004-2005              West Bengal Taxation
 Sales Tax Act,                                 Tribunal
 1944
 
 The Value Added         2005-06,2007-08,       WestBengalAppellate&
 TaxAct,2003             2008-09,2010-11        Revisional Board
 
 The Value Added         2011-12                Additional Commissioner
 TaxAct,2003                                    Commercial Taxes
 
 The Central Sales      2005-06to2010-11       Appellate&RevisionalBoard
 Tax Act, 1956
 
 The Central Sales        2011-12              Additional Commissioner
 Tax Act, 1956                                 Commercial Taxes
 
 The West Bengal          2004-05              Additional Commissioner
 Sales TaxAct,1944                             Commercial Taxes
 
 The Central Excise      November2006          Commissioner of Central
 Act,1944                toMarch2014           Excise andServiceTax(LTU)
 
 
                       1996-97,2006-07         Commissioner of Central
                        to2012-13              Excise (Appeal)
 
                        1995-96,2003-04,       CESTAT, Kolkata
                       2006-07 to 2008-09
 
 The Customs Act,          2006-2008           CESTAT,Kolkata
 1962
 
 Foreign Trade              2008-10            GFT,Kolkata
 Development and
 Regulation Act,
 1992
 
 (d) There were no amounts which were required to be transferred to the
 Investor Education and Protection Fund by the Company, during the year
 in accordance with the relevant provisions of the Companies Act, 1956
 (1 of1956) and rules made thereunder.
 
 (viii) The Company has no accumulated losses at the end of the
 financial year and it has not incurred cash losses in the current and
 immediately preceding financial year.
 
 (ix) Based on our audit procedures and as per the information and
 explanations given by the management, we are of the opinion that the
 Company has not defaulted in repayment of dues to a bank. The Company
 did not have any outstanding dues in respect of a financial institution
 or debenture holders during the year.
 
 (x) According to the information and explanations given to us, the
 Company has given guarantees (including put option) for loans taken by
 subsidiary companies (refer Note 30 to the financial statements) which
 is in the same line of business, from a bank, the terms and conditions
 whereof, in our opinion, are not prima-facie prejudicial to the
 interest of the Company . According to the information and explanations
 given to us, the Company has not given any guarantee for loans taken by
 others from financial institutions.
 
 (xi) The Company did not have any term loans outstanding during the
 year.
 
 (xii) We report that during the year under audit, as informed by the
 management, there was a fraud committed on the Company by external
 parties amounting to Rs8.52 lacs. The Company has subsequently
 recovered the entire amount and accordingly there is no financial
 impact on the Company.
 
                                           For S. R. Batliboi & Co. LLP
                                                  Chartered Accountants
                                     ICAI Firm Registration No.:301003E
 
                                                      per Kamal Agarwal
 Place: Kolkata                                                 Partner
 Dated : April 18, 2015                            Membership No. 58652
 
 
 
Source : Dion Global Solutions Limited
Quick Links for titagarhwagons
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.