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TATA ADVANCED MATERIALS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS' REPORT
TO
THE MEMBERS OF
TATA ADVANCED MATERIALS LIMITED
1. We have audited the attached Balance Sheet of TATA ADVANCED MATERIALS
LIMITED ('the Company') as at March 31, 2012, the Statement of Profit and
Loss and the Cash Flow Statement of the Company for the year ended on that
date, both annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and the
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and the 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 (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit;
(ii) 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;
(iii) 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;
(iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(v) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the Directors
as on March 31, 2012 taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on March 31, 2012 from being
appointed as a director in terms of Section 274(1)(g) of the Companies Act,
1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 008072S)
V. Srikumar
Place: Bengaluru, Partner
Date : June 13, 2012 Membership No. 84494
ANNEXURE TO THE AUDITORS' REPORT:
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's business/activities/
result, clauses i (c), iii (b) to (d), (f) and (g), v, vi, xii, xiii, xiv,
xix and xx of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular program of verification which, in
our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanation given
to us, the procedures of physical verification of inventories followed by
the Management were reasonable and adequate in relation to the size of the
Company and the nature of its business except in respect of work in
progress where the procedure needs to be strengthened.
(c) The Company has strengthened its documentation process relating to
finished goods and work in progress in the current year. In our opinion and
according to the information and explanations given to us and read with our
comments as above, the Company has maintained proper records of its
inventories. Material discrepancies noticed on physical verification have
been appropriately dealt with.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations given
to us, having regard to the explanations that some of the items purchased
are of special nature and suitable alternative sources are not readily
available for obtaining comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and the
nature of its business with regard to purchases of inventory and fixed
assets and the sale of goods and services. During the course of our audit,
we have not observed any major weakness in such internal control system.
(vi) In our opinion, the internal audit function carried out during the
year by a firm of Chartered Accountants appointed by the management have
been commensurate with the size of the Company and the nature of its
business.
(vii) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under Section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
(viii) According to the information and explanations given to us in respect
of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues,
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues applicable
to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-Tax,
Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2012 for a period
of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on March
31,2012 on account of disputes are given below:
Name of statute Nature of the Forum where Period to which Amount
dues dispute is the amount (Rs.)
pending relates
Customs and Penalty Commissioner of March 2006 to 447,829
Excise Laws Central Excise October 2008
(Appeals)
Customs and Excise and Customs, Excise November 2008 327,396
Excise Laws Penalty and Service Tax to July 2009
Appellate
Tribunal
Customs and Excise and Customs, Excise March 2006 to 3,866,426
Excise Laws Penalty and Service Tax October 2008
Appellate
Tribunal
(ix) The accumulated losses of the Company at the end of the financial year
are not less than fifty percent of its net worth and the Company has
incurred cash losses in the financial year and the immediately preceding
financial year.
(x) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in the repayment of dues to banks,
financial institutions. The Company has not issued any debentures.
(xi) The company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for which
they were obtained.
(xiii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we report
that funds aggregating to Rs 284,988,578/- raised on short-term basis have
been used during the year for long-term investment.
(xiv) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section 301
of the Act.
(xv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 008072S)
V. Srikumar
Place: Bengaluru, Partner
Date : June 13,2012 Membership No. 84494
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