Mar 31, 2021
To the Members of Tata Steel Limited
Report on the audit of the Standalone financial statements
Opinion
1. We have audited the accompanying standalone financial statements of Tata Steel Limited ("the Company"), which comprise the balance sheet as at March 31, 2021, and the statement of Profit and Loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and total comprehensive income (comprising profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the
Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. We draw your attention to Note 6(vi) to the standalone financial statements which states that the ability of the Tata Steel Europe (TSE), the step-down subsidiary of T Steel Holdings Pte Ltd (TSH), a subsidiary of the Company, to continue as a going concern is dependent on the availability of future funding requirements, which could have a consequential impact on the carrying amount of investment of ?20,854.89 crore (net of provision for impairment amounting to ?860.00 crore) in TSH as at March 31, 2021.
Further, the auditors of TSE have, without modifying their opinion, reported a Material Uncertainty Related to Going Concern vide their report dated May 4, 2021 on the financial information of TSE for the year ended March 31, 2021.
Our opinion is not modified in respect of this matter.
Mar 31, 2019
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Financial Statements of Tata Steel Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and Notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, its total comprehensive income (comprising of profit and other comprehensive income), its changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial Statements of the current year. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How our audit addressed the Key Audit Matter |
Assessment of litigations and related disclosure of |
Our audit procedures included the following: |
contingent liabilities |
- We understood, assessed and tested the design and operating |
[Refer to Note 2 (c) to the Standalone Financial Statements- âUse |
effectiveness of key controls surrounding assessment of |
of estimates and critical accounting judgements - Provisions and |
litigations relating to the relevant laws and regulations; |
contingent liabilitiesâ; Note 36 (A) to the Standalone Financial Statements - âContingenciesâ and Note 37 to the Standalone Financial Statements - âOther significant litigationsâ] |
- We discussed with management the recent developments and |
the status of the material litigations which were reviewed and noted by the audit committee; |
|
As at March 31, 2019, the Company has exposures towards litigations relating to various matters as set out in the aforesaid Notes. |
- We performed our assessment on a test basis on the underlying |
calculations supporting the contingent liabilities/other |
|
significant litigations made in the Standalone |
|
Significant management judgement is required to assess such |
Financial Statements; |
matters to determine the probability of occurrence of material outflow of economic resources and whether a provision should |
- We used auditorâs experts to gain an understanding and to evaluate the disputed tax matters; |
be recognised, or a disclosure should be made. The management |
|
judgement is also supported with legal advice in certain cases as |
- We considered external legal opinions, where relevant, |
considered appropriate. |
obtained by management; |
As the ultimate outcome of the matters are uncertain and the |
- We met with the Companyâs external legal counsel to |
positions taken by the management are based on the application |
understand the interpretation of laws/regulations considered |
of their best judgement, related legal advice including those |
by the management in their assessment relating to a |
relating to interpretation of laws/regulations, it is considered to be |
material litigation; |
a Key Audit Matter. |
- We evaluated managementâs assessments by understanding precedents set in similar cases and assessed the reliability of the managementâs past estimates/judgements; - We evaluated managementâs assessment around those matters that are not disclosed or not considered as contingent liability, as the probability of material outflow is considered to be remote by the management; and - We assessed the adequacy of the Companyâs disclosures. Based on the above work performed, managementâs assessment in respect of litigations and related disclosures relating to contingent liabilities/other significant litigations in the Standalone Financial Statements are considered to be reasonable. |
Assessment of carrying value of equity investments in subsidiaries, associates and joint ventures and fair value of |
Our audit procedures included the following: |
other investments |
- We obtained an understanding from the management, assessed and tested the design and operating effectiveness of the |
[Refer to Note 2 (c) to the Standalone Financial Statements - âUse |
Companyâs key controls over the impairment assessment and |
of estimates and critical accounting judgements - Impairment and fair value measurements of financial instrumentsâ; Note 2 |
fair valuation of material investments. |
(m) to the Standalone Financial Statements - âInvestments in subsidiaries, associates and joint venturesââ Note 2(n)(I) to the |
- We evaluated the Companyâs process regarding impairment assessment and fair valuation by involving auditorâs valuation |
Standalone Financial Statements - âFinancial assetsââ Note 6 to the |
experts to assist in assessing the appropriateness of the valuation |
Standalone Financial Statements - âInvestments in subsidiaries, associates and joint venturesâ; Note 7 to the Standalone Financial |
model including the independent assessment of the underlying assumptions relating to discount rate, terminal value etc. |
Statements - âInvestmentsâ and Note 39 (b) to the Standalone |
- We assessed the carrying value/fair value calculations of |
Financial Statements - âFair value hierarchyâ] The Company has equity investments in various subsidiaries, |
all individually material investments, where applicable, to determine whether the valuations performed by the Company were within an acceptable range determined by us and the |
associates, joint ventures and other companies. It also has made investments in preference shares in certain subsidiaries/associates |
auditorâs valuation experts. |
and debentures in a joint venture. |
- We evaluated the cash flow forecasts (with underlying economic |
The Company accounts for equity investments in subsidiaries, associates and joint ventures at cost (subject to impairment |
growth rate) by comparing them to the approved budgets and our understanding of the internal and external factors. |
assessment) and other investments at fair value. For investments carried at cost where an indication of impairment exists, the carrying value of investment is assessed for impairment |
- We checked the mathematical accuracy of the impairment model and agreed relevant data back to the latest budgets, actual past results and other supporting documents. |
and where applicable an impairment provision is recognised, if |
- We assessed the Companyâs sensitivity analysis and evaluated |
required, to its recoverable amount. For investments carried at fair values, a fair valuation is done at the |
whether any reasonably foreseeable change in assumptions could lead to impairment or material change in fair valuation. |
year-end as required by Ind AS 109. In case of certain investments, |
- We discussed with the component auditors of certain entities |
cost is considered as an appropriate estimate of fair value since |
to develop an understanding of the operating performance |
there is a wide range of possible fair value measurements and |
and outlook used in their own valuation model and to assess |
cost represents the best estimate of fair value within that range as |
consistency with the assumptions used in the model. |
permitted under Ind AS 109. |
- We had discussions with management to obtain an |
The accounting for investments is a Key Audit Matter as the |
understanding of the relevant factors in respect of certain |
determination of recoverable value for impairment assessment/fair |
investments carried at fair value where a wide range of fair |
valuation involves significant management judgement. The impairment assessment and fair valuation for such investments have been done by the management in accordance |
values were possible due to various factors such as absence of recent observable transactions, restrictions on transfer of shares, existence of multiple valuation techniques, investeeâs |
with Ind AS 36 and Ind AS 113 respectively. |
varied nature of portfolio of investments for which significant estimates/judgements are required to arrive at fair value. |
The key inputs and judgements involved in the impairment/fair valuation assessment of unquoted investments include: |
- We evaluated the adequacy of the disclosures made in the Standalone Financial Statements. |
- Forecast cash flows including assumptions on growth rates |
Based on the above procedures performed, we did not identify |
- Discount rates |
any significant exceptions in the managementâs assessment in |
- Terminal growth rate Economic and entity specific factors are incorporated in valuation used in the impairment assessment. |
relation to the carrying value of equity investments in subsidiaries, associates and joint ventures and fair value of other investments. |
Other Information
5. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information in the Integrated Report, Boardâs Report alongwith its Annexures and Financial Highlights included in the Companyâs Annual Report (titled as âTata Steel Integrated Report & Annual Accounts 2018-19â), but does not include the financial statements and our auditorâs report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
6. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity 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. 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 judgements 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the Standalone Financial Statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
9. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current year and are therefore the Key Audit Matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
13. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. 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 it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows 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.
(e) On the basis of the written representations received from the directors taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorâs 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 as on March 31, 2019 on its financial position in its Standalone Financial Statements - Refer Notes 36 (A) and 37 to the Standalone Financial Statements.
ii. The Company has long-term contracts including derivative contracts as on March 31, 2019 for which there were no material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2019 except for amounts aggregating to Rs.5.21 crore, which according to the information and explanations provided by the management is held in abeyance due to dispute/pending legal cases.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2019.
Referred to in paragraph 14(f) of the Independent Auditorâs Report of even date to the members of Tata Steel Limited on the Standalone Financial Statements as of and for the year ended March 31, 2019
Report on the Internal Financial Controls with reference to Standalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls with reference to Standalone Financial Statements of Tata Steel Limited (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to Standalone Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Standalone Financial Statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to Standalone Financial Statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A companyâs internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to Standalone Financial Statements and such internal financial controls with reference to Standalone Financial Statements were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 13 of the Independent Auditorâs Report of even date to the members of Tata Steel Limited on the Standalone Financial Statements as of and for the year ended March 31, 2019
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us, the title deeds of immovable properties, as disclosed in Note 3 on property, plant and equipment to the Standalone Financial Statements, are held in the name of the Company, except for the following:
(i) title deeds of freehold land with gross and net carrying amount of Rs.60.44 crore and title deeds of buildings with gross carrying amount and net carrying amount of Rs.83.48 crore and Rs.74.49 crore respectively, which are held in the name of erstwhile companies which have subsequently been amalgamated with the Company;
(ii) title deeds of freehold land with gross and net carrying amount of Rs.202.67 crore and title deeds of buildings with gross carrying amount and net carrying amount of Rs.95.62 crore and Rs.76.91 crore respectively, which are not readily available.
ii. The physical verification of inventory (excluding stocks with third parties) have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In respect of inventories of stores and spares, the Management has a verification programme designed to cover the items over a period of three years. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has granted unsecured loans, to eleven companies covered in the register maintained under Section 189 of the Act. The Company has not granted any loans, secured or unsecured, to firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest except for two inter corporate loans aggregating Rs.0.52 crore granted to two joint venture companies during the year ended March 31, 2019, with a maximum amount of Rs.1.12 crore from the aforesaid joint venture companies outstanding during the year. These companies are under liquidation, and are therefore in our opinion prejudicial to the Companyâs interests.
(b) In respect of the aforesaid loans, the schedule of repayment of principal and payment of interest has been stipulated by the Company. Except for amounts aggregating Rs.670.10 crore outstanding as at March 31, 2019 towards principal and interest from four subsidiary companies and two joint venture companies, the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.
(c) In respect of the aforesaid loans, the total amount overdue for more than ninety days as at March 31, 2019 is Rs.640.58 crore outstanding from three subsidiary companies and a joint venture company. In such instances, in our opinion, reasonable steps, as applicable, have been taken by the Company for the recovery of the principal amounts and interest.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act in respect of the loans and investments made, and guarantees and security provided by it, as applicable.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75 and 76 or any other relevant provisions of the Act and the Rules framed thereunder to the extent notified, with regard to the unclaimed deposits accepted from the public, as applicable. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, 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) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, income tax, goods and service tax, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including employeesâ state insurance, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, and other material statutory dues, as applicable, with the appropriate authorities, other than arrear dues outstanding for a period of more than six months as at March 31, 2019 in respect of pension set out below. We are informed that the Company has applied for exemption from operations of Employeesâ State Insurance Act at some locations. We are also informed that actions taken by the authorities at some locations to bring the employees of the Company under the Employeesâ State Insurance Scheme has been contested by the Company and payment has not been made of the contributions demanded. The extent of the arrears of statutory dues outstanding as at March 31, 2019, for a period of more than six months from the date they became payable are as follows:
Name of the |
Nature of |
Amount |
Period to which the |
Date of |
statute |
dues |
(Rs. crore) |
amount relates |
payment |
Coal Mines |
Pension |
29.43 |
OctRs.17 to SeptRs.18 |
April 23, |
Pension |
2019* |
|||
Scheme, 1998 |
*Writ petition filed with High Court of Jharkhand subsequent to the balance sheet date on April 24, 2019.
Also refer Note 42 to the Standalone Financial Statements regarding managementâs assessment on certain matters relating to provident fund.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of goods and service tax as at March 31, 2019 which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax as at March 31, 2019, which have not been deposited on account of a dispute, are as follows:
Name of the Statute |
Nature of dues |
Amount |
Amount paid |
Period to which the |
Forum where the |
(net of payments) |
(Rs. crore) |
amount relates |
dispute is pending |
||
(Rs. crore) |
|||||
Income- tax Act, 1961 |
Income Tax |
1,427.24* |
965.00* |
1998-1999, 2006-2008, 2009-2012, 2013-2014 |
Tribunal |
235.82 |
100.00 |
2010-2011, 2014-2015 |
Commissioner (Appeals) |
||
Customs Act,1962 |
Customs Duty |
3.95 |
0.07 |
2002-2003 |
High Court |
79.67 |
50.00 |
2005-2008 |
Commissioner |
||
Central Excise Act,1944 |
Excise Duty |
33.23 |
0.10 |
1988-1990, 2003-2009 |
High Court |
1,132.71 |
57.85 |
1990-1991, 1992-1997, 1998-2017 |
Tribunal |
||
170.30 |
111.63 |
1988-1990, 1994-2002, 2003-2004, 2005-2017 |
Commissioner |
||
0.03 |
0.01 |
1998-1999 |
Joint Commissioner |
||
0.18 |
- |
1985-1987, 1998-1999 |
Deputy Commissioner |
||
0.85 |
- |
1983-1985 |
Assistant Commissioner |
||
Sales Tax Laws |
Sales Tax |
33.90 |
19.22 |
1983-1984, 1991-1997, 2000-2004, 2008-2009 |
High Court |
71.78 |
6.19 |
1977-1978, 1980-1981, 1983-1985, 1987-1988, 1989-1999, 2000-2002, 2003-2005, 2009-2011, 2013-2017 |
Tribunal |
||
247.17 |
7.06 |
1988-1990, 1991-1992, 1993-1994, 2001-2004, 2006-2007, 2008-2009, 2010-2012, 2013-2015 |
Commissioner |
||
1.91 |
- |
2011-12 |
Joint Commissioner |
||
28.18 |
2.47 |
2002-2003, 2006-2010, 2012-2015 |
Additional Commissioner |
||
63.97 |
3.01 |
1975-1976, 1983-1988, 1994-1995, 1997-2009, 2013-2016 |
Deputy Commissioner |
||
61.77 |
3.40 |
1973-1974, 1980-1997, 2004-2005, 2008-2009, 2012-2013, 2015-2016 |
Assistant Commissioner |
||
Value Added Tax Laws |
Value Added Tax |
252.84 |
1.07 |
1994-1996, 2007-2008, 2012-2016 |
High Court |
19.06 |
1.72 |
2005-2011, 2012-2016 |
Tribunal |
||
273.75 |
0.89 |
2006-2015, 2016-2017 |
Commissioner |
||
72.89 |
8.10 |
2010-2017 |
Joint Commissioner |
||
2.61 |
0.47 |
2005-2006, 2012-2015 |
Additional Commissioner |
||
165.39 |
3.72 |
2005-2011, 2012-2016 |
Deputy Commissioner |
||
1.63 |
0.06 |
1997-1998, 2005-2006, 2015-2017 |
Assistant Commissioner |
*excluding net excess payments/adjustments for the year 2008-2009 aggregating Rs.123.21 crore.
Name of the Statute |
Nature of dues |
Amount (net of payments) (Rs. crore) |
Amount paid (Rs.crore) |
Period to which the amount relates |
Forum where the dispute is pending |
Finance Act,1994 |
Service Tax |
1,286.52 |
23.34 |
2004-2016 |
Tribunal |
5.98 |
0.13 |
2005-2013, 2014-2017 |
Commissioner |
||
0.97 |
- |
2009-2010 |
Deputy Commissioner |
The following matters have been decided in favour of the Company although the department has preferred appeal at higher levels:
Name of the Statute |
Nature of dues |
Amount |
Period to which the |
Forum where the |
(net of payments) |
amount relates |
dispute is pending |
||
(Rs. crore) |
||||
Central Excise Act,1944 |
Excise Duty |
235.48 |
2004-2005 |
Supreme Court |
16.98 |
2009-2010, 2013-2014 |
Tribunal |
viii. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders, as applicable, as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer. In our opinion, and according to the information and explanations given to us, the moneys raised by way of further public offer (including debt instruments) and term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of related party transactions have been disclosed in the Standalone Financial Statements as required under Indian Accounting Standard 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
Russell I Parera
Place: Mumbai Partner
Date: April 25, 2019 Membership Number 042190
Mar 31, 2018
Independent Auditor''s Report
TO THE MEMBERS OF TATA STEEL LIMITED Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Tata Steel Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018 the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The standalone Ind AS financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 16, 2017, expressed an unmodified opinion on those financial statements. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act ("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 explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) I n our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule n of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements â Refer Notes 36 and 37 to the standalone Ind AS financial statements;
ii. The Company has long-term contracts including derivative contracts as at March 31, 2018, for which there were no material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018 except for amounts aggregating to ''4.62 crores, which according to the information and explanations provided by the Management is held in abeyance due to dispute / pending legal cases.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Referred to in paragraph 11(f) of the Independent Auditors'' Report of even date to the members of Tata Steel Limited on the standalone Ind AS financial statements for the year ended March 31, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Tata Steel Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. I n our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Referred to in paragraph 10 of the Independent Auditors''
Report of even date to the members of Tata Steel Limited on the standalone Ind AS financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us, the title deeds of immovable properties are held in the name of the Company, except for the following:
(i) title deeds to freehold land with gross carrying amount and net carrying amount of ''60.44 crore and ''60.44 crore respectively, which are held in the name of erstwhile companies which have subsequently been amalgamated with the Company;
(ii) title deeds to buildings with gross carrying amount and net carrying amount of Rs,83.48 crores and Rs,76.73 crores respectively, which are held in the name of erstwhile companies which have subsequently been amalgamated with the Company.
(iii) title deeds to freehold land with gross carrying amount and net carrying amount of Rs,202.67 crores and Rs,202.67 crores respectively, which were not readily available.
(iv) title deeds to buildings with gross carrying amount and net carrying amount of Rs,95.62 crores and Rs,81.59 crores respectively, which were not readily available.
ii. The physical verification of inventory (excluding stocks with third parties) have been conducted at reasonable intervals by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In respect of inventories of stores and spares, the management has a verification programme designed to cover all the items over a period of three years. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has granted secured/unsecured loans, to companies covered in the register maintained under Section 189 of the Act. The Company has not granted any secured / unsecured loans to any other party, as applicable, covered in the register maintained under Section 189 of the Companies Act,
2013.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Company''s interest except for two inter corporate deposits made during the year aggregating to Rs,7.60 crores, placed with a subsidiary company and a joint venture company. Maximum amount outstanding during the year was Rs,67.00 crores and Rs,0.60 crores from the aforesaid subsidiary company and joint venture company respectively. As these companies are not going concerns, therefore in our opinion these deposits are prejudicial to the Company''s interests.
(b) In respect of the aforesaid loans, the schedule of repayment of principal and payment of interest has been stipulated by the Company. Except for amounts aggregating Rs,760.12 crores outstanding towards principal and interest from six subsidiary companies and two joint venture companies, the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.
(c) In respect of the aforesaid loans, the total amount overdue towards principal and interest for more than ninety days as at March 31, 2018 is Rs,648.28 crores. In such instances, in our opinion, reasonable steps have been taken by the Company for the recovery of the principal amounts and interest thereon.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security, as applicable, provided by it.
v. According to the information and explanations given to us, the Company has not accepted any deposit during the year. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75 and 76 or any other relevant provisions of the Act and the Rules framed thereunder to the extent notified, with regard to unclaimed deposits, as applicable. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the opinion that, prima facie, 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) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing 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, goods and service tax with effect from July 1, 2017and other material statutory dues, as applicable, with the appropriate authorities, other than arrear dues outstanding for more than six months as at March 31, 2018 set out below. We are informed that the Company has applied for exemption from operations of Employees'' State Insurance Act at some locations. We are also informed that actions taken by the authorities at some locations to bring the employees of the Company under the Employees âState Insurance Scheme has been contested by the Company and payment has not been made of the contributions demanded.
The extent of the arrears of statutory dues outstanding as at March 31, 2018, for a period of more than six months from the date they became payable are as follows:
Name of the statute |
Nature of dues |
Amount (Rs, in crores) |
Central Excise Act, 1944 |
Excise Duty |
0.14 |
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of goods and service tax as at March 31, 2018 which have not been deposited on account of any dispute and the particulars of dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and service tax as at March 31,2018 which have not been deposited on account of a dispute, are as follows:
Name of Statute |
Nature of dues |
Amount (net of payments) (Rs,crore) |
Amounts paid (Rs,crore) |
Period for which dispute relates to |
Forum where Dispute is pending |
Income-tax Act, 1961 |
Income-tax |
395.31* |
580.28* |
1998-1999, 2006-2007, 2007-2008, 2009-2010, 2010-2011 |
Tribunal |
0.67 |
- |
2010-2011 |
Income-tax Officer |
||
Customs Act, 1962 |
Customs Duty |
79.67 |
50.00 |
2005-2008 |
Commissioner |
3.95 |
0.07 |
2002-2003 |
High Court |
||
Central Excise Act,1944 |
Excise Duty |
0.85 |
- |
1983-1985 |
Assistant Commissioner |
246.13 |
111.47 |
1989-1990, 1994-2002, 2003-04, 2005-2017 |
Commissioner |
||
0.18 |
- |
1985-1987, 1998-1999 |
Deputy Commissioner |
||
34.66 |
0.10 |
1988-1990, 2003-2009 |
High Court |
||
0.03 |
0.01 |
1998-1999 |
Joint Commissioner |
||
691.45 |
45.76 |
1990-1991, 1992-1997, 1998-2015, 2016-17 |
Tribunal |
||
Sales Tax Laws |
Sales Tax |
26.07 |
11.30 |
1973-1974, 1977-1979, 1983-1984, 1991-1997, 2000-2002, 2008-2009 |
High Court |
57.91 |
3.97 |
1977-1978, 1980-1981, 1983-1985, 1987-1988, 1989-1999, 2000-2001, 2003-2005, 2009-2012, 2013-2015, 2016-2017 |
Tribunal |
||
325.03 |
18.12 |
1988-1990, 1991-1992, 1993-1994, 2001-2005, 2006-2014 |
Commissioner |
||
0.03 |
0.03 |
2001-2002 |
Joint Commissioner |
||
164.03 |
2.31 |
1975-1976, 1983-1988, 1994-1995, 1997-2006, 2007-2009, 2013-2015 |
Deputy Commissioner |
||
28.15 |
2.47 |
2002-2003, 2012-2015 |
Additional Commissioner |
||
8.79 |
2.67 |
1973-1974, 1980-1993, 1994-1997, 2001-2002, 2003-2005, 2008-2009 |
Assistant Commissioner |
||
Value Added Tax Laws |
Value Added Tax |
252.84 |
1.07 |
1994-1996, 2007-2008, 2012-2016 |
High Court |
21.30 |
3.30 |
2005-2011, 2012-2015 |
Tribunal |
||
103.93 |
1.21 |
2005-2015, 2016-2017 |
Commissioner |
||
119.56 |
4.60 |
2010-2011, 2012-2014 |
Joint Commissioner |
||
15.48 |
1.71 |
2005-2011, 2014-2015 |
Deputy Commissioner |
||
0.89 |
0.05 |
2012-2015 |
Additional Commissioner |
||
0.12 |
0.06 |
2005-2006, 2008-2009, 2013-2014, 2016-2017 |
Assistant Commissioner |
||
Finance Act, 1994 |
Service Tax |
0.04 |
0.001 |
2013-2014, 2015-2016 |
Assistant Commissioner |
5.56 |
0.12 |
2004-2018 |
Commissioner |
||
0.97 |
- |
2009-2010 |
Deputy Commissioner |
||
1,291.87 |
10.17 |
2004-2017 |
Tribunal |
*excluding net excess payments/adjustments for the years 2008-2009, 2011-2012 and 2012-2013 aggregating Rs, 282.86 crores.
The following matter has been decided in favour of the Company although the department has preferred appeal at higher levels:
Name of Statute |
Nature of dues |
Amount |
Period for which |
Forum where Dispute |
(net of payments) |
dispute relates to |
is pending |
||
(Rs,crore) |
||||
Central Excise Act,1944 |
Excise Duty |
235.48 |
2004-2005 |
Supreme Court |
0.64 |
2013-2014 |
Tribunal |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders, as applicable, as at the balance sheet date.
ix. I n our opinion and according to the explanations given to us, money raised by way of further public offer (rights issue) during the year and the term loans have been applied for the purposes for which they were obtained. Out of the total money received by way of rights issue during the year, amounts aggregating Rs, 2614.29 crores are lying in cash and cash equivalents as at year end, pending eventual utilisation for specific purposes as per the terms and conditions of the rights issue.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
xi. The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone Ind AS financial statements as required under Indian Accounting Standard 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009.
Chartered Accountants
Russell I Parera
Mumbai Partner
May 16, 2018 Membership Number 042190
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of TATA STEEL LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
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; 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 thereunder.
We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS 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 the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 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 including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) 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 âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 its financial position in its standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on longterm contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deeds, transfer deeds, mutation of title papers, property tax papers and conveyance deeds provided to us, we report that the title deeds, comprising all the immovable properties in respect of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date, except the following:
i. in respect to freehold land fair value at deemed cost amounting to Rs.60.16 crore (purchase cost Rs.0.34 crore) the title deeds of which are held in the name of erstwhile companies which have subsequently been amalgamated with the Company;
ii. title deeds to freehold land fair value at deemed cost amounting to Rs.1.87 crore (purchase price Rs.0.03 crore) which has not been executed.
iii. title deeds to freehold land fair value at deemed cost amounting to Rs.117.68 crore (purchase cost Rs.6.74 crore) were not readily available.
iv. title deeds to buildings with gross carrying amount and net carrying amount of Rs.0.61 crore and Rs.0.57 crore respectively were not readily available.
(ii) As explained to us, inventories of finished and semi-finished goods and raw materials at Works, Mines and Collieries were physically verified during the year by the Management. In respect of inventories of stores and spare parts and stocks at stockyards and with consignment/conversion agents, the Company has a programme of verification of stocks over a three year period. In case of materials lying with third parties, certificates for stocks held have been received. In our opinion and according to the information and explanations given to us, the inventories have been verified by the management at reasonable intervals in relation to size of the Company and nature of business and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest except an intercorporate deposit of Rs.21.37 crore placed with a subsidiary company which is not a going concern.
(b) The schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and interest have been regular as per stipulations except for loans and interest amounting to Rs.539.73 crore representing due from a subsidiary company and interest amounting to Rs.13.11 crore representing due from three subsidiary companies.
(c) Amounts referred to (b) above have been overdue for more than 90 days and, as explained to us, the Management has taken reasonable steps for recovery of the principal amounts and interest thereon.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and The Cost Accounting Records (Electricity Industry) Rules, 2011 prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) 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, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. We are informed that the Company intends to obtain exemption from operations of Employeesâ State Insurance Act at some locations and necessary steps have been taken by the Company. We are also informed that actions taken by the authorities at some locations to bring the employees of the Company under the Employeesâ State Insurance Scheme has been contested by the Company and full payment has not been made of the contributions demanded.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2017 for a period of more than six months from the date they became payable, except for the following:
Name of Statute |
Nature of Dues |
Amount (Rs. crore) |
Period to which the Amount Relates |
Due Date |
Date of subsequent payment |
MMDR |
Contribution to District Mineral Foundation and interest thereon |
295.81 |
JanRs.15-SepRs.16 |
SeptRs.16 |
Outstanding |
JVAT |
JVAT |
2.18 |
2015-2017 |
SeptRs.16 |
Outstanding |
Sales Tax Act |
Sales Tax |
2.07 |
2013-2014 |
SeptRs.16 |
Outstanding |
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax which have not been deposited as on March 31, 2017 on account of disputes are given below:
Name of the Statute (Nature of Dues) |
Forum where Dispute is pending |
Period to which the amount relates |
Amount (net of payments) (Rs.crore) |
Amounts paid under Protest (Rs.crore) |
Income Tax |
CIT(A)/ITAT |
2004-05, 2006-07 to 2009-10 |
368.81 |
1,047.72 |
Income Tax Officer |
2010-11 |
0.67 |
- |
|
Customs Act |
High Court |
2002-03 |
0.03 |
0.07 |
Commissioner |
1993-94 & 2006-2008 |
83.59 |
50.00 |
|
Supreme Court |
2004-05 |
235.48 |
- |
|
High Court |
1988-90, 2000-01 & 2003-06 |
14.54 |
0.10 |
|
Central Excise Act |
Tribunal |
1990-91, 1992-94, 1996-97 & 1998-99 to 2015-16 |
1,008.70 |
43.36 |
Commissioner |
1988-90, 1994-2017 |
55.75 |
4.20 |
|
Deputy Commissioner |
1985-87 & 1998-99 |
0.18 |
- |
|
Assistant Commissioner |
1982-2006, 2013-14 |
0.87 |
0.00 |
|
High Court |
1973-74, 1977-79, 1983-84, 1991-97, 2000-02, 2003-04, 2007-09, 2012-2017 |
280.04 |
16.13 |
|
Tribunal |
1980-81, 1983-85, 1987-99, 2001-2011 & 2012-2014 |
72.48 |
6.32 |
|
Sales Tax |
Commissioner |
1988-90, 1991- 92, 1993-94, 2000-01 to 2014-15 & 2016-2017 |
483.44 |
5.86 |
Deputy Commissioner |
1975-76, 1977-78, 1983-88 & 1993-94 to 2011-12 & 2013-14 |
32.27 |
3.01 |
|
Assistant Commissioner |
1973-74, 1980-81, 1983-84 to 1996-97, 2000-01 to 2005-06, 2008-09, 2013-2014, 2014-15 & 2016-2017 |
11.55 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, term loans taken have been applied by the Company during the year for the purposes for which they were raised, other than temporary deployment pending application of proceeds.
(x) 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.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate Company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firmâs Registration No. 117366W/W-100018)
N.Venkatram
(Partner)
(Membership No. 71387)
Mumbai, May 16, 2017
Mar 31, 2015
We have audited the accompanying standalone financial statements of
TATA STEEL LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, 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 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 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 thereunder.
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 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 true
and fair view 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
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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 audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March, 2015, and 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, 2015 ("the
Order"), issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 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 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) I n 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) On the basis of the written representations received from the
directors as on March 31,2015, and taken on record by the Board of
Directors, 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 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:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 32 to 37 to
the standalone financial statements;
ii. The Company has made provisions as required under the applicable
law or accounting, standards, for material foreseeable losses if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us no material
discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verified during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with consignment/ conversion
agents, the Company has a programme of verification of stocks over a
three year period. In our opinion, having regard to the nature and
location of the stocks, the frequency of verification is reasonable. In
case of materials lying with third parties, certificates for stocks
held have been received.
(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 its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73 to76 or any other relevant provisions of the Companies Act, 2013 and
the Companies (Acceptance of Deposits) Rules, 2014, as amended, with
regard to the deposits accepted. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended and The Cost Accounting Records (Electricity Industry)
Rules, 2011 prescribed by the Central Government under sub - section
(1) of Section 148 of the Companies Act, 2013, and are of the opinion
that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
(vii) 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, Income-tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and
other material statutory dues applicable to it with the appropriate
authorities. We are informed that the Company intends to obtain
exemption from operations of Employees'' State Insurance Act at some
locations and necessary steps have been taken by the Company. We are
also informed that actions taken by the authorities at some locations
to bring the employees of the Company under the Employees'' State
Insurance Scheme has been contested by the Company and full payment has
not been made of the contributions demanded.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31,2015 for a period of
more than six months from the date they became payable, except for
collection of sales tax which we are informed are refundable to
customers because they have been collected in excess or which have been
collected pending receipt of necessary certificates from the customers.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31,2015 on account of disputes are given below:
Name of the Statute Forum where Dispute is
(Nature of Dues) pending
CIT(A)/ITAT
Income Tax
Income Tax Officer
Supreme Court
Customs Act High Court
Commissioner
Supreme Court
High Court
Tribunal
Central Excise Act
Commissioner
Deputy Commissioner
Assistant Commissioner
Supreme Court
High Court
Tribunal
Sales Tax Commissioner
Deputy Commissioner
Assistant Commissioner
Cess on royalty, High Court
education, welfare etc.
Name of the Statute Period to which the Amount involved
(Nature of Dues ) amount relates (Rs. In crores)
Income Tax 2004-05,2006-07 1,533 75
to 2009-2010
2010-11 0.67
1990-91 & 1993-94 9.68
Custom Act 2002-03 0.03
1993-94 & 2014-15 83.59
2004-05 235.48
1988-90,2000-01 & 2003-06 92.55
Central Excise Act 1990-91,1992-94, 1996-97 & 959.54
1998-99 to 2014-15
1988-90, 1994-95 to 2003-04 &
2005-06 to 2014-15 43.51
1985-87 & 1998-99 0.18
1983-2006 0.85
Sales Tax 2000-03 & 2008-15 55.24
1973-74, 1977-79, 1983-84,1991-98
1999-2004,2007-10 & 2012-15 23l.90
1980-81,1983-85,1989-99,2001-12 78.43
1988-90, 1991-92,1993-94,2000-2015 391.81
1975-76, 1977-78, 1983-88 & 1993-94
to 2011- 12 5.5
1973-74, 1980-81,1983-84 to 1996-97,
2000-01 to 2005-06 & 2008-09 9.14
Cess on royalty 1956-94 7.66
education, welfare etc.
(d) The Company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made thereunder within time.
(viii) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xii) 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 LLP
Chartered Accountants
(Firm''s Registration No.117366W/ W-100018)
(N. VENKATRAM)
(Partner)
(Membership No. 71387)
Mumbai, May 20, 2015
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of TATA STEEL
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for 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 Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, 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 audit opinion.
Opinion
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(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 comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on March 31, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) Having regard to the nature of the Company''s
business/activities/results during the year, clauses (xii), (xiii),
(xiv), (xviii) and (xx) of paragraph 4 of the Order are not applicable
to the Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According to
the information and explanations 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 inventory:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verified during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with consignment/conversion
agents, the Company has a programme of verification of stocks over a
three year period. In our opinion, having regard to the nature and
location of the stocks, the frequency of verification is reasonable. In
case of materials lying with third parties, certificates for stocks held
have been received.
(b) In our opinion and according to the information and explanation
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 its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered 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 are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of 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 Section
301 that needed 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, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
(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
and The Cost Accounting Records (Electricity Industry) 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 made and maintained. We have,
however, not made a detailed examination of the cost records with a
view to determining 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, 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. We are informed that
the Company intends to obtain exemption from operations of Employees''
State Insurance Act at some locations and necessary steps have been
taken by the Company. We are also informed that actions taken by the
authorities at some locations to bring the employees of the Company
under the Employees'' State Insurance Scheme has been contested by the
Company and full payment has not been made of the contributions
demanded.
(b) There were no undisputed amounts payable in respect of 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 March 31, 2014 for a period of more than six months from the date
they became payable, except for collection of sales tax which we are
informed are refundable to customers because they have been collected
in excess or which have been collected pending receipt of necessary
certificates from the customers.
Name of the
Statute Forum where Dispute is Amount
involved
Period to which the
amount relates
(Nature of
Dues) pending (Rs. In
crores)
Supreme Court 2008-09 to 2013-14 2.84
1973-74, 1977-78,
1978-79, 1983-84,
High Court 1991-92 to 1997-98,
1999-2000 to
2003-04, 153.33
2007-08, 2009-10 &
2012-13, 2013-14
1980-81, 1983-84,
1984-85, 1989-99,
Tribunal 66.40
2001-02 & 2003-04
to 2010-11
Sales Tax 1988-89, 1989-90,
1993- 94,
Commissioner 267.06
2000-01 to 2011-12
& 2013-14
Deputy Commissioner 1983-84 to 1987-88
& 1993-94 to
2011-12 46.19
1973-74, 1980-81,
1983-84 to 1996-97,
Assistant
Commissioner 18.37
2000-01 to 2006-07,
2008-09, 2009-10 &
2011-12
Cess on
royalty,
education, High Court 1956-94 7.66
welfare etc.
(xi) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(xiii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
(xvi) According to the information and explanations given to us, during
the period covered by our audit report, the Company did not issue
debentures.
(xvii) 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 LLP
Chartered Accountants
(Firm''s Registration No.117366W/ W-100018)
N. VENKATRAM
Partner
(Membership No. 71387)
Mumbai, May 14, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TATA STEEL
LIMITED ("the Company"), which comprise the Balance Sheet as at 31
March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for 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 Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, 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 audit opinion.
Opinion
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(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 comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31 March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) Having regard to the nature of the Company''s
business/activities/results during the year, clauses (x), (xii), (xiii)
and (xiv) of paragraph 4 of the Order are not applicable to the
Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of three years which, in
our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations 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 inventory:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verified during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with consignment/conversion
agents, the Company has a programme of verification of stocks over a
three year period. In our opinion, having regard to the nature and
location of the stocks, the frequency of verification is reasonable. In
case of materials lying with third parties, certificates for stocks
held have been received.
(b) In our opinion and according to the information and explanation
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 its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered 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 are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of 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 Section
301 that needed 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. five lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
(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
determining 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, 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. We are informed that
the Company intends to obtain exemption from operations of Employees''
State Insurance Act at all locations and necessary steps have been
taken by the Company. We are also informed that actions taken by the
authorities at some locations to bring the employees of the Company
under the Employees'' State Insurance Scheme has been contested by the
Company and full payment has not been made of the contributions
demanded.
(b) There were no undisputed amounts payable in respect of 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 31 March, 2013 for a period of more than six months from the date
they became payable, except for collection of sales tax which we are
informed are refundable to customers because they have been collected
in excess or which have been collected pending receipt of necessary
certificates from the customers.
(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
31 March, 2013 on account of disputes are given below:
Name of the
Statute Forum where
Dispute Period to which
the amount relates Amount
involved
(Nature of
Dues) is pending (Rs. In
crores)
Supreme Court 1990-91 & 1993-94 9.68
Customs Act High Court 2002-03 0.03
Commissioner 1993-94 3.92
Supreme Court 2004-05 235.48
1988-89, 1989-90, 2000-01 & 14.54
High Court 2003-04 to 2008-09
1990-91, 1992-93, 1996-97 & 755.32
Central
Excise Act Tribunal 1998-99 to 2012-13
Commissioner 1988-89, 1989-90 & 1993-94
to 2012-13 14.17
Deputy
Commissioner 1985-86, 1986-87 & 1998-99 0.18
Assistant
Commissioner 1983-84 to 2005-06 0.85
Supreme Court 2006-07 to 2011-12 25.59
1973-74, 1991-92, 1992-93,
1994-95, 119.31
High Court 1996-97, 1999-2000 to
2005-06, 2007-08 to 2009-10
& 2012-13
1980-81, 1981-82, 1984-85,
1987-88, 71.97
Tribunal 1989-90, 1995-96 & 1997-98
to 2011-12
Sales Tax 1983-84, 1984-85, 1988-89 to 248.58
Commissioner
1998-99 & 2008-09 to 2011-12
1983-84, 1984-85, 1988-89
to 1998-99 116.94
Deputy
Commissioner & 2008-09 to 2011-12
1973-74, 1980-81,1983-84
to 1997-98, 26.85
Assistant
Commissioner 1998-99 & 2000-01 to 2011-12
Cess on
royalty, 1956-57 to 1993-94, 1999-2000 to 7.66
education,
welfare High Court 2001-02, 2003-04 to 2005-06 &
2007-08
etc. to 2012-13
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xiv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long- term investment.
(xv) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
(xvi) According to the information and explanations given to us, during
the period covered by our audit report, the Company had issued
unsecured debentures which did not require creation of any charge or
security.
(xvii) The Management has disclosed the end use of money raised by
public issue in Note 2 to the financial statements and we have verified
the same.
(xviii) 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
(Firm Registration No.117366W)
N. VENKATRAM
Partner
(Membership No. 71387)
Mumbai, 23 May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of TATA STEEL LIMITED
("the Company") as at 31 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 firee 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 that:
(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 financial statements 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 31 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 and taken on record by the Board of Directors, none of the
Directors is disqualified as on 31 March, 2012 from being appointed as a
director in terms of Section 274(1)(g) of the Companies Act, 1956.
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/result, clauses (x), (xii), (xiii) and (xiv) of
CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) Some of the fixed assets were physically verifed during the year by
the Management in accordance with a regular programme of verifcation
which, in our opinion, provides for physical verifcation of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verifcation.
(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 inventory:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verifed during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with consignment/conversion
agents, the Company has a programme of verifcation of stocks over a
three year period. In our opinion, having regard to the nature and
location of the stocks, the firequency of verifcation is reasonable. In
case of materials lying with third parties, Certificates confirming
stocks have been received for stocks held.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verifcation 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 its
inventories and no material discrepancies were noticed on physical
verifcation.
(iv) In respect of loans, secured or unsecured, granted by the Company
to companies, frms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
(a) The Company has granted loans aggregating Rs.167.22 crores to one
party during the year. At the year-end, there is no balance outstanding
and the maximum amount involved during the year was Rs. 3,720.38
crores.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(c) The receipts of principal amounts and interest have been regular/as
per stipulations.
(d) There were no loans outstanding as at the year-end, and therefore
clause (iii) (d) of paragraph 4 of CARO is not applicable.
The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956. Accordingly, clauses
(iii) (e) to (iii) (g) of paragraph 4 of CARO are not applicable.
(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 are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of 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 Section
301 that needed 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, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
(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 records with a view to determining
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
dues, including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities. We are informed that the Company intends to
obtain exemption from operations of Employees' State Insurance Act at
all locations and necessary steps have been taken by the Company. We
are also informed that actions taken by the authorities at some
locations to bring the employees of the Company under the Employees'
State Insurance Scheme has been contested by the Company and full
payment has not been made of the contributions demanded.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31 March, 2012 for a period of more than six
months from the date they became payable, except for collection of
sales tax which we are informed are refundable to customers because
they have been collected in excess or which have been collected pending
receipt of necessary Certificates from the customers.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31 March, 2012 on account of disputes are given below:
Name of the
Statute Forum where
Dispute Period to which the
amount relates Amount
(Nature of
dues) is pending involved
(Rs. in
crores)
Supreme Court 1990-91, 1993-94 9.68
Customs Act High Court 2002-03 0.03
Commissioner 1993-94 3.92
Supreme Court 2004-05 235.48
High Court 1988-90, 2000-01, 2003-09 14.54
1990-91, 1992-93, 1996-1997,
Tribunal 271.56
1998-2012
Central
Excise Act
Commissioner 1988-90, 1993-94 to 2011-2012 28.53
Deputy
Commissioner 1985-87, 1998-99 0.18
Assistant
Commissioner 1982-84 to 2005-06 0.85
Supreme Court 2006 to 2012 25.73
1973-74, 1991-93, 1994-97,
High Court 1999-2000 to 2005-06,
2007-08 to 105.70
2009-2010
1980-82, 1984-85, 1987-88,
1989-96,
Tribunal 59.93
Sales Tax 1997-2008
Commissioner 1983-95, 1998-99 to 2008-09 245.99
1975-76, 1977-80, 1981-86,
Deputy
Commissioner 62.83
1995-96 to 2008-09
1973-74,1980-81,1983-84
to 1997-99,
Assistant
Commissioner 52.22
2000-01 to 2009-12
Cess on
Royalty, High Court 1956-94, 1999-2002, 2003-06,
2007-2011 7.66
education,
welfare etc.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
(xiv) 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.
(xv) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
(xvi) According to the information and explanations given to us, during
the period covered by our audit report, the Company had issued
unsecured debentures which did not require creation of any charge or
security.
(xvii) The Management has disclosed the end use of money raised by
public issue during the previous year, in Note 2 to the financial
statements and we have verifed the same.
(xviii) 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. 117366W)
N. VENKATRAM
Partner
(Membership No. 71387)
MUMBAI, 18 May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of TATA STEEL LIMITED
("the Company") as at 31st March, 2011, the Profit and Loss Account
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 Companys 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 fi
-nancial statements are free of material misstatements. 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 fi
-nancial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specifi ed 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 that:
(i) 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;
(ii) 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;
(iii) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the Balance Sheet, the Profit and Loss Account
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;
(v) 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date and
(c) in the case of the Cash Flow Statement, of the cash fl ows 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, 2011 taken on record by the Board of
Directors, we report that none of the Directors is disqualifi ed as on
31st March, 2011 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
Annexure to the Auditors Report [Referred to in paragraph (3) of our
report of even date]
(i) Having regard to the nature of the Companys
business/activities/result, clauses (x), (xii), (xiii), and (xiv) of
CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) Some of the fixed assets were physically verifi ed during the year
by the Management in accordance with a regular programme ofiverifi
cation which, in our opinion, provides for physical verifi cation of
all the fixed assets at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verifi cation.
(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 inventory:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verifi ed during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with Consignment/Conversion
Agents, the Company has a programme ofiverifi cation of stocks over a
three-year period. In our opinion, having regard to the nature and
location of stocks, the frequency ofiverifi cation is reasonable. In
case of materials lying with third parties, certifi cates confi rming
stocks have been received for stocks held.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verifi cation 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 its
inventories and no material discrepancies were noticed on physical
verifi cation.
(iv) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
(a) The Company has granted loan aggregating Rs. 7,561.09 crores to one
party during the year. The year-end and the maximum balance due amounts
to Rs. 3,708.07 crores.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(c) The receipts of principal amounts and interest have generally been
regular per stipulations.
(d) Overdue interest as at the year-end amounts to Rs 1.63 crores,
which has been subsequently collected.
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. Accordingly clauses (iii)
(e) to (iii) (g) of paragraph 4 of CARO is not applicable.
(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 are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of 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 Section
301 that needed 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, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
(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 books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacture of bearings, steel tubes and pipes,
steel, chrome ore and alloys and electricity, and are of the opinion
that prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
the maintenance of cost records for any other product of the Company.
(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
dues, including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities. We are informed that the Company intends to
obtain exemption from operation of Employees State Insurance Act at
all locations and necessary steps have been taken by the Company. We
are also informed that actions taken by the authorities at some
locations to bring the employees of the Company under the Employees
State Insurance Scheme has been contested by the Company and
accordingly full payment has not been made of the contributions
demanded.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st March, 2011 for a period of more than six
months from the date they became payable, except for collection of
sales tax which we are informed are refundable to customers because
they have been collected in excess or which have been collected pending
receipt of necessary certifi cates from the customers.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2011 on account of disputes are given below:
Name of the
Statute Financial Year to
which the matter Forum where matter is Amount
(Nature of Dues) pertains pending Rs. Crores
1990-91,1993-94 Supreme Court 9.67
Customs Act 2002-03 High Court 0.03
1993-94 Commissioner 3.92
2004-05 Supreme Court 235.48
1988-90, 2000-01,
2003-07, 2007-09 High Court 14.54
1990-91, 1992-93,
1994-97, 1998-2010 Tribunal 272.75
Central Excise
Act 1988-90, 1992-2010 Commissioner 24.80
1985-87, 1998-99 Deputy Commissioner 0.18
1982-84 to 2005-06 Assistant Commissioner 0.85
2006-09 Supreme Court 23.50
1973-74,1991-93,
1994-96, 1999-04,
High Court 23.54
2009-2010
1977-79, 1980-81,
1984-85, 1989-90, Tribunal 15.16
1991-2002, 2003-04,
2005-08
Sales Tax 1985-87, 1988-89,
1998-2008 Commissioner 83.09
1975-76, 1977-79,1983-87,
Deputy Commissioner 312.55
1988-89 to 2008-09
1973-74,1980-81,1983-84
to 1997-98, Assistant Commissioner 69.32
2000-01 to 2009-11
Cess on
royalty, 1956-94, 1999-2002,
2003-06, High Court 7.66
education,
welfare etc. 2007-2011
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial
institutions are not prima facie prejudicial to the interests of the
Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
(xiv) 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.
(xv) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
(xvi) According to the information and explanations given to us, during
the period covered by our audit report, the Company had issued
unsecured debentures, which did not require creation of any charge or
security.
(xvii) The Management has disclosed the end use of money raised by
public issues in Note 9 of Schedule M of the financial statement,
which has been verifi ed by us.
(xviii) 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.117366W)
P. R. RAMESH Partner.
(Membership No.: 70928)
Mumbai, 25th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of TATA STEEL LIMITED
(Ãthe CompanyÃ) as at 31st March, 2010, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
both annexed thereto, in which are incorporated the Returns from the
Singapore Branch audited by another auditor. These financial statements
are the responsibility of the CompanyÃs 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 misstatements. 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 (AuditorÃs Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give 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 that:
(i) 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;
(ii) 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 and proper Returns adequate for the purposes of our audit
have been received from the Singapore Branch audited by another
auditor;
(iii) the reports on the accounts of the Singapore Branch audited by
another auditor has been forwarded to us and has been dealt with by us
in preparing this report;
(iv) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and the audited Branch Returns;
(v) in our opinion, the Balance Sheet, the Profit and Loss Account 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;
(vi) 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(c) 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, 2010 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
Annexure to the Auditorsà Report [Referred to in paragraph (3) of our
report of even date]
(i) Having regard to the nature of the CompanyÃs
business/activities/results clauses (x), (xii), (xiii), and (xiv) of
CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) Some of the fixed assets were physically verified during the year
by the Management in accordance with a programme of verification which,
in our opinion, provides for physical verification of 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 inventory:
(a) As explained to us, the inventories of finished and semi-finished
goods and raw materials at Works, Mines and Collieries were physically
verified during the year by the Management. In respect to stores and
spare parts and stocks at stockyards and with Consignment/Conversion
Agents, the Company has a programme of verification of stocks over a
three-year period. In our opinion, having regard to the nature and
location of stocks, the frequency of verification is reasonable. In
case of materials lying with third parties, certificates confirming
stocks have been received for stocks held.
(b) In our opinion and according to the information and explanation
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 its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
Consequently, clauses (iii) (a) to (iii) (g) of paragraph 4 of CARO are
not applicable.
(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 are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of 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 Section
301 that needed 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, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
(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 books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacture of bearings, steel tubes and pipes,
steel, chrome ore and alloys and electricity, and are of the opinion
that prima facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
the maintenance of cost records for any other product of the Company.
(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
dues, including Provident Fund, Investor Education and Protection Fund,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities. We are informed that the Company intends to
obtain exemption from operation of Employeesà State Insurance Act at
all locations and necessary steps have been taken by the Company. We
are also informed that actions taken by the authorities at some
locations to bring the employees of the Company under the EmployeesÃ
State Insurance Scheme has been contested by the Company and
accordingly full payment has not been made of the contributions
demanded.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st March, 2010 for a period of more than six
months from the date they became payable, except for collection of
Sales tax which we are informed are refundable to customers because
they have been collected in excess or which have been collected pending
receipt of necessary certificates from the customers.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2010 on account of disputes are given below:
Name of the Statute Financial year to
which the matter Forum where matter Amount
(Nature of the dues) pertains is pending Rs. crores
1990-91, 1993-94 Supreme Court 9.67
Customs Act 2002-03 High Court 0.03
1993-94 Commissioner 3.92
2005-06 Supreme Court 235.48
1988-89, 2000-01,
2005-07, 2007-09 High Court 21.31
1990-91, 1993-94 to
1996-97, 1998-2010 Tribunal 256.36
Central Excise
duty 1987-88, 1989-90,
1991-2010 Commissioner 25.03
1985-87, 1998-99 Deputy Commissioner 0.18
Assistant
1982-84 to 2005-06 0.85
Commissioner
2006-2009 Supreme Court 23.50
1973-74, 1991-93,
1994-96, 1998-99,
High Court 17.45
2000-04, 2009-10
1977-79, 1980-81,1982-83,
1984-85,1989-90,
1991-2002, Tribunal 8.87
Sales tax 2003-04, 2005-06
1985-87, 1988-89, 1998-2008 Commissioner 183.45
1975-76,1977-79, 1983-87,
Deputy Commissioner 344.75
1988-89 to 2008-09
1973-74,1980-81,1983-84
to 1997-98, Assistant
51.01
2000-01 to 2009-10 Commissioner
1956-94, 1999-2002,
2003-06 High Court 24.23
Cess on royalty,
education,
welfare etc. 1989-91, 1992-94,
1994-2003 Commissioner 1.10
Income tax Commissioner of
2006-07 1.42
Income Tax (Appeals)
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks, financial institutions and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
(xiv) 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.
(xv) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
(xvi) According to the information and explanations given to us, the
Company had issued unsecured debenture during the period covered by our
audit report, which did not require creation of any charge or security.
(xvii) The Management has disclosed the end use of money raised by
public issues and we have verified the same. (xviii) 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.117366W)
P. R. RAMESH Partner.
(Membership No.: 70928)
Mumbai, 26th May, 2010