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Tips Industries Ltd.

BSE: 532375 Sector: Media
NSE: TIPSINDLTD ISIN Code: INE716B01011
BSE 00:00 | 18 Mar 62.70 -3.10
(-4.71%)
OPEN

63.85

HIGH

65.00

LOW

61.50

NSE 00:00 | 18 Mar 62.35 -3.35
(-5.10%)
OPEN

65.25

HIGH

65.50

LOW

62.05

OPEN 63.85
PREVIOUS CLOSE 65.80
VOLUME 7300
52-Week high 151.90
52-Week low 57.50
P/E 41.52
Mkt Cap.(Rs cr) 96
Buy Price 61.10
Buy Qty 1000.00
Sell Price 62.70
Sell Qty 1700.00
OPEN 63.85
CLOSE 65.80
VOLUME 7300
52-Week high 151.90
52-Week low 57.50
P/E 41.52
Mkt Cap.(Rs cr) 96
Buy Price 61.10
Buy Qty 1000.00
Sell Price 62.70
Sell Qty 1700.00

Tips Industries Ltd. (TIPSINDLTD) - Auditors Report

Company auditors report

To the Members of Tips Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Tips Industries Limited (the"Company") which comprise the Balance Sheet as at March 31 2018 the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting recordsrelevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncementrequire thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Financial Statements.

Basis for Qualified opinion

Attention is invited to Note 34(15) to the financial statements for the year endedMarch 31 2018 regarding non recognition of Deferred tax liability on timing differencesin accounting of inventory. In the absence of adequate information we are unable toquantify its impact on the profits for the year and on the reserves as at March 312018.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its profit and its cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by 'The Companies (Auditor's Report) Order 2016' (hereinafter referredto as the "Order") issued by the Central Government of India in terms of sub -section 11 of section 143 of the Companies Act 2014 and on the basis of such checks ofthe books and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in the "Annexure-A" a statementon the matters specified in paragraph 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

a) We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen 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 Statementdealt with by this Report are in agreement with the books of account.

d) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph in our opinion the Balance Sheet the Statement of Profit and Lossand the Cash Flow Statement comply with the Accounting Standards specified under Section133 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 March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas

on March 31 2018 from being appointed as a director in terms of Section 164 (2) of theAct.

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 Rule 11 the Companies (Audit and Auditors) Rules 2014 in our opinion andto the best of our information and according to the explanations given to us:

a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements-Refer Note 34(1) to the financial statements;

b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 312018;

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312018.

For SSPA & Associates

Chartered Accountants Firm Registration No.131069W

Parag Ved

Place : Mumbai Partner

Date : May 28 2018 Membership Number : 102432

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF TIPS INDUSTRIES LIMITED

i. (a) The Company is maintaining proper records showing full

particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies have been noticed on such verification. Inour opinion the frequency of verification is reasonable.

(c) The title deeds of immovable properties are held in the name of the Company.

ii. The inventory has been physically verified by the Management during the year. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventory as compared to books records were not material.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly clauses 3(iii)(a) to 3(iii)(c) of the Order are notapplicable to the Company for the current year.

iv. In our opinion and according to the information and explanations given to us theCompany has not given any loans investments guarantees and security and as such theprovisions of Section 185 and 186 of the Companies Act 2013 are not applicable for thecurrent year.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within

the meaning of Sections 73 to 76 of the Act and the rules framed there under.

vi. In our opinion and according to the information and explanations given to us theCentral Government of India has not prescribed the maintenance of cost records undersub-section (1) of Section 148 of the Act for any of the products of the Company.

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 generallyregular in depositing the undisputed statutory dues including Provident FundEmployees'State Insurance Income-tax Sales-tax Service tax Value Added tax Goods and Servicetax cess and other statutory dues as applicable with the appropriate authorities. Asexplained to us Duty of Custom and Duty of Excise are not applicable to the Company forthe current year.

(b) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has no undisputed amounts payable inrespect of Provident Fund Employees' State Insurance Income-tax Sales-tax Service taxValue Added tax Goods and Service tax cess and other statutory dues were in arrears asat March 31 2018 for a period more than six months from the date they became payable. Asexplained to us Duty of Custom and Duty of Excise are not applicable to the Company forthe current year.

(c) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax sales tax value added taxservice tax which have not been deposited with appropriate authority on account of disputeexcept as mentioned below:

Nature of Statute Nature of Dues Amount (Rs. in Lakhs) Period to which the amount relate Forum where the dispute is pending
Maharashtra VAT Act 2005 Sales tax interest and penalty 35.66 F.Y 2005-06 Commissioner of Sales Tax (Appeals)
63.83 F.Y 2006-07
148.19 F.Y 2007-08
151.30 F.Y 2008-09
173.60 F.Y 2009-10
304.67 F.Y.2012-13
186.65 F.Y.2013-14
Maharashtra VAT Act 2005 Sales tax interest and penalty 383.83 F.Y 2010-11 Maharashtra Sales tax Tribunal
193.84 F.Y.2011-12

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution and bank. The Company has not taken any loan or borrowing fromGovernment nor has issued any debentures during the current year.

ix. As per information and explanation given to us on an overall basis the term loanhas been applied for the purposes for which they were obtained. Further the Company hasnot raised any money by way of initial public offer or further public offer (includingdebt instruments).

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of such case by theManagement.

xi. The Company has paid/provided for managerial remunerationas per limits specifiedunder Section 197 read with Schedule V of the Act.

xii. The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicable toit the provisions of Clause 3 (xii) of the Order are not applicable to the Company.

xiii. As per information and explanation given to us all transactions

with the related parties are in compliance with sections 188 of Companies Act 2013.The details of such related party transactions have been disclosed in the financialstatements as required under Indian Accounting Standard (Ind AS) 24 Related PartyDisclosures specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. According to the information and explanation given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of Clause 3(xv) of the Order are not applicable to theCompany.

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 SSPA & Associates

Chartered Accountants Firm Registration No.131069W

Parag Ved

Partner

Membership Number : 102432

Place : Mumbai Date : May 28 2018

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF TIPS INDUSTRIES LIMITED

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

We have audited the internal financial controls over financial reporting of TipsIndustries Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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

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

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 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 SSPA & Associates

Chartered Accountants

Firm Registration No.131069W

Parag Ved

Place : Mumbai

Partner

Date : May 28 2018

Membership Number : 102432