Report on the Financial Statements
We have audited the accompanying financial statements of Transport
Corporation of India Ltd. (the Company), which comprise the Balance
Sheet as at 31st March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information in
which are incorporated the audited accounts of the TCI Seaways division
and the branches in Nepal as audited by other auditors.
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
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in section 21 l(3C)
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.
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 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 misstatements.
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 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 Company''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 a basis for our audit 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 the Statement of Profit and 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
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of section
227(4A) 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
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
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us. The Branch Auditors''
Reports have been forwarded to us and appropriately dealt with.
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 and with the returns received from branches not visited by us;
d.) in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in section 21 I (3C) of the Act, and
e.) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,20l4,from being
appointed as a director in terms of section 274 (I) (g) of the Act.
Annexure to Independent Auditors'' Report
Referred to in paragraph I under the heading of Report on other Legal
and Regulatory Requirements of our report of even date.
1. The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets. We are
informed that a test physical verification of these assets was carried
out by the management during the year and no material discrepancies
2. Physical verification was conducted by the management in respect of
inventories at reasonable intervals. The Company has maintained proper
records of its inventories and no material discrepancies were noticed
on physical verification. The procedures followed by the management for
such physical verification are, in our opinion, reasonable and adequate
in relation to the size of the Company and the nature of its business.
3. The Company has not granted or taken during the year any loans
secured or unsecured from companies, firm or other parties covered in
the register maintained under Section 301 of the Act.
4. There is an adequate internal control system commensurate with the
size and nature of the Company''s business for the purchase of
inventories, fixed assets and for the sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal control system, nor we have been informed of any such
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, the / particulars of
contracts or arrangements that need to be entered into the register in
pursuance of Section 301 of the Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register in pursuance of Section 301 of
the Act, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
6. The Company has complied with the provisions of Sections 58A, 58AA
and other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public.
7. The Company has appointed a firm of Chartered Accountants at the
TCI Seaways Division to do the internal audit regularly. At other
places the in-house internal audit department of the company conducted
internal audit. The internal audit system is being constantly reviewed
and strengthened to commensurate with the size and nature of Company''s
8. We have broadly reviewed the accounts and records maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209( I) (d) of the Act in
respect of Electricity generation. We are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of such
9. (a) According to the information and explanation given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth tax, service
tax, custom duty and other material statutory dues as applicable with
the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Excise Duty Trade Tax, Stamp Duty, Employees'' State Insurance and Labour
Laws as at March 31,2014 which have not been deposited on account of a
dispute are as under:
Nature of Dues Amount Forum where pending
Trade Tax 149 Various Authority
Labour laws 94 Civil Court
Stamp Duty 40 Chief Controlling Revenue Authority
Insurance 29 Supreme Court
Excise Duty 27 Central Excise & Service Tax
10. The Company has no accumulated losses as at March 31,2014 and has
not incurred any cash losses in the financial year ended on that date
or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or banks or debenture
holders as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security byway of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments. The investments in
shares, securities, debentures etc. are held by the Company in its own
15. In our opinion, and according to the information and explanations
given to us. the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions, are not prima facie prejudicial to the interest of the
16. In our opinion, and according to the information and explanations
given to us, on an overall basis. the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us. funds raised on short-term basis have not been
used for long-term investment.
18. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the Act
19. There are no debentures outstanding at the year end.
20. The Company has not raised any money by public issues during the
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by management.
For R. S. Agarwala & Co.
Firm''s Regn. No. 304045E
Camp: Gurgaon Partner
Date: 24thMay,20l4 Membership No.005534