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Taneja Aerospace and Aviation Ltd.

BSE: 522229 | NSE: TANEJAERO | Series: | ISIN: INE692C01020 | SECTOR: Miscellaneous

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Taneja Aerospace and Aviation is not listed on NSE

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

1. We have examined the attached Balance Sheet of Taneja Aerospace and Aviation Limited (the company) as at 31st March 2008, and also the Profit and Loss Account and the Cash Flow Statement of the company for the period 1st July 2007 to 31st March, 2008. 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 misstatements. 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 the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 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 to the extent applicable. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: 4.1 The Companys method of valuation of inventories is not in accordance with the Accounting Standard (AS) 2. Further, in the absence of adequate supporting and detailing, we are unable to verify and comment on quantity and valuation of inventory as certified by the management. 4.2 The difference between the actual sales tax liability and discounted value is being treated as revenue expenditure in the year in which it is paid. This accounting practice is not in accordance with generally accepted accounting principles. (Refer Note No 9) It is not possible to quantify (which may be substantial) the exact impact of the paragraph 4.1 and 4.2 above on the profit of the year. 4.3 Finance charges paid to a bank during the year amounting to Rs. 100 lakh towards the past claim for interest waiver is directly debited to the Profit and Loss Appropriation Account instead of charging the same to Profit and Loss Account, which is not in accordence with generally accepted accounting principles (Note No. 8) 4.4 The Company has not provided for Employee Benefits in accordance with AS 15 (Revised). (Refer Note No.10). Consequent to points 4.3 and 4.4 above, the profit for the period would have been lower by around Rs. 131 lakh. 4.5 Company has recognised revenue for long term fixed price contract on percentage completion method as per AS-7 Construction Contract. The Company has not maintained contract wise cost and other details as a result no disclosures as required under AS7 Is made. 5. Subject to our comments In paragraph 4 above and our comments In the annexed report, a) We have 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 accounts as required by law have been kept by the company so far appears from our examination of books; c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by our report are in agreement with books of accounts; d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by the report comply with the accounting . standards referred to in sub-section (3C) of section 211 of Companies Act, 1956 e) on the basis of written representations received from the Directors as on March 31, 2008 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2008 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; and f) in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the schedules thereto and the notes thereon give information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2008; (ii) in case of Profit and Loss Account, of the loss for the period ended on that date; and (iii) in the case of Cash Flow Statement, of the cash flows for the period ended on that date. ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date) 0) a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b. According to the information and explanation given to us, the fixed assets were physically verified by the management in accordance with the programme of verification, which In our opinion is reasonable having regard to size of the Company and the nature of its assets. The discrepancies noticed on physical verification were not material and have been dealt with in the books of account. c. According to the information and explanations given to us, the company has not disposed off major part of fixed asset during the period under audit, which would affect the going concern of the company. (ii) a. The company has not produced any physical verification report of inventory for the year under audit. Hence we are unable to give our comments on the conduction of physical verification of inventory by management at reasonable intervals and adequacy of the procedures for the same. b. Further, we draw your attention to item no.4.1 of our main Audit Report which is self explanatory. (iii) In respect of unsecured loans granted to companies covered in Register maintained under Section 301 of the Companies Act, 1956 and according to the information and explanation given to us- a. During the year, the Company has granted advances aggregating to Rs.875 lakh to Company / Companies covered in the Register maintained under Section 301 of the Companies Act, 1956. At the year end, the aggregate advances outstanding from these companies were Rs.600 lakh (excluding interest on it). The maximum balance outstanding during the year is Rs.2807 lakh. Further, company has made advance of around Rs.300 lakhs to one of the companies covered in the Register maintained under Section 301 of the Companies Act, 1956 as share application. However till date, no shares have been allotted. b. As explained to us, the advance is repayable on demand. In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions or. which advance have been granted to companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company. c. As the advance is repayable on demand, we are unable to comment on regularity of receipt of principal and interest amount. d. No loan or interest can be termed as overdue in absence of time of repayment and thus the question of taking reasonable step for recovery of principal amount and interest there on does not arise. e. During the year, the Company has taken advances aggregating to Rs.1175 lakh from one of the companies covered in the Register maintained under Section 301 of the Companies Act, 1956. At the year end, the aggregate amount outstanding was Rs.300 lakh (excluding interest on it). The maximum balance outstanding during the year is Rs.1100 lakh. f. As explained to us, the advance is repayable on demand. In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of advance taken by the company; are prima facie not prejudicial to the interest of the company; g. As the advance is repayable on demand, we are unable to comment on the regularity of repayment of principal and interest amount. (iv) In our opinion and according to the information and explanations given to us, there are certain weaknesses in internal control in stores, purchase procedure and in accounting of revenue of the company. Based on checking carried out and the explanations given to us we are of the opinion that there is continuing failure to correct major weakness in the internal control system of inventory and purchase procedure. (v) a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered. b) In our opinion and according to explanations given to us, transactions made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakh have been made at prices which are reasonable having regard to prevailing market prices at the relevant time subject to our comments contained in clause (iii) (b). (vi) As per explanation given to us, the Company has not accepted any deposits from public to which the provisions of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 would apply. Therefore, the provisions of clause 4 (vi) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (vii) Based on our observation, we are of the opinion that company does not have internal audit system commensurate with the size and nature of business of the company. (viii) The Central Government has not prescribed the maintenance of the Cost Record u/s 209(1) (d) of the Companies Act, 1956 and hence the provisions of clause 4 (viii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (ix) a) According to the information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, income-tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues with the appropriate authorities during the year. b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty, cess and other material statutory dues, were in arrears, as at 31st March, 2008 for a period of more than six months from the date they became payable, except. Name of Nature of Amount Period to Statute Dues (Rs.in Lakh) which it relates The Income Tax 11.45 lakh Apr-06 to Tax Act, deducted June-07 1961 but not paid c) According to the explanation and information given to us, there are no dues of Income tax/ Sales tax/ wealth tax/Service tax/Custom duty/ Excise duty/cess which have not been deposited on account of any dispute (x) The Company does not have any accumulated losses. The company has not incurred any cash losses during the period covered by our audit and in the immediately preceding financial year. (xi) According to the records of the company examined by us and the information and explanation given to us, the company has not defaulted in repayment of dues of any financial institutions or bank. The company is paying the interest on the Bank Loans that have been computed and provided in the accounts based on restructuring scheme as approved by banks subject to continuance of compliance of conditions of scheme. (xii) According to the explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (xv) 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 bank or financial institution. Hence, the provisions of clause 4 (xv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (xvi) As per the information and explanations given to us, the Company has not raised any term loan during the year under audit and hence clause 4 (xvi) of the Companies (Auditors Report) Order, 2003 is not applicable to the company. (xvii) According to information and explanation given to us, and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long- term investment. (xviii) According to information and explanation given to us, during the period covered by our audit report, the company has not made preferential allotment of equity shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956. Further, the advance as appearing in preceding year balance sheet of Rs. 173.25 lakh has been forfeited by the company since the applicant has not exercised the option within the allowable time limit. The forfeited amount has been credited to the Securities Premium Account. (xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period of our audit. Therefore, clause 4 (xix) of the Companies (Auditors Report) Order, 2003 is not applicable to the company. (xx) The company has disclosed the end use of the funds raised through Preferential issue by way of notes on accounts and we have verified the same. (xxi) To the best of our knowledge and belief and 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. For HARESH UPENDRA & CO. Chartered Accountants, HARESH B. SHAH Partner Membership No.: 32208 Pune, June 30, 2008