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INDEPENDENT AUDITOR'S REPORT
To the Members of TARMAT LIMITED (Formerly known as Roman Tarmat Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of TARMAT LIMITED (Formerly known as Roman Tarmat Limited) (" the Company),which comprise the Balance sheet as at 31st March 2015 and the Statement of Profit & Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 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 principles generally accepted in India including the accounting standards specified under Section 133 of the Act, read with the 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 the assets of the company and for preventing and detecting frauds and other irregularities, the selection and application of appropriate accounting policies : making judgments and estimates that are reasonable and prudent; and the 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 misstatements, whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. 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.
5. We conducted our audit in accordance with the Standards on Auditing 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 consolidated financial statements are free from material misstatement.
6. 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 whether the company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. 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.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
8. 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:
i.In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2015; and
ii.In the case of the statement of Profit and Loss of the Loss for the year ended on that date; and
iii.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
9. As required by the Companies (Auditor's Report) Order, 2015 (the Order) issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, hereinafter referred to as the "Order" and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the maters specified in Paragraphs 3 and 4 of the Order, to the extent applicable.
10. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 purpose of the financial statement
b) In our opinion, proper books of accounts 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 and statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the relevant books of account
d) In our opinion, the Financial statement comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the Directors of the Company as on March 31, 2015, taken on record by the Board of Directors of the Company, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditors 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:
i) The Company has disclosed the impact of pending litigations on the financial position of the Company in its financial statements as of March 31, 2015.
ii) The Company has made provisions in its financial statements, as required under the applicable law of the accounting standards, for material foreseeable losses on long term contracts.
iii) There has been a delay in transferring an amount of Rs 177,000/– towards Share Application money which is required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report:
Referred to in paragraph 3 of the Independent Auditors' Report of even date on the accounts of TARMAT LIMITED on the financial statements as of and for the year ended 31st March 2015.
i) (a) The Company has maintained proper records showing full particulars of quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management of the respective entities in accordance with a regular programme of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. According to the information and explanations given to us and based on the auditors reports issued in accordance with the Order on the aforesaid subsidiaries, no material discrepancies were noticed on such verification.
ii) (a) As explained to us, Inventories have been physically verified during the year by the management.
(b) The procedure explained to us, which are followed by the management for physical verification of inventories, are in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business
(c) On the basis of our examination of the inventory records of the Company, we are of the opinion that, the company is maintaining proper records of its inventory. Discrepancies, which were noticed on physical verification of inventory as compared to book records, have been properly dealt within the books of accounts.
iii) The Company has not granted any loans, secured and unsecured, to companies, firms or other parties covered in the Registers maintained under Section 189 of the Companies Act, 2013, and therefore paragraph 3(iii) of the Order is not applicable.
iv) In our opinion and according to the information and other explanation given to us, there are generally adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and for sale of goods. During the course of previous year assessment, no major weakness in internal control has come to our notice.
v) Based on our scrutiny of the company's records and according to the information and explanations provided by the management, in our opinion the company has not accepted any loans or deposits which are ' deposits' within the meaning of Rule 2(b) of the Companies (Acceptance of Deposit's )Rules, 2014
vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government under section 148(1) of the Companies Act 2013 for maintenance of cost records and are of the opinion that primafacie, the prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii) (a) In our opinion and according to the information and explanation given to us, barring non payment of undisputed liability of TDS 182.82 Lacs, Vat Rs 105.83 Lacs and Profession Tax Rs. 4.27 Lacs and delays in payment of Tax Deducted at Source, Provident Fund and Profession Tax. the company is regular in depositing undisputed statutory dues including Investor Education and Protection fund, Employees State Insurance Income Tax, Sales Tax, Wealth Tax, Cess and other material statutory dues, if any applicable to it with appropriate authorities. According to the information and explanation given to us, except payment of TDS Rs. 182.82 Lacs, Vat Rs. 105.83 Lacs and Profession tax 4.27 Lacs, there are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31st March 15.
viii) The Company does not have accumulated losses at the end of the financial year. However it has incurred cash losses during the current financial year and in the immediately preceding financial year.
ix) According to the records of the Company examined by us and in the information and explanation given to us, the company has defaulted in repayment of following dues with Banks.
x) According to the information and explanation given to us, the company has not given guarantee for loans taken by others from bank or Financial Institution.
xi) Based on the information and explanation given to us by the management, term loans were applied for the purpose for which the loans were applied.
xii) Based upon the audit procedures and information and explanation given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
FOR HEGDE & ASSOCIATES
Firm Reg. No–103610 W