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Tamilnadu Telecommunications Ltd.

BSE: 523419 | NSE: TNTELE |

Shares falling in the `Trade-to-Trade` or `T-segment` are traded in this series and no intraday is allowed. This means trades can only be settled by accepting or giving the delivery of shares.
Series: BE | ISIN: INE141D01018 | SECTOR: Cables - Telephone

BSE Live

May 21, 16:00
1.89 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
77
10-Day
442
30-Day
416
21
  • Prev. Close

    1.89

  • Open Price

    1.89

  • Bid Price (Qty.)

    1.86 (1)

  • Offer Price (Qty.)

    1.87 (1056)

NSE Live

May 22, 15:32
1.30 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
246
10-Day
540
30-Day
1,289
2
  • Prev. Close

    1.30

  • Open Price

    1.30

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

1. We have audited the accompanying financial statements of Tamilnadu Tele communications Limited(the Company), which comprise the Balance Sheet as at 31stMarch, 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 Financial Statements 2. 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 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 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 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 3. Our responsibility is to express an opinion on these 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 there under. 4. 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. 5. 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 control 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 adverse audit opinion on the financial statements. Opinion 6. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2015; (b) In the case of the Statement of Profit and Loss, loss for the year ended on that date; and (c) In the cash of Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter 7. Without qualifying our conclusion, we draw , attention to S.No - 3 Note 25 - Notes to Accounts. As at 31st March 2015, the Company''s accumulated losses of Rs. 9400.69 Lakhs has eroded the Net Worth of the Company, indicating the existence of material uncertainity that may cast a doubt about the Company''s ability to continue as a going concern. The Company has incurred a loss of Rs.857.49 Lakhs for the year under audit. Based on the mitigating factors discussed in the said note, the Management believes that the Going Concern assumption is appropriate. Other Matter 8. The Deferred Ta x Asset amounts to Rs.1465.16 Lakhs, as of 31st March 2015, considering all eligible carried forward losses, as per AS 22 Accounting for Taxes on Income. The same has not been provided for, in the books of account, considering the absence of virtual certainty of earning profits and prudence concept. Report on Other Legal and Regulatory Requirements 9. 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, 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. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; e. The going concern matter, described in paragraph 7 Emphasis of Matter, as above, in our opinion, may have adverse effect on the functioning of the Company. f. On the basis of written representations received from the directors as on 31st March 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2015, from being appointed as a director in terms of section 164(2) of the Act. Annexure -I ANNEXURE TO INDEPENDENT AUDITOR''S REPORT Referred to in paragraph 10 of our report of even date \On the basis of checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that: (i) In respect of Fixed Assets: a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. b. As explained to us, fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. (ii) In respect of Inventories: a. As explained to us, the inventory has been 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 inventory followed by the management are 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 is 10. 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 Companies Act, 2013, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 11. With respect to other matters to be included in the Auditor''s Report in accordance with the 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 S.No.2,10,13,14, and 19 under Note-25 Notes to Accounts 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. (iii) There were no amounts which were required to be transferred, to the Investor Education and Protection Fund, by the Company. maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of account. (iii) We are informed that there is no Company, firm or party to be listed in the register referred to in Section 189 of Companies Act, 2013 except Telecommunications Consultants India Limited (TCIL). (iv) In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the internal control system of the company. (v) The company has not accepted any deposits from public. Hence we have no comments to offer in respect of the same. (vi) We have broadly reviewed the books of accounts maintained by the company pursuant to the rules made by the Central Government for maintenance of cost records under Sec 148(1) of the Companies Act 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. (vii) In respect of Statutory Dues: a. The Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Customs Duty, Value added Tax, Cess and other material statutory dues with the appropriate authorities during the year as applicable to it except the Property Ta x amounting to Rs.32,27,400/-.We are informed by the Company that efforts are made to get exemption being a sick Company . We arealso informed that there are no employees who are eligible to becovered under Employees State Insurance scheme. b. The details of disputed dues of Sales Tax and Customs Duty which have not been deposited, as on 31st March 2015 are as given below S. No. Name of Nature of dues Amount (in Rs.) Forum where Statute pending 1. Sales Tax Additional sales Tax 1,86,08,794/- Honourable High Court of Madras 2. Sales Tax Non-Submission of 22,95,000/- Commercial Sales C-forms tax officer. 3. Customs Duty Difference in 31,55,226/- Commissioner of classification of customs, Chennai Telecommunication Grade Optic Fibre Cables. Report on the directions issued by the Comptroller and Auditor General of India, under Section 143(5) of the Companies Act 2013. Tamilnadu Telecommunications Limited Statutory Audit for the Year ended 31st March 2015. On the basis of checks as we considered appropriate and according to the information and explanations given to us, during the course of our audit, we report that: 1. If the Company has been selected for disinvestment, a complete status report in terms of valuation of Assets (including intangible assets and land) and Liabilities (including Committed & General Reserves) may be examined including the mode and present stage of disinvestment process. The Company has not been selected for disinvestment and hence reporting on this direction does not arise. 2. Please report whether there are any cases of Waiver/ Write-off of debts/loans/interest etc. if yes, the reasons there for and the amount involved. There were no cases of waiver/write-off of debts, loans/interest etc. during the year. 3. Whether proper records are maintained for inventories lying with third parties & Assets received as gift from Government or other authorities. There were no inventories lying with third parties and no assets have been received by the company as gift from Government or other authorities, during the year. 4. A report on age- wise analysis of pending legal/ arbitration cases including the reasons of (viii) The accumulated losses of the company as at 31st March 2015 is more than 50% of its Net worth. The Company has incurred cash loss of Rs.826.59 lakhs during the financial year covered by our audit. The Company has incurred cash loss in the immediately preceding financial year. (ix) The Company has not borrowed any sums from Banks or Financial Institutions or Debenture holders during the year and hence the question of default in repayment of dues to Banks or Financial Institutions or Debenture holders does not arise. (x) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Hence we have no comments to offer, in this regard. (xi) No term loans were obtained by the company during the year under audit. (xii) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit. pendency and existence/ effectiveness of monitoring mechanism for expenditure on all legal cases (foreign and local) may be given. Age-wise analysis of pending legal/arbitration cases is as given below:- S.No. Pending Legal/ 0 - 3 Years 4 - 5 Years More than Arbitration cases 5 Years 1. Commercial Tax - - 1 2. Sales Tax - - 1 3. Custom Duty - - 1 4. Income Tax - - 1 5. Other cases (BSNL) - 1 1 6. Arbitration cases 1 - 2 Total 1 1 7 The details of the above cases are given in S.no.10, 13, 14, 19 and 2 of Note no.25- Notes to Accounts to the financial statements. As informed to us, the pendency of legal/ arbitration cases is due to legal formalities in Court/arbitration proceedings. The legal expenses are incurred in accordance with the delegation of powers laid down, in this regard. For S.VENKATRAM & CO Chartered Accountants (FRN: 004656S) R. Kandavelu Place: New Delhi Partner Date: 29th May, 2015 (M.No.12811)