We have audited the accompanying financial statements of TRANSCORP
INTERNATIONAL LIMITED which comprise the Balance Sheet as at 31st
March, 2014, and the Statement of Profit & 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control 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 financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the institute of Chartered
Accountants of India. Those Standards required 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 auditors 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 auditors
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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 abasis for our opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2014.
b) In the case of Statement of the Profit & Loss, of the profit for the
year ended on that date ; and
c) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and regulatory Requirements
1. As required by the Companies (Auditors Report) order, 2003 (the
Order) issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose of our
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
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
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-section (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Auditors Report of even date on the accounts of
Transcorp International Limited, for the year ended 31st March, 2014)
i) a) The Company is maintaining proper records of fixed assets showing
full particulars including quantitative details and situations thereof.
such records showing full particulars including quantitative details
and situations of certain fixed assets is being updated.
b) As per information given to us the assets are physically verified by
the management once a year, which in our opinion is reasonable. No
material discrepancies were noticed on such verification carried out
during the year.
c) No substantial part of fixed assets have been disposed off during
the year, hence it has not affected going concern assumption.
ii) a) Inventory being the Foreign currencies and paid documents have
been physically verified during the year by the management and in our
opinion the frequency of verification is reasonable.
b) As explained to us, the procedures for physical verification of the
above referred foreign currencies and paid documents, followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The company is maintaining proper records of inventory and according
to the information and explanations given to us, material discrepancies
noticed on physical verification of the above items referred to in (a)
above as compared to book records were properly dealt with in the books
iii) a) Company has granted unsecured loans to companies covered in the
register maintained under section 301 of the Companies Act, 1956.
of parties other than subsidiaries and maximum amount involved was 1 &
Rs. 269.50 Lacs respectively. However there was no outstanding at year
end. Company has also granted advances to its two subsidiaries. The
maximum amount involved was Rs. 853.77 lacs and year end balance was
Rs. 248.05 Lacs.
b) Rates of interest and other terms and conditions of loans given by
the Company, secured or unsecured, are not prima facie prejudicial to
the interest of company; and
c) Receipt of principal and interest is also regular wherever
d) There was no over due amount and consequently question of taking
reasonable steps for recovery of principal and interest when overdue
amount is more than Rs. One Lac does not arise.
e) According to the information and explanations given to us, the
Company has during the year taken loan, unsecured from companies,
firms, or other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Number of parties and amount
involved thereon was 1 and Rs. 148.80 Lacs respectively. There was no
year end balance.
f) Rate of interest and other terms & conditions of loans taken by the
Company, secured or unsecured are not prima facie prejudicial to the
interest of the Company and payment of principal amount and interest is
also regular wherever stipulated.
iv) There are generally adequate internal control system commensurate
with the size of the Company and the nature of its business for the
inventory is foreign currencies & paid document and fixed assets and
for sale of the inventories/supply of service. During the course of our
audit, no continuing failure to correct major weakness in internal
control system has been noticed.
v) The company has entered particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 in the register
required to be maintained under that section and for transactions, the
value of which exceeds Rupees five lacs in respect of any party during
the period have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the Company has generally complied with the directions
issued by the Reserve Bank of India and the provisions of Section 58A
and 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed there under in respect of deposits accepted from
public. No order was passed by company law Board, or National Company
Law Tribunal or Reserve Bank of India or under any Court or any other
tribunal and hence question of its compliance does not arise.
vii) The Company has an in-house internal audit system, which in our
opinion is commensurate with the size of the Company and the nature of
viii) According to the information given to us, the Central Government
has not prescribed maintenance of cost records in relation to the
activities of the company under Section 209 (1) (d) of the Companies
ix) On the basis of the records produced to us, the company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues, as is applicable to it. To the best of our knowledge
and according to the information and explanations given to us, there
were no material arrears of undisputed outstanding statutory dues as at
the last day of the financial year for a period of more than six months
from the date they become payable.
There were following unpaid disputed dues of Income Tax, Sales Tax,
Service Tax, Wealth Tax Custom Tax (Duty), excise duty, and Cess:- -
Demand disputed with ITO TDS Alwar for Rs. 4.67 Lacs on respect of ITDS
discrepancies under income tax act.
x) The Company has no brought forward losses and has not incurred any
cash losses during the year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion the company has not defaulted in repayment of dues
to a financial institution or bank.
xii) On the basis of verification of the accounts and records
maintained by the company and as per explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund company.
xiv) In respect of dealing in shares, securities, debentures & other
investments proper records have been maintained of the transactions and
contracts and timely entries have been made therein. Shares,
securities, debentures & other investments as may be applicable have
been held by the Company in its own name.
xv) On the basis of information and explanations given, the Company has
not given any guarantee for loans taken by others from bank or
financial institutions, except in relation to loans taken by
subsidiaries. We are of the opinion that terms and conditions thereof
are not prima facie prejudicial to the interest of the Company.
xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
xvii) According to various records examined by us, on an overall basis,
funds raised on short term basis have prima facie, not been used during
xviii) According to the information and explanations given to us, the
company has not during the year made any preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956, and consequently question
of issuing shares at a price prejudicial to the interests of the
Company does not arise.
xix) The company has not issued any debentures during the year covered
by our audit report, hence question of creation of security or charge
xx) The company has not raised any money by public issue during the
year by our audit report, hence question of disclosure of end use of
xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year ended 31st
For Anand Jain & Co.
Anand Prakash Jain
Place : New Delhi
Date: 30th April 2014