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Tips Industries Ltd.

BSE: 532375 Sector: Media
NSE: TIPSINDLTD ISIN Code: INE716B01011
BSE 00:00 | 11 Jun 902.05 -0.90
(-0.10%)
OPEN

929.95

HIGH

929.95

LOW

883.00

NSE 00:00 | 11 Jun 900.70 -19.65
(-2.14%)
OPEN

890.00

HIGH

928.75

LOW

890.00

OPEN 929.95
PREVIOUS CLOSE 902.95
VOLUME 901
52-Week high 1064.00
52-Week low 106.55
P/E 45.77
Mkt Cap.(Rs cr) 1,170
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 929.95
CLOSE 902.95
VOLUME 901
52-Week high 1064.00
52-Week low 106.55
P/E 45.77
Mkt Cap.(Rs cr) 1,170
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tips Industries Ltd. (TIPSINDLTD) - Auditors Report

Company auditors report

To the members of tips industries limited

Report on the audit of the financial statements opinion

We have audited the accompanying financial statements of tipsindustries limited ("the company") which comprise the balance sheet as at march31 2020 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 andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the companies act 2013 ("the act") in the manner so required and give a trueand fair view in conformity with the indian accounting standards prescribed under section133 of the act read with the companies (indian accounting standards) rules 2015 asamended ("ind as") and other accounting principles generally accepted in indiaof the state of affairs of the company as at march 31 2020 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows 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 act. Our responsibilities under thosestandards are further described in the auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the company inaccordance 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 act and the rules made thereunder and wehave fulfilled our other ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the financial statements.

Emphasis of matter

1. We draw attention to note no. 33(18) to the statement which explainsthe extent to which covid-19 pandemic will impact the operations and financial results ofthe company.

2. Due to covid-19 pandemic and the lockdown and other restrictionsimposed by the government and local administration the audit processes were carried outbased on the remote access to the extent available/feasible and necessary records madeavailable by the management through digital medium.

Our report is not modified in respect of the above matters.

Key audit matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the 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.

Further based on information and explanation given to us we havedetermined that there is no key audit matters to communicate in our report

Information other than the financial statements and auditor'sreport thereon (other information)

The company's management and board of directors are responsiblefor the preparation of other information. The other information comprises the informationincluded in the annual report but does not include the financial statements and ourauditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

Management and board of directors' responsibility for the financialstatements

The company's management and board of directors are responsiblefor the matters stated in section 134(5) of the act with respect to the preparation ofthese financial statements that give a true and fair view of the state of affairs profitand other comprehensive income changes in equity and cash flows of the company inaccordance with the accounting principles generally accepted in india including theindian accounting standards (ind as)specified under section 133 of the act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the act for safeguarding of the assets of the company and for preventingand detecting frauds and ^ other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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.

In preparing the financial statements management and board ofdirectors are 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 board of directors either intends to liquidate thecompany or to cease operations or has no realistic alternative but to do so.

Board of directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's responsibilities for the audit of the financial statements

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 sas we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the financial statementsmade by management and board of directors.

• conclude on the appropriateness of management and board ofdirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the company to cease to continue as a going concern.

• evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso 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) order2016' (hereinafter referred to as the "order") issued by the centralgovernment of india in terms of sub - section 11 of section 143 of the companies act2014 and on the basis of such checks of the books and records of the company as weconsidered appropriate and according to the information and explanation given to us wegive in the "annexure-a" a statement on the matters specified in paragraph 3 and4 of the order.

2. As required by section 143 (3) of the act we report that:

A. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

B. In our opinion proper books of account as required by law have beenkept 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 othercomprehensive income) the statement of changes in equity and the statement of cash flowdealt with by this report are in agreement with the books of account.

D. In our opinion the aforesaid financial statements comply with theindian accounting standards specified under section 133 of the act.

E. On the basis of the written representations received from thedirectors as on march 312020 taken on record by the board of directors none of thedirectors is disqualified as on march 31 2020 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 withreference to financial statements of the company and the

Operating effectiveness of such controls refer to our separate reportin "annexure-b".

3. With respect to the other matters to be included in theauditor'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 theexplanations given to us:

I. The company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - refer note33(1) to the financialstatements;

Ii. The company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at march312020;

Iii. There has been no delay in transferring amounts required to betransferred to the investor education and protection fund by the company during the yearended march 312020.

Iv. The disclosures in the financial statements regarding holdings aswell as dealings in specified bank notes during the period from november 8 2016 todecember 30 2016 have not been made in the financial statements since they do not pertainto the financial year ended march 312020.

4. With respect to the matter to be included in the auditors'report under section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of section 197 of the act. The remuneration paid to anydirector is not in excess of the limit laid down under section 197 of the act.

For sspa & associates

Chartered accountants

Firm registration no. 131069w

Parag ved

Partner

Membership no. 102432

Udin: 20102432aaaabi1702 \

Place: mumbai

Date: july 24 2020

I. (a) the company is maintaining proper records showing full

Particulars including quantitative details and situation of fixedassets.

(b) the fixed assets of the company have been physically verified bythe management during the year and no material discrepancies have been noticed on suchverification. In our 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 duringthe year. In our opinion the frequency of verification is reasonable. The discrepanciesnoticed on physical verification of inventory as compared to books records were notmaterial.

Iii. In our opinion and according to the information and explanationsgiven to us 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 act. Accordingly clauses 3(iii)(a) to 3(iii)(c) of the order arenot applicable to the company for the current year.

Iv. In our opinion and according to the information and explanationsgiven to us the company has not given any loans investments guarantees and security andas such the provisions of section 185 and 186 of the companies act 2013 are notapplicable for the current year.

V. In our opinion and according to the information and explanationsgiven to us the company has not accepted any deposits within the meaning of sections 73to 76 of the act and the rules framed there under.

Vi. In our opinion and according to the information and explanationsgiven to us the central government of india has not prescribed the maintenance of costrecords under sub-section (1) of section 148 of the act for any of the products of thecompany.

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 the undisputed statutorydues including provident fund employees' state insurance income-tax goods andservice tax cess and other statutory dues as applicable with the appropriate authorities.As explained to us duty of custom is not applicable to the company for the current year.

(b) according to the information and explanations given to us and therecords of the company examined by us in our opinion the company has no undisputedamounts payable in respect of provident fund employees' state insurance income-taxgoods and service tax cess and other statutory dues were in arrears as at march 312020for a period more than six months from the date they became payable. As explained to usduty of custom is not applicable to the company for the current year.

(c) according to the information and explanations given to us and therecords of the company examined by us there are no dues of income tax sales tax valueadded tax service tax goods and service tax which have not been deposited withappropriate authority on account of dispute.

Viii. According to the records of the company examined by us and theinformation and explanation given to us the company has not defaulted in repayment ofdues to any financial institution and bank. The company has not taken any loan orborrowing from government nor has issued any debentures during the current year.

Ix. As per information and explanation given to us on an overallbasis the term loan has been applied for the purposes for which they were obtained.Further the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments).

X. During the course of our examination of the books and records of thecompany carried out in accordance with the generally accepted auditing practices inindia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees noticed or reported during the year nor have we been informed of such case bythe management.

Xi. The company has paid/provided for managerial remuneration as perlimits specified under section 197 read with schedule v of the act.

Xii. The company is not a nidhi company and the nidhi rules 2014 arenot applicable to it the provisions of clause 3 (xii) of the order are not applicable tothe company.

Xiii. As per information and explanation given to us all transactionswith the related parties are in compliance with provisions of sections 177 and 188 ofcompanies act 2013 where applicable and the details of such related party transactionshave been disclosed in the financial statements as required under indian accountingstandard (ind as) 24 related party disclosures specified under section 133 of the actread with rule 7 of the companies (accounts) rules 2014.

Xiv. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3(xiv) of the order are not applicable tothe company.

Xv. According to the information and explanation given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provisions of clause 3(xv) of the order are not applicable tothe company.

Xvi. The company is not required to be registered under section 45-iaof the reserve bank of india act 1934. Accordingly the provisions of clause 3(xvi) ofthe order are not applicable to the company.

For sspa & associates

Chartered accountants

Firm registration no. 131069w

Parag ved

Partner

Membership no. 102432

Udin: 20102432aaaabi1702

Place: mumbai

Date: july 24 2020

Annexure b to the independent auditor's report on the financialstatements of tips industries limited

^ report on the internal financial controls under clause (i) ofsub-section 3 of section 143 of the companies act 2013 ("the act")

Opinion

We have audited the internal financial controls with reference tofinancial statements of tips industries limited ("the company") as of march 312020 in conjunction with our audit of the financial statements of the company for the yearended on that date.

In our opinion the company has in all material respects an adequatef internal financial controls system with reference to financial statements and suchinternal financial controls were operating effectively as at march 31 2020 based on theinternal controls with reference to financial statements criteria established by thecompany considering the essential components of internal controls stated in the guidancenote on audit of internal financial controls over financial reporting issued by theinstitute of chartered accountants of india (the "guidance note").

Emphasis of matters

Due to covid-19 pandemic and the lockdown and other restrictionsimposed by the government and local administration the audit processes were carried outbased on the remote access to the extent available/feasible and necessary records madeavailable by the management through digital medium. Our report is not modified in respectof this matter.

Management's responsibility for internal financial controls

The company's management and board of directors is responsible forestablishing and maintaining internal financial controls based on the internal controlswith references to financial statements criteria established by the company consideringthe essential components of internal controls stated in the guidance note. 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 safeguardingof its 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 companies act 2013.

Auditors' responsibility

Our responsibility is to express an opinion on the company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the guidance note sand the standards on auditingissued by icai and deemed to be prescribed under section 143(10) of the companies act2013 to the extent applicable to an audit of internal financial controls with referenceto financial statements. Those standards and the guidance note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wasestablished and maintained and whether such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlsassessing 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 andappropriate to provide a basis for our audit opinion on the company's internalfinancial controls with reference to financial statements.

Meaning of internal financial controls with reference to financialstatements

A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generally

Accepted accounting principles and that receipts and expenditures ofthe company are being made only in accordance with authorisations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition use or disposition of the company'sassets that could have a material effect on the financial statements.

Inherent limitations of internal financial controls with reference tofinancial statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the

Internal financial controls with reference to financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

For sspa & associates

Chartered accountants firm registration no. 131069w

Parag ved

Partner

Membership no. 102432 udin: 20102432aaaabi1702 place: mumbai

date: july 24 2020