TITAN INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
TITAN INDUSTRIES LIMITED
1. We have audited the attached Balance Sheet of TITAN INDUSTRIES LIMITED
("the Company") as at 31st March, 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 enclose 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 as follows:
(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 dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956;
(e) 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(iii) 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 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March, 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
Partner
Chennai, 30 April, 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/results, clauses (iii) (f), (iii) (g), (xii), (xiii),
(xiv) and (xx) of CARO are not applicable.
ii) In respect of fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification which, in
our opinion, provides for physical verification of all fixed assets at
reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification.
c) The fixed assets disposed off during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and such
disposal has, in our opinion, not affected the going concern status of the
Company.
iii) In respect of its inventories:
a) As explained to us, 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 proper records of inventories and no
material discrepancies were noticed on physical verification.
iv)a) During the year, the Company has not granted any loans, secured or
unsecured, to companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956. In respect of
unsecured loans, granted to such a party in earlier years, the maximum
amount involved at any time during the year and the year end balance is
Rs.240.54 lakhs. The balance has been fully provided as no recoveries are
expected and therefore clauses (iii) (b) to (d) of CARO are not applicable.
b) The Company has not taken any loans, secured or unsecured, 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/sold are of a special nature and suitable alternative sources are
not readily available for obtaining comparable quotations/ prices, there is
an adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of inventory
and fixed assets and for the sale of goods and services. During the course
of our audit, we have not observed any major weaknesses in such internal
control system.
vi) In respect of the contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to the
best of our knowledge and belief and according to the information and
explanations given to us:
a) The particulars of contracts or arrangements referred to in Section 301
that need to be entered in the Register maintained under the said Section
have been so entered.
b) Where each of such transaction is in excess of Rs.5 lakhs in respect of
any party, and having regard to our comments in paragraph (v) above, the
transactions have been made at prices which are prima facie reasonable
having regard to the prevailing market prices at the relevant time .
vii) According to the information and explanations given to us, the Company
has not accepted any deposits from the public during the year. In respect
of unclaimed deposits, the Company has complied with the provisions of
Sections 58A, 58AA and other relevant provisions of the Companies Act,
1956.
viii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
ix) 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.
x) 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, Customs duty, Excise duty, Cess and other material statutory
dues applicable to it with the appropriate authorities.
b) There were no undisputed statutory dues, including Provident Fund,
Investor Education and Protection Fund, Employees` State Insurance, Income-
tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess
and other material statutory dues in arrears as at 31st March 2012, for a
period of more than six months from the date they become payable.
c) Details of dues of Income-tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty and Cess which have not been deposited as on 31st
March, 2012 on account of any disputes are given below:
Name of Statute Amount Period to which the Forum where Dispute
& Nature of (Rs. in amount relates is pending
the Dues lakhs)
Income-tax
Act, 1961:
Income tax 2.39 1997-98 High Court
25.21 2002-03 Income Tax Appellate
Tribunal
Sales Tax:
Laws Sales tax 71.55 2000-01 High Court
176.54 2003-04, 2005-06, 2008-09 Additional
Commissioner of
Sales Tax
210.80 2000-01, 2002-03, 2003-04, Deputy Commissioner
2004-05, 2005-06 of Sales Tax
32.56 2005-06 Joint Commissioner
(Appeals) of Sales
Tax
5.99 2004-05 Assistant
Commissioner of
Sales Tax
6.28 2010-11 Commercial Tax
Inspector of
Sales Tax
The Customs
Act, 1962
Customs duty 316.94 1989-94 Supreme Court
The Central
Excise Act,
1944
Excise duty 2,272.59 May 2005 to March 2009 Supreme Court
0.42 July 2001 to July 2002 High Court
285.88 March 1987 to February 1990, Customs, Excise and
April 1995 to October 1998 Service Tax
and 2001-09 Appellate Tribunal
108.73 March 2002 to February 2003, Commissioner of
July 2007 to February 2009, Central Excise
October 2009 to February (Appeals)
2010 and July 2009 to
December 2010
7,030.25 September 2005 to July 6, Commissioner of
2009 Central Excise
9.54 July 1999 to November 1999 Additional
Commissioner of
Central Excise
421.38 1996-97, 1998-2001, 2004-07, Assistant
April 2008 to March 2011 Commissioner of
Central Excise
vi) The Company has neither accumulated lossses at the end of the financial
year nor it has incurred cash losses during the current financial year and
in the immediately preceding financial year.
vii) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to banks,
financial institutions and debenture holders.
viii) The Company has not given any guarantee for loans taken from banks or
financial institutions.
ix) In our opinion and according to the information and explanations given
to us, the term loan has been applied for the purpose for which it was
obtained.
x) 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 raised on short term basis have not been used during the year for
long term investment.
xi) The Company has not made any preferential allottment of shares to
parties and companies covered in the Register maintained under Section 301
of the Companies Act, 1956.
xii) As per the information and explanations given to us, the Company has
created security in respect of debentures issued.
xiii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud on
the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 008072S)
V. Srikumar
Partner
Chennai, 30 April, 2012 (Membership No. 84494) |