INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF TATA CERAMICS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of TATA CERAMICS LIMITED ("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 the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Company s 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 notified under
the Companies Act, 1956 ("the Act") (which continue to be applicable in respect
of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs) and in accordance with the
accounting principles generally accepted in India. 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.
Auditors 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 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.
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
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
auditor considers internal control relevant to the Companys 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 Companys internal control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the 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.
Opinion
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 Act
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 31-
March, 2014;
(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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government 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 purposes 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) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement comply with the Accounting Standards notified under the Act (which continue
to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated 13lh September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the directors as on 31si
March, 2014 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 Section 274(1)(g) of the Act.
|
For DELOITTE HAS KINS & SELLS |
|
Chartered Accountants |
|
(Firm Registration No. 008072S) |
|
M. Ramachandran |
| Kochi |
Partner |
| 13 June, 2014 |
Membership No. 16399 |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
(i) Having regard to the nature of the Companys business/activities/results during the
year, clauses (i) (c), (iii) (b) to (d) , (f) and (g), (iv) with regard of sale of
service, (vi), (xii), (xiii), (xv), (xvi), (xix) and (xx) of paragraph 4 of the Order are
not applicable to the Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained records showing particulars of fixed assets, although
quantitative details and description of some of the assets are yet to be updated.
(b) Some of the fixed assets were physically verified during the year by the Management
in accordance with a programme 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 inventories:
(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 explanations 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.
(c) In our opinion, and according to the information and explanations given to us, the
Company has maintained records of its inventories and discrepancies noticed on physical
verification have been properly dealt with in the books of account.
(iv) The Company has neither granted nor taken any loans, secured or unsecured, to/from
companies, firms or other parties covered 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,
there is an adequate internal control system commensurate with the size of the Company and
the nature of its business for the purchase of inventory and fixed assets and for the sale
of goods, and during the course of our audit, we have not observed any continuing failure
to correct major weaknesses in such internal control system.
(vi) To the best of our knowledge and belief, and according to the information and
explanations given to us, there are no contracts or arrangements that needed to be entered
in the Register maintained in pursuance of Section 301 of the Companies Act, 1956.
(vii) In our opinion, the internal audit functions 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.
(viii) 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 made and maintained. We have, however,
not made a detailed examination of the cost records with a view to determine whether they
are accurate or complete.
(ix) According to the information and explanations given to us, in respect of statutory
dues:
(a) The Company has generally been regular in depositing undisputed statutory 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 Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Excise Duty, Cess and other material statutory dues in arrears as at 31s1
March, 2014 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 31s1 March, 2014 on
account of disputes are given below:
| Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved t |
| Income Tax Act, 1961 |
Income Tax |
Commissioner Of Income Tax (Appeals), Ernakulam |
2001-02 and 2002-03 |
1,333,934 |
(x) 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 during the
financial year covered by our audit and in the immediately preceding financial year.
(xi) 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 from which working capital
facilities have been availed.
(xii) Based on our examination of the records and evaluation of the related internal
controls, the Company has maintained proper records of the transactions and contracts in
respect of its dealing in shares and securities, and timely entries have been made
therein. The aforesaid securities have been held by the Company in its own name.
(xiii) In our opinion, and according to the information and explanations given to us,
and on an overall examination of the Balance Sheet of the Company, we report that funds
raised on short-term basis have, prima facie, not been used during the year for
long-term investment.
(xiv) During the year, the Company has not made any preferential allotment of shares to
the parties and companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
(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 HAS KINS & SELLS |
|
Chartered Accountants |
|
(Registration No.008072S) |
|
M. Ramachandran |
| Kochi |
Partner |
| 3 June, 2014 |
(Membership No.16399) |
+91-9892691696
