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Tanvi Foods (India) Ltd.

BSE: 540332 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE978V01015
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NSE 05:30 | 01 Jan Tanvi Foods (India) Ltd
OPEN 60.15
PREVIOUS CLOSE 60.25
VOLUME 6000
52-Week high 109.50
52-Week low 38.50
P/E 34.04
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 60.15
CLOSE 60.25
VOLUME 6000
52-Week high 109.50
52-Week low 38.50
P/E 34.04
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tanvi Foods (India) Ltd. (TANVIFOODS) - Auditors Report

Company auditors report

To the Members of M/s. Tanvi Foods (India) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements ofM/s. Tanvi Foods (India) Limited (“the Company”) which comprise the BalanceSheet as at 31st March 2021 the Statement of Profit and Loss and theStatement of Cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as the “Standalone Financial Statements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under Section 133 ofthe Act (“AS”) and other accounting principles generally accepted in India ofthe State of affairs of the Company as at 31st March 2021 and its Profit andits Cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on theStandalone Financial Statements.

Emphasis of Matter

We draw your attention to Note No. 46 of the Standalone FinancialStatements which describes Management's assessment of the impact of the Covid 19pandemic on the operations and financial results of the company. Our opinion is notmodified in respect of the above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key Audit Matter How the matter was addressed in the Audit
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Obtained details of completed tax assessments and demands upto the Financial year ended 31st March 2021 from management along with the further course of action adopted by the management.
Refer Note No. 40 to the Financial Statements
We read and analysed various submissions to the Statutory Authorities in respect of the assessments mentioned above and considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions;
We advised the management to disclose the comprehensive summary of the cases pending along with the outstanding amount in Financial Statements and accordingly the same was disclosed under "Contingent Liabilities" in Note No 40. ITAT pronounced 2 Orders dt 12th May 2021 & dt 10th June 2021 stating that the company is eligible for the benefit of deduction u/sec 80IB(11A) for FY 2012-13 FY 2013-14 FY 2014-15 & FY 2015-16 and directed AO to recalculate the deduction u/sec 80IB(11A) and pass necessary order accordingly. For other details Please refer Note No. 40

Information Other than the Standalone Financial Statements andAuditor's Report Thereon:

The Company's Board of Directors are responsible for the otherinformation. The other information comprises the information included in the annualreport for example Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the standalone financial statementsand our auditor's report thereon. The other information as stated above is expectedto be made available to us after the date of this auditor's report. Our opinion onthe standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. When we read the other informationas stated above if we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with Governance.

Responsibilities of Management and Those charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe Financial position Financial performance and Cash flows of the Company in accordancewith the Accounting principles generally accepted in India including the AccountingStandards specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements the Board of Directors /Management is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the Goingconcern basis of accounting unless the Board of Directors / Management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. Those Board of Directors are also responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements;

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with the SAs we exerciseProfessional Judgement and maintain Professional Skepticism throughout the audit.

We also;

1. Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher thanfor one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure A a statement on thematters 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 bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the Internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided by the company to its directors during the year is inaccordance with the provisions of the section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inacco rdance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 40 to the financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

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

For V N S S & ASSOCIATES
Chartered Accountants
Sd/-
V N S SRINIVASARAO
Proprietor
M. No. 225281
Firm Regn. No. 018367S
UDIN : 21225281AAAABS5541
Place: Hyderabad
Date : 30.06.2021

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of theCompany on the Standalone Financial Statements as at 31st March 2021 wereport that:

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

b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all items which in our opinion is reasonable having regardto the size of the Company and the nature of its assets. Pursuant to the programme aportion of the fixed assets has been physically verified by the management during the yearand no material discrepancies have been noticed on such verification and the same havebeen properly dealt with in the books of account.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable property areheld in the name of the company.

(ii) a) The inventory has been physically verified by the management during the year.In our opinion the frequency of verification is reasonable.

b) In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and natureof its business.

c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

(iii) a) The company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

b) In case of loans granted to companies firms Limited Liability Partnerships orother parties listed in the register maintained under section 189 of the Act theborrowers have been regular in the payment of interest as stipulated. The terms ofarrangements do not stipulate any repayment schedule and the loans are repayable ondemand. Accordingly paragraph 3 (iii) (b) of the order is not applicable to the companyin respect of repayment of principal amount.

c) There are no overdue amounts in respect of the loans granted to companies firmsLimited Liability Partnerships or other parties listed in the register maintained undersection 189 of the Companies Act 2013 (The Act).

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any Loans made investments of provided Securities to Companies andother parties listed under section 185 and 186 of the Act

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the public during the year. Therefore theprovisions of Sec 73 to 76 and the rules framed there under are not applicable to theCompany.

(vi) The maintenance of cost records has not been prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 in respect of the Company'soperations. Therefore the provisions of Clause 3(vi) of the Order are not applicable tothe Company.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records Undisputed statutory dues including Provident fundEmployee State Insurance Income-tax Sales tax Value Added Tax Duty of Customs Goodsand Service tax Cess have generally been deposited with the appropriate authorities andthere have been delays in some cases.

b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employee State Insurance Income-tax Sales taxValue Added Tax Duty of Customs Goods and Service tax Cess and other material statutorydues were in arrears as at 31st March 2021 for a period of more than sixmonths from the date they became payable except as mentioned in the following Statement ofArrears;

Statement of Arrears of Outstanding Statutory Dues for more than Sixmonths :

Sl. No . Name of the Statute Nature of Dues Amount (INR)
1 Employees Provident Fund and Miscellaneous Provisions Act 1952 Provident Fund 470869
2 The ESI Act 1948 Employee State Insurance 49855
3 Andhra Pradesh Tax on Professions Trades Callings and Employments Act 1987 Professional Tax Telangana 20950
4 Andhra Pradesh Tax on Professions Trades Callings and Employments Act 1987 Professional Tax Andhra Pradesh 9900
5 Income Tax Act 1961 TDS 1009210

c) According to the information and explanations given to us there are no materialstatutory dues including Sales tax Value Added Tax Duty of Customs Goods and ServiceTax Cess and any other material statutory dues pending for deposit with the appropriateauthorities on account of any dispute except as mentioned in Note No. 40 of theStandalone Financial Statements;

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions banks and debenture holders except as mentioned in Note No 39of the Standalone Financial Statements

(ix) The Company did not raise any money by way of Initial Public Offer or FurtherPublic Offer (including debt instruments). The Company has raised new term loans duringthe year. The term loans outstanding at the beginning of the year and those raised duringthe year have been applied for the purposes for which they were raised.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has Paid / Provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not made any Preferentialallotment or Private Placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 as a Non-Banking Financial Company.

For V N S S & ASSOCIATES
Chartered Accountants
Sd/-
V N S SRINIVASARAO
Proprietor
M. No. 225281
Firm Regn. No. 018367S
Place: Hyderabad
Date : 30.06.2021

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of M/s Tanvi Foods (India) Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI').

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on

Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For V N S S & ASSOCIATES
Chartered Accountants
Sd/-
V N S SRINIVASARAO
Proprietor
M. No. 225281
Firm Regn. No. 018367S
Place: Hyderabad
Date : 30.06.2021

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