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Time Technoplast Ltd.

BSE: 532856 Sector: Industrials
NSE: TIMETECHNO ISIN Code: INE508G01029
BSE 00:00 | 22 Jun 85.60 0.05
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86.90

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86.95

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85.10

NSE 00:00 | 22 Jun 85.75 0.30
(0.35%)
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86.40

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87.00

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OPEN 86.90
PREVIOUS CLOSE 85.55
VOLUME 91846
52-Week high 92.25
52-Week low 35.25
P/E 37.71
Mkt Cap.(Rs cr) 1,935
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 86.90
CLOSE 85.55
VOLUME 91846
52-Week high 92.25
52-Week low 35.25
P/E 37.71
Mkt Cap.(Rs cr) 1,935
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Time Technoplast Ltd. (TIMETECHNO) - Auditors Report

Company auditors report

To The Members of

TIME TECHNOPLAST LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of TIME TECHNOPLASTLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2020 the Statement of Profit and Loss (including other comprehensive Income) the CashFlow Statement and the statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the 'Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards ('Ind AS') specified under section 133 of the Act of thestate of affairs (financial position) of the Company as at March 31 2020 and its profit(financial performance including other comprehensive income) its cash flows and thechange in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Emphasis of Matter

4. We draw attention to Note 42 to the accompanying standalone financial statementswith regard to management's evaluation of uncertainty due to the outbreak of COVID-19 andits impact on future operations of the Company. Our opinion is not modified in respect ofthis matter

Key Audit Matters

5. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

6. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Sr No Key Audit Matter Auditor's Response
1. Litigation Claims and Contingent Liabilities: Principal Audit Procedures Performed
(Refer Notes 1(n) and 30A to the standalone financial statements) • We understood the processes evaluated the design and implementation of controls and tested the operating effectiveness of the Company's controls over the recording and re-assessment of uncertain legal positions claims and contingent liabilities.
The Company is exposed to a variety of different laws regulations and interpretations thereof which encompasses indirect taxation and legal matters.
In the normal course of business provisions and contingent liabilities may arise from legal proceedings including regulatory and other Governmental proceedings constructive obligations as well as investigations by authorities and commercial claims. • We held discussions with senior management including the person responsible for legal and compliance to obtain an understanding of the factors considered by management in classification of the matter as 'probable' 'possible' and 'remote';
Based on the nature of regulatory and legal cases management applies significant judgement when considering whether and how much to provide for the potential exposure of each matter. • Examined the Company's legal expenses on sample basis and read the minutes of the board meetings and the legal compliance committee in order to ensure completeness.
These estimates could change substantially over time as new facts emerge as each legal case or matters progresses. • For those matters where Management concluded that no provision should be recorded we also considered the adequacy and completeness of the Company's disclosures made in relation to contingent liabilities.
Given the different views possible basis the interpretations complexity and the magnitude of the potential exposures and the judgement necessary to determine required disclosures this is a key audit matter
2. Income tax provision Principal Audit Procedures Performed
(Refer Notes 1(s) 1420 and 29 to the standalone financial statements) • Our audit procedures to test uncertain tax positions included understanding processes evaluation of design and implementation of controls and testing of operating effectiveness of the Company's controls over provision for taxation assessment of uncertain tax positions and disclosure of contingencies.
This matter has been identified as a Key Audit Matter due to the significant level of management judgement required in the estimation of provision or income taxes including any write back of provisions due to the following factors:
• Obtained details of completed tax assessments and demands as of March 31 2020 from the management.
• Existence of multiple uncertain tax positions leading to multiple disputes / litigations • We discussed with appropriate senior management personnel independently assessed management's estimate of the possible outcome of the disputed cases; and evaluated the Management's underlying key assumptions in estimating the tax provision.
• Provision for tax involves interpretation of various rules and law thereof. It also involves consideration of on-going disputes and disclosures of related contingencies.
• We considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions the provisions made and/or write back of the provisions.
• We also involved our direct tax specialist in evaluating management's assessment for the uncertain tax positions.
• For those matters where Management concluded that no provision should be recorded we also considered the adequacy and completeness of the Company's disclosures made in relation to contingent liabilities.

Information other than the Financial Statements and Auditor's Report thereon

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

8. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the state of affairs (financial position) profit orloss (financial performance including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Ind AS specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

9. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

10. Those Board of Directors are also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

11. Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing 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.

12. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the 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 fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for explaining our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• 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 the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

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

13. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

16. As required by Section 197(16) of the Act based on our audit we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of and limits laid down under Section 197 read with Schedule V to the Act.

17. As required by the Companies (Auditor's Report) Order 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

18. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 appears from our examination of those books;

(c) the standalone financial statements dealt with by this report are in agreement withthe books of account;

(d) in our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act.

(e) on the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on March 312020 from being appointed as a director in terms of section 164(2) of the Act.

(f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2020 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion;

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our knowledge and belief and according to the informationand explanations given to us :

i) the Company has disclosed the impact of pending litigations on its financialposition in the standalone financial statements;

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

iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2020;

For Shah & Taparia For Shah Khandelwal Jain & Associates
Chartered Accountants Chartered Accountants
(Registration No. 109463W ) (Registration No. 142740W)
Ramesh Pipalawa Ashish Khandelwal
Partner Partner
Membership No. 103840 Membership No. 049278
UDIN: 20103840AAAAGZ5935 UDIN: 20049278AAAABT2750
Place: Mumbai Place: Pune
Date : June 29 2020 Date : June 29 2020

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF TIMETECHNOPLAST LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH2020

ANNEXURE A

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant & Equipment's.

b) The Company has a regular program for physical verification in a phased periodicmanner which in our opinion is reasonable having regards to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification.

c) The tile deeds of Immovable property (which are included under Note 2 -'propertyplant & Equipment') are held in the name of the company.

ii. a) In our opinion the management has conducted physical verification of inventoryat reasonable intervals during the year except for goods in transit and stock lying withthird parties . Inventory lying with third parties and in transit have been verified bythe management with reference to the confirmations received from them and/or subsequentreceipt of goods. No material discrepancies were noticed on the aforesaid verification.

iii. The Company has granted unsecured loans to companies covered in the registermaintained under Section 189 of the Act.

a. In respect of aforesaid loan the terms and conditions under which such loans weregranted are not prejudicial to the Company's interest.

b. In respect of the aforesaid loans the parties are repaying the principal amountsas stipulated and are also regular in payment of interest as applicable.

c. There is no overdue amount in respect of loans granted to such companies.

iv. In our opinion the company has compiled with the provisions of Section 185 and 186of the companies Act 2013 in respect of the loans and investment made and guarantees andsecurity provided by it.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014(asamended). Accordingly the provision of clause 3 (v) of the order are not applicable tothe Company.

vi. We have broadly reviewed the books of account maintained by the company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been specified under subsection (1) of Section 148 of theAct and are of opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have not however made a detailed examination of the records witha view to determine whether they are accurate or complete.

vii. (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax goods and services taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable with the appropriate authorities. Further no undisputedamounts payable in respect thereof were outstanding at the year-end for a period of morethan six months from the date they became payable.

(b) The dues outstanding in respect of income tax sales tax including value added taxgoods and services tax service taxes and duty of excise on account of a dispute are asfollows:

Forum where the Dispute is pending Name of Statute (Rs.in lacs) Financial year to which amount relates
Commissioner of Income Tax- Appeal Mumbai Income Tax Act 1961 6.34 2010-11 to 2013-14

viii. The company has not defaulted in repayment of loans or borrowings to anyfinancial institution or bank or government or dues to debenture holders if any as at thebalance sheet date.

ix. The company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion term loans were applied for thepurposes for which the loans were obtained.

x. No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

xi. Managerial remuneration has been paid and provided by the company in accordancewith the requisite approvals mandated by the provision of Section 197 read with Schedule Vto the Act.

xii. In our opinion the company is not a Nidhi Company. Therefore the provisions ofClause 3 (xii) of the order are not applicable to the Company.

xiii. In our opinion all transactions with the related parties are in compliance withthe provision of Sections 177 and 188 of the Act where applicable and the requisitedetails have been disclosed in the financial statements etc as required by the applicableInd AS .

xiv. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly debentures. Accordingly provisions of clause3(xiv) of the Order are not applicable.

xv. The Company has not entered into any non cash transactions with its directors orpersons connected with them covered under Section 192 of the Act. Accordingly theprovisions 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 ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For Shah & Taparia For Shah Khandelwal Jain & Associates
Chartered Accountants Chartered Accountants
(Registration No. 109463W) (Registration No. 142740W)
Ramesh Pipalawa Ashish Khandelwal
Partner Partner
Membership No. 103840 Membership No. 049278
UDIN: 20103840AAAAGZ5935 UDIN: 20049278AAAABT2750
Place: Mumbai Place: Pune
Date : June 29 2020 Date : June 29 2020

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OF TIMETECHNOPLAST LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 312020.

ANNEXURE B

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

1. In conjunction with our audit of the standalone financial statements of TimeTechnoplast Limited ("the Company") as at and for the year ended 31 March 2020we have audited the internal financial controls over financial reporting (IFCoFR) as ofthat date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR includes those policies and procedures that

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

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

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Shah & Taparia For Shah Khandelwal Jain & Associates
Chartered Accountants Chartered Accountants
(Registration No. 109463W) (Registration No. 142740W )
Ramesh Pipalawa Ashish Khandelwal
Partner Partner
Membership No. 103840 Membership No. 049278
UDIN: 20103840AAAAGZ5935 UDIN: 20049278AAAABT2750
Place: Mumbai Place: Pune
Date : June 29 2020 Date : June 29 2020