view / download the documents. - til india

Annexure to Auditors’ ReportAnnexure referred to in paragraph 3 of the report of even date of the auditors to the membersof TIL LIMITED on the financial statements for the year ended 31st March, 20091. (a) The Company has maintained proper records to show fullparticulars including quantitative details and situation offixed assets.(b) The fixed assets of the Company are physically verifiedby the management according to a phased programmedesigned to cover all the items over a period of three years,which in our opinion, is reasonable having regard to the sizeof the Company and the nature of its assets. Pursuant to theprogramme, a part of the fixed assets has been physicallyverified by the management during the year and no materialdiscrepancies between the book records and the physicalinventory have been noticed.(c) In our opinion, and according to the information andexplanations given to us, a substantial part of fixed assetshas not been disposed off by the Company during the year.2. (a) The inventory of the Company (other than stocks with thirdparties) has been physically verified by the managementduring the year. In respect of inventory lying with thirdparties, these have substantially been confirmed by them.In our opinion the frequency of verification is reasonable.(b) In our opinion, the procedures of physical verification ofinventory followed by the management are reasonable andadequate in relation to the size of the Company and natureof its business.(c) On the basis of our examination of the inventory records, inour opinion, the Company has maintained proper records ofinventory. The discrepancies noticed on physical verificationof inventory as compared to book records, which were notmaterial, have been properly dealt with in the books ofaccount.3. The Company has neither granted nor taken any loans, securedor unsecured, to/from companies, firms or other parties coveredin the register maintained under Section 301 of the Act.4. In our opinion and according to the information and explanationsgiven to us, having regard to the explanation that certain itemspurchased are of special nature for which suitable alternativesources do not exist for obtaining comparative quotations, thereis an adequate internal control system commensurate withthe size of the Company and the nature of its business, for thepurchase of inventory, fixed assets and for the sale of goods andservices. Further, on the basis of our examination of the booksand records of the Company, and according to the informationand explanations given to us, we have neither come across norhave been informed of any continuing failure to correct majorweaknesses in the aforesaid internal control system.5. According to the information and explanations given to us, therehave been no contracts or arrangements during the year referredto in Section 301 of the Act, the particulars of which are requiredto be entered in the register maintained under that Section.Further, there have been no transactions made in pursuance ofsuch contracts and exceeding the value of rupees five lacs inrespect of any party during the year.6. In our opinion and according to the information and explanationsgiven to us, the Company has complied with the provisionsof Sections 58A and 58AA or any other relevant provisions ofthe Act and the Companies (Acceptance of Deposits) Rules,1975, as applicable, with regard to deposits accepted from thepublic. According to the information and explanations given tous, no order under the aforesaid sections has been passed bythe Company Law Board or National Company Law Tribunal orReserve Bank of India or any Court or any other Tribunal on theCompany in respect of the aforesaid deposits.7. In our opinion, the Company’s present internal audit system ( firmof chartered accountants has been appointed for the purpose)as conducted in a phased manner is commensurate with its sizeand nature of business.8. The Central Government of India has not prescribed themaintenance of cost records under clause (d) of sub-section(1) of Section 209 of the Act, for any of the products of theCompany.9 (a) According to the information and explanations given to usand records of the Company examined by us, in our opinion,the Company is regular in depositing during the year theundisputed statutory dues including Provident Fund, InvestorEducation and Protection Fund, Employees’ State Insurance,Income Tax, Sales Tax, Wealth Tax, Service Tax, CustomsDuty, Excise Duty, Cess and other material statutory dues,as applicable, with the appropriate authorities.(b) According to the information and explanations given to usand the records of the Company examined by us, as at 31stMarch, 2009, there were no dues in respect of CustomsDuty, Wealth Tax and Cess which have not been depositedon account of dispute other than certain disputed duesof Income Tax, Sales Tax, Service Tax and Excise Duty inrespect of which amounts involved and the forum at whichdispute is pending are set out below:Name of theStatuteThe Central SalesTax Act, 1956The Uttar PradeshTrade Tax Act,1948Nature ofDuesSales Tax dues forthe year 2003-04.Entry Tax duesfor thefinancial year2004-05.Amount(Rs. in lacs)[net ofpayments]9.866.42Forum where disputeis pendingThe JointCommissioner(Appeals), Ghaziabad,Uttar Pradesh.The JointCommissioner(Appeals), Ghaziabad,Uttar Pradesh.