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AUDITOR'S REPORT

Tinna Rubber and Infrastructure Ltd.

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Market Cap. (₹) 17.17 Cr. P/BV 0.24 Book Value (₹) 83.23
52 Week High/Low (₹) 66/19 FV/ML 10/1 P/E(X) 0.00
Bookclosure 06/09/2019 EPS (₹) 0.00 Div Yield (%) 0.00
Year End :2016-03 

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of TINNA RUBBER AND INFRASTRUCTURE LIMITED (“the Company”), which comprise the Balance Sheet as at March 31st, 2016, 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.

Management’s Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act. 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 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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, 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 qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

The Company has not provided interest amounting to Rs.9,49,626/- as required under the provisions of section 16 of Micro, Small and Medium Enterprise Development Act, 2006 in respect of delayed payments to suppliers covered under the said Act. Consequently, the profit for the year ending 31st March 2016 is overstated to the extent.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, subject to the possible effects of the matters described in the Basis for Qualified Opinion paragraphs, 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 India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016

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 Requirements

1. As required by the Companies (Auditor's report) Order, 2016(“the Order'') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 'A' a statement on matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that:

(a) We have sought and 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 appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, does not have any adverse effect on the functioning of the company.

(f) On the basis of written representations received from the directors as on March 31st ,2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31st ,2016, from being appointed as a director in terms of Section 164(2) of the Act;

(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

(h) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure 'B'; and

(i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

(1) The Company has disclosed the impact of pending litigations on its financial position in its financial statements,

(2) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts, if any, and

(3) There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.

The Annexure referred to in paragraph 1 under the heading “Report on other legal and regulatory requirements” of our report to the members of TINNA RUBBER AND INFRASTRUCTURE LIMITED (the Company) for the year ended 31.03.2016. We report that:

1) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has a phased periodical programme of physical verification of all fixed assets, which in our opinion is reasonable having regard to the size of the Company and the nature of its business. No material discrepancies have been noticed on such verification.

(c) As per explanation given to us, the title deeds of immovable properties are held in the name of the Company.

2) As per explanations given to us, inventories have been physically verified by the management at reasonable interval. In our opinion, the frequency of the verification is reasonable and no material discrepancies were noticed on physical verification of stocks as compared to book records.

3) The Company had granted loans to parties aggregating to Rs. 55,00,000/- at the beginning of the year which are covered in the register maintained under section 189 of the Companies Act, 2013. The said parties have an outstanding balance of Rs. NIL as at the end of the year.

(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.

(b) In the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as stipulated

(c) There is no overdue amount for more than ninety days as at the end of the year.

4) In our opinion and according to the information and explanations given to us, the Company has complied with provisions of Section 185 and 186 of Companies Act, 2013 in respect of loans, investments, guarantees, and securities granted. In case of corporate guarantees given by the Company to TP Buildtech Private Limited, and Fratelli Wines Private Limited, Shri Kapil Sekhri, a Director in the said Companies was appointed as a director in the Company w.e.f 12th February 2016 to 4th May, 2016. No fresh corporate guarantee was given during the said period.

5) According to information and explanations given to us, the Company has not accepted any deposits as per the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.

6) We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of Rubber and Rubber Product-waste, Parings and Scrap of Rubber and are of the opinion that, prima facie, the prescribed accounts and cost records have been maintained. We have not, however, made a detailed examination of the same.

7) a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales-Tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other undisputed statutory dues, except income tax payable amounting to Rs. 1,25,80,142/- and excise duty payable amounting to Rs.32,57,451/- on account of goods destroyed by fire in the month of April and June,2015, which are in arrears as at 31st March, 2016, concerned for a period of more than six months from the date they become payable.

b) According to the records of the Company, the dues outstanding of income tax and other taxes on account of any dispute, are as follows:-

S.

No.

Name of Statute

Nature of Dues

Amount (Rs.)

Financial

Year

Forum where dispute is pending

1

Income Tax Act, 1961

Income Tax

73,50,358/-

2000-2001

Delhi High Court

2

Income Tax Act, 1961

Income Tax

4,91,962/-

2005-2006

Income Tax Appellate Tribunal

3

Income Tax Act, 1961

Income Tax

4,98,512/-

2006-2007

Income Tax Appellate Tribunal

4

Income Tax Act, 1961

Income Tax

18,12,243/-

2007-2008

Income Tax Appellate Tribunal

5

Income Tax Act, 1961

Income Tax

41,04,979/-

2008-2009

Income Tax Appellate Tribunal

6

Income Tax Act, 1961

Income Tax

41,11,208/-

2005-06 To 2009-10

Commissioner of Income Tax (Appeals), Delhi

7

Service Tax

Service Tax (excluding penalties and interest)

50,12,301/-

01.04.2008 to 30.06.2012

Customs, Excise & Service Tax Appellate Tribunal, Delhi

8

Excise Duty

Excise Duty

5,49,986/-

01.04.2010 to 31.03.2012

Commissioner of Central Excise, Customs & Service Tax (Appeals), Vapi

9

Excise Duty

Excise Duty

1,45,134/-

2011-12

Commissioner of Central Excise (Appeals), Mumbai

8) Based on the information and explanations given to us by the management, the Company has not defaulted in the repayment of loans or borrowing to a Financial Institution, Bank, Government or dues to debenture holders wherever applicable. The balance in working capital limits have exceeded the sanctioned limits from time to time. As explained to us the balance is within the sanctioned limit plus 10% adhoc limit within the powers of the bank.

9) Based on the information and explanations given to us by the management, the Company has not raised any money by way of initial public offer / further public offer and debt instruments. However money raised by way of term loan were applied for the purpose for which the said term loans were obtained.

10) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud / material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.

11) In our opinion and according to the information and explanation given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of this clause of the order are not applicable to the Company and hence not commented upon.

13) As per the information given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards;

14) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(14) are not applicable to the company and, not commented upon.

15) In our opinion and according to the information and explanation given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.

16) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For V.R. Bansal & Associates

Chartered Accountants

Firm Registration No. 016534N

(Rajan Bansal)

Place : Delhi Partner

Dated: 30th May, 2016 Membership No. 093591

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