independent auditor1

7/25/2019 Independent Auditor1

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INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF TATA STEEL LIMITED

Report on the Standalone Financial Statement

We have audited the accompanying standalone financial statements of TATA STEEL LIMITED ("the

Company"! hich comp#ise the $alance Sheet as at %&st Ma#ch! '&)! the Statement of *#ofit and Loss!

the Cash +lo Statement fo# the yea# then ended! and a summa#y of significant accounting policies and

othe# e,planato#y info#mation-

Mana!ement' Reponi"ilit# $or the Standalone Financial Statement

The Company.s $oa#d of Di#ecto#s is #esponsi/le fo# the matte#s stated in Section &%0() of the Companies

Act! '&% ("the Act" ith #espect to the p#epa#ation of these standalone financial statements that give at#ue and fai# vie of the financial position! financial pe#fo#mance and cash flos of the Company in

acco#dance ith the accounting p#inciples gene#ally accepted in India! including the Accounting Standa#ds

specified unde# Section &%% of the Act #ead ith 1ule 2 of the Companies (Accounts 1ules! '&0- This

#esponsi/ility also includes maintenance of ade3uate accounting #eco#ds in acco#dance ith the p#ovisions

of the Act fo# safegua#ding the assets of the Company and fo# p#eventing and detecting f#auds and othe#

i##egula#ities4 selection and application of app#op#iate accounting policies4 ma5ing 6udgments and estimates

that a#e #easona/le and p#udent4 and design! implementation and maintenance of ade3uate inte#nal financial

cont#ols that e#e ope#ating effectively fo# ensu#ing the accu#acy and completeness of the accounting

#eco#ds #elevant to the p#epa#ation and p#esentation of the financial statements that give a t#ue and fai# vie

and a#e f#ee f#om mate#ial misstatement! hethe# due to f#aud o# e##o#-

A%ditor' Reponi"ilit#

7u# #esponsi/ility is to e,p#ess an opinion on these standalone financial statements /ased on ou# audit- We

have ta5en into account the p#ovisions of the Act! the accounting and auditing standa#ds and matte#s hich

a#e #e3ui#ed to /e included in the audit #epo#t unde# the p#ovisions of the Act and the 1ules made the#e

unde#-

We conducted ou# audit in acco#dance ith the Standa#ds on Auditing specified unde# Section &0% (& of

the Act- Those Standa#ds #e3ui#e that e comply ith ethical #e3ui#ements and plan and pe#fo#m the auditto o/tain #easona/le assu#ance a/out hethe# the financial statements a#e f#ee f#om mate#ial misstatement-

An audit involves pe#fo#ming p#ocedu#es to o/tain audit evidence a/out the amounts and the disclosu#es in

the financial statements- The p#ocedu#es selected depend on the audito#.s 6udgment! including the

assessment of the #is5s of mate#ial misstatement of the financial statements! hethe# due to f#aud o# e##o#-

In ma5ing those #is5 assessments! the audito# conside#s inte#nal financial cont#ol #elevant to the Company.s

p#epa#ation of the financial statements that give t#ue and fai# vie in o#de# to design audit p#ocedu#es that

a#e app#op#iate in the ci#cumstances! /ut not fo# the pu#pose of e,p#essing an opinion on hethe# the

Company has in place an ade3uate inte#nal financial cont#ols system ove# financial #epo#ting and the

ope#ating effectiveness of such cont#ols- An audit also includes evaluating the app#op#iateness of the


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accounting policies used and the #easona/leness of the accounting estimates made /y the Company.s

Di#ecto#s! as ell as evaluating the ove#all p#esentation of the financial statements- We /elieve that the

audit evidence e have o/tained is sufficient and app#op#iate to p#ovide a /asis fo# ou# audit opinion on the

standalone financial statements-

Opinion

In ou# opinion and to the /est of ou# info#mation and acco#ding to the e,planations given to us! the

afo#esaid standalone financial statements give the info#mation #e3ui#ed /y the Act in the manne# so

#e3ui#ed and give a t#ue and fai# vie in confo#mity ith the accounting p#inciples gene#ally accepted in

India! of the state of affai#s of the Company as at %&st Ma#ch! '&)! and its p#ofit and its cash flos fo# the

yea# ended on that date-

Report on Other Le!al and Re!%lator# Re&%irement

&- As #e3ui#ed /y the Companies (Audito#.s 1epo#t 7#de#! '&) ("the 7#de#"! issued /y the Cent#al8ove#nment of India in te#ms of Section &0%(&& of the Act! e give in the Anne,u#e a statement on

the matte#s specified in pa#ag#aphs % and 0 of the 7#de#! to the e,tent applica/le-

'- As #e3ui#ed /y Section &0%(% of the Act! e #epo#t that9

(a We have sought and o/tained all the info#mation and e,planations hich to the /est of ou#

5noledge and /elief e#e necessa#y fo# the pu#poses of ou# audit-

(/ In ou# opinion! p#ope# /oo5s of account as #e3ui#ed /y la have /een 5ept /y the Company so fa#

as it appea#s f#om ou# e,amination of those /oo5s-

(c The $alance Sheet! the Statement of *#ofit and Loss! and the Cash +lo Statement dealt ith /y

this 1epo#t a#e in ag#eement ith the /oo5s of account-

(d I n ou# opinion! the afo#esaid standalone financial statements comply ith the Accounting Standa#ds

specified unde# Section &%% of the Act! #ead ith 1ule 2 of the Companies (Accounts 1ules! '&0-

(e 7n the /asis of the #itten #ep#esentations #eceived f#om the di#ecto#s as on Ma#ch %&! '&)! and

ta5en on #eco#d /y the $oa#d of Di#ecto#s! none of the di#ecto#s is dis3ualified as on Ma#ch %&!

'&)! f#om /eing appointed as a di#ecto# in te#ms of Section &:0(' of the Act-

(f With #espect to othe# matte#s to /e included in the Audito#.s 1epo#t in acco#dance ith 1ule && of

the Companies (Audit and Audito#s 1ules! '&0! in ou# opinion and to the /est of ou# info#mation

and acco#ding to the e,planations given to us9

i- The Company has disclosed the impact of pending litigations on its financial position in its

financial statements ;1efe#


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ii- The Company has made p#ovisions as #e3ui#ed unde# the applica/le la o# accounting!

standa#ds! fo# mate#ial fo#eseea/le losses if any! on long;te#m cont#acts including de#ivative

cont#acts-

iii- The#e has /een no delay in t#ansfe##ing amounts! #e3ui#ed to /e t#ansfe##ed! to the Investo#

Education and *#otection +und /y the Company-

+o# DEL7ITTE =AS>I


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Anne%re to the Independent A%ditor' Report

(1efe##ed to in pa#ag#aph & unde# .1epo#t on 7the# Legal and 1egulato#y 1e3ui#ements.

section of ou# #epo#t of even date

(i In #espect of its fi,ed assets9

(a The Company has maintained p#ope# #eco#ds shoing full pa#ticula#s! including

3uantitative details and situation of fi,ed assets-

(/ The Company has a p#og#am of ve#ification of fi,ed assets to cove# all the items

in a phased manne# ove# a pe#iod of th#ee yea#s hich! in ou# opinion! is

#easona/le having #ega#d to the sie of the Company and the natu#e of its assets-

*u#suant to the p#og#am! ce#tain fi,ed assets e#e physically ve#ified /y the

Management du#ing the yea#- Acco#ding to the info#mation and e,planations

given to us no mate#ial disc#epancies e#e noticed on such ve#ification-

(ii In #espect of its invento#ies9

(a As e,plained to us! the invento#ies of finished and semi;finished goods and #a

mate#ials at Wo#5s! Mines and Collie#ies e#e physically ve#ified du#ing the

yea# /y the Management- In #espect to sto#es and spa#e pa#ts and stoc5s at

stoc5ya#ds and ith consignment@ conve#sion agents! the Company has a

p#og#amme of ve#ification of stoc5s ove# a th#ee yea# pe#iod- In ou# opinion!

having #ega#d to the natu#e and location of the stoc5s! the f#e3uency of

ve#ification is #easona/le- In case of mate#ials lying ith thi#d pa#ties!

ce#tificates fo# stoc5s held have /een #eceived-

(/ In ou# opinion and acco#ding to the info#mation and e,planations given to us!

the p#ocedu#es of physical ve#ification of invento#ies folloed /y the

Management e#e #easona/le and ade3uate in #elation to the sie of the

Company and the natu#e of its /usiness-

(c In ou# opinion and acco#ding to the info#mation and e,planations given to us!

the Company has maintained p#ope# #eco#ds of its invento#ies and no mate#ial

disc#epancies e#e noticed on physical ve#ification-

(iii The Company has not g#anted any loans! secu#ed o# unsecu#ed! to companies!

fi#ms o# othe# pa#ties cove#ed in the 1egiste# maintained unde# Section &B of the

Companies Act! '&%-

(iv In ou# opinion and acco#ding to the info#mation and e,planations given to us!

having #ega#d to the e,planations that some of the items pu#chased a#e of special

natu#e and suita/le alte#native sou#ces a#e not #eadily availa/le fo# o/taining

compa#a/le 3uotations! the#e is an ade3uate inte#nal cont#ol system commensu#ate

ith the sie of the Company and the natu#e of its /usiness ith #ega#d to

pu#chases of invento#y and fi,ed assets and the sale of goods and se#vices- Du#ing

the cou#se of ou# audit! e have not o/se#ved any ma6o# ea5ness in such inte#nalcont#ol system-


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(v In ou# opinion and acco#ding to the info#mation and e,planations given to us! the

Company has complied ith the p#ovisions of Sections 2% to2: o# any othe#

#elevant p#ovisions of the Companies Act! '&% and the Companies (Acceptance

of Deposits 1ules! '&0! as amended! ith #ega#d to the deposits accepted-

Acco#ding to the info#mation and e,planations given to us! no o#de# has /eenpassed /y the Company La $oa#d o# the


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Stat%te in)ol)ed

*Nat%re o$ D%e+ pendin! *R, In crore+

CIT(A@ITAT

'((0()! '((:(2 to '(('(&(

&!)%%-2)Income Ta,

Income Ta, 7ffice# '(&(&& -:2

Sup#eme Cou#t &(& ? &%0 -:B

Customs Act =igh Cou#t '(('(% -%

Commissione# &%0 ? '(&0&) B%-)

Sup#eme Cou#t '((0() '%)-0B

=igh Cou#t &BB(! '((((& ? '((%(: '-))

T#i/unal

&(&! &'0! &:2 ? &B to

'(&0

)-)0

Cent#al E,cise Act

&)

Commissione#

&BB(! &0) to '((%(0 ? '(()(:to0%-)&

'(&0&)

Deputy Commissione# &B)B2 ? &B -&B

Assistant Commissione# &B%'((: -B)


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Name o$ the

Stat%te For%m (here Dip%te i

Period to (hich the amo%nt relate

Amo%nt

in)ol)ed

*Nat%re o$ D%e+ pendin! *R, In crore+


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Sup#eme Cou#t '((((% ? '((B&) ))-'0

=igh Cou#t

&2%20! &222! &B%B0! &&

B!&'((0!

'%&-

'((2&( ? '(&'&)

T#i/unal &B(B&! &B%B)! &B! '((&&' 2B-0%

Sales Ta,

Commissione# &BB(! && '! &%0! '((('(&) %&-B&

Deputy Commissione#

&2)2:! &222B! &B%BB ? &%0 to

'(&&

2)-)

&'

Assistant Commissione#

&2%20! &B(B&! &B%B0 to &:2!

'((((&

-&0

to '(()(: ? '((B(

Cess on #oyalty! =igh Cou#t &):0 2-::education! "elfa#eetc-

(d The Company has /een gene#ally #egula# in t#ansfe##ing amounts to the Investo#

Education and *#otection +und in acco#dance ith the #elevant p#ovisions of the

Companies Act! &): (& of &): and 1ules made the#e unde# ithin time-

(viii The Company does not have accumulated losses at the end of the financial yea#

and the Company has not incu##ed cash losses du#ing the financial yea# cove#ed

/y ou# audit and in the immediately p#eceding financial yea#-

(i, In ou# opinion and acco#ding to the info#mation and e,planations given to us! the

Company has not defaulted in the #epayment of dues to financial institutions!

/an5s and de/entu#e holde#s-

(, In ou# opinion and acco#ding to the info#mation and e,planations given to us! the

te#ms and conditions of the gua#antees given /y the Company fo# loans ta5en /y

othe#s f#om /an5s and financial institutions a#e not! p#ima facie! p#e6udicial to the

inte#ests of the Company-


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(,i In ou# opinion and acco#ding to the info#mation and e,planations given to us! the

te#m loans have /een applied /y the Company du#ing the yea# fo# the pu#poses fo#

hich they e#e o/tained! othe# than tempo#a#y deployment pending application-

(,ii To the /est of ou# 5noledge and acco#ding to the info#mation and e,planationsgiven to us! no f#aud /y the Company and no mate#ial f#aud on the Company has

/een noticed o# #epo#ted du#ing the yea#-

For DELOITTE HAS-INS . SELLS LLP

Cha#te#ed Accountants

(+i#m.s 1egist#ation

independent auditor1

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