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Transpek Industry Ltd.

BSE: 506687 Sector: Industrials
NSE: TRANSPEK ISIN Code: INE687A01016
BSE 16:01 | 27 Mar 2018 Transpek Industry Ltd
NSE 05:30 | 01 Jan 1970 Transpek Industry Ltd
OPEN 1239.00
PREVIOUS CLOSE 1237.35
VOLUME 933
52-Week high 1493.00
52-Week low 523.15
P/E 27.31
Mkt Cap.(Rs cr) 694
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1239.00
CLOSE 1237.35
VOLUME 933
52-Week high 1493.00
52-Week low 523.15
P/E 27.31
Mkt Cap.(Rs cr) 694
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Transpek Industry Ltd. (TRANSPEK) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of Transpek Industry Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Transpek IndustryLimited (‘The Company’) which comprises the balance sheet as at 31 March 2016the statement of profit and loss and the cash flow statement for the year then ended anda 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 Section134(5) of the Companies Act 2013 (“The Act”) with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement(s) whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the Accountingand Auditing Standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement(s).

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement(s)of the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 its profit and its 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 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

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 bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of accounts as required by law have been kept by theCompany 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 Statementdealt with by this Report are in agreement with the books of account;

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

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act ;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give in“Annexure B” our separate report;

(g) with respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 its financialposition in its financial statements Refer Note 28(A) (a) and (b) to the financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For CNK & Associates LLP

Chartered Accountants

FRN : 101961W

H. V. Kishnadwala

Partner

M. No. : 037391

Place : Vadodara

th

Date : 24 May 2016

Annexure A to the Independent Auditors’ Report

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2016.

On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets;

(b) As informed to us the company has a phased programme of physical verification ofits fixed assets so as to cover all assets once in three years. In accordance with thisprogramme fixed assets were verified during the year and the discrepancies noticed onsuch verification has been properly dealt with in books of accounts. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of thecompany and the nature of its assets;

(c) According to the Information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable properties areheld in the name of the Company;

(ii) (a) As per the information and explanations given to us the inventories held bythe company have been physically verified by the management. In our opinion having regardto the nature and location of stocks the frequency of the physical verification isreasonable;

(b) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventory and the discrepancies noticed onphysical verification of the same were not material in relation to the operations of theCompany and the same have been properly dealt with in the books of accounts;

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies Firms Limited Liability Partnershipor any other parties covered in the register maintained under section 189 of the Act.Hence clause 3(a) 3(b) and 3(c) are not applicable for the year;

(iv) In our opinion and according to the information and explanations given to us thecompany has during the year not given any loans investments guarantees and securitiesand therefore this clause is not applicable to the company;

(v) In our opinion and as explained to us the Company has complied with the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under for the deposits acceptedby the company;

(vi) We have broadly reviewed the cost records maintained by the Company as prescribedby the Central Government under sub section (1) of Section 148 of the Act and are of theopinion that prima facie the prescribed cost records have been made and maintained by thecompany. We have however not made a detailed examination of the cost records with a viewto determine whether they are accurate or complete;

(vii) (a) According to the information and explanations given to us and the recordsexamined by us the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employee’s state insuranceincome-tax sales-tax wealth-tax service tax custom duty excise-duty value added taxcess and other statutory dues and there are no undisputed statutory dues outstanding as at31st March 2016 for a period of more than six months from the date they became payable.We are informed that the provisions relating to employee’s state insurance are notapplicable to the company;

(b) According to the information and explanations given to us and the records examinedby us there are no dues of income tax sales tax wealth-tax service tax duty ofcustoms duty of excise value added tax or cess that has not been deposited on accountof disputes except the following:

Name of the Statute Nature of dues Amount ( Rs. In lacs) Period to which the amount relates Forum where dispute is pending
Gujarat Sales Tax Act 1969 Sales Tax 0.31 1999 - 00 Deputy Commissioner of Sales Tax Vadodara
Central Sales Tax Act 1956 Sales Tax 33.80 1999 - 00 Deputy Commissioner of Sales Tax Vadodara
Income Tax Act 1961 Income tax (including interest thereon) 17.18 2012 - 13 Commissioner of Income Tax(Appeals) Vadodara
Central Excise Act 1944 Excise duty (including penalty) 405.77 2002 to 2014 CESTAT Ahmedabad
Service tax Service tax (including penalty) 150.62 2008 to 2013 CESTAT Ahmedabad
Central Excise Act 1944 Custom duty (including penalty) 5.44 2012 - 13 CESTAT Mumbai
Central Excise Act 1944 Custom duty (including penalty) 20.20 2008 to 2010 Commissioner of Customs (Appeals) Mumbai

Note: Amounts paid under protest and not charged to profit and loss statement havenot been included above.

[Refer Note no. 28(A)(b) of Notes forming part of the financial statements]

(viii) Based on our audit procedure and according to the information and explanationgiven by the management we are of the opinion that the company has not defaulted inrepayment of dues to financial institutions or banks Government or dues to debentureholders;

(ix) According to the information and explanations given to us no moneys were raisedby way of initial public offer or further public offer (including debt instruments) and noterm loans were obtained during the year;

(x) During the course of our examination of the books of account and records of thecompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither came acrossany incidence of fraud on or by the company noticed or reported during the year nor wehave been informed of any such case by the management;

(xi) According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Act;

(xii) In our opinion and according to the information and explanation given to us theprovisions related to Nidhi Company are

not applicable;

(xiii) According to the information and explanations given to us all the transactionswith the related parties are in compliance

with section 177 and 188 of the Act where applicable and the details have beendisclosed in the Financial Statements as

required by the applicable accounting standards;

(xiv) According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review;

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non- cash transactions with directors or personsconnected with him and the provisions of section 192 of the Act have been complied with;

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For CNK & Associates LLP

Chartered Accountants

FRN : 101961W

H. V. Kishnadwala

Partner

M. No. : 037391

Place : Vadodara

Date : 24 May 2016

Annexure B to the Auditor’s Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of TRANSPEKINDUSTRY LMITED (“the Company”) as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For CNK & Associates LLP

Chartered Accountants

FRN : 101961W

H. V. Kishnadwala

Partner

M. No. : 037391

Place : Vadodara

th

Date : 24 May 2016