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Tirupati Industries (India) Ltd.

BSE: 531547 Sector: Industrials
NSE: N.A. ISIN Code: INE329E01017
BSE 00:00 | 12 Feb Tirupati Industries (India) Ltd
NSE 05:30 | 01 Jan Tirupati Industries (India) Ltd
OPEN 2.35
PREVIOUS CLOSE 2.35
VOLUME 430
52-Week high 9.44
52-Week low 2.35
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.35
Sell Qty 3.00
OPEN 2.35
CLOSE 2.35
VOLUME 430
52-Week high 9.44
52-Week low 2.35
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.35
Sell Qty 3.00

Tirupati Industries (India) Ltd. (TIRUPATIINDS) - Auditors Report

Company auditors report

To

The Members of

Tirupati Industries (India) Limited.

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of TirupatiIndustries India Limited ("the Company") which comprise the Balance Sheetas at 31 March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the company has in place an adequate internal financial control system overfinancial reporting and operating efficiencies of such control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate toprovide a basis for our audit opinion on the financial statements.

Basis for Qualification

We draw attention to issue relating to uncertainty of recoverability in respect ofexport receivables amounting to Rs.12.50 Crore. There is no movement in these accounts forfairly long time and no confirmation for the outstanding amount has been received fromsuch debtor. Pending ultimate outcome of the matter which is presently unascertainable inthe opinion of the Management no adjustment has been made for the same in the financialresults. In view of the uncertainty on recoverability of the above export debtorsamounting to Rs.12.50 Crore provision required for of the same has not been made in theseaccompanying financial results and as a result the profit for the year to date resultaccumulated balance in Profit & Loss Account and sundry debtors at the end of theperiod are over stated by the said amount. Our report is modified to that extent.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements except for the matterdescribed in the Basis for Qualification Paragraph give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India;

a) In the case of the Balance Sheet of the state of afairs of the Company as at March31 2017;

b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Emphasis of Matters

We draw attention to the following:

a) M/s Citibank the lender to the company has obtained order against the company fromthe Debt Recovery Tribunal for recovery of its outstanding dues along with interest. Asexplained to us the Management has been taking appropriate counter legal action againstthe same and is taking all steps to resolve the matter legally as well throughnegotiations with the Bank.

b) Balances under certain trade receivables current and non-current assets tradepayables and other current liabilities have not been confirmed and consequential impact onaccounts if any is not ascertainable.

c) The company had made investment of Rs.40.00 lakhs in an unlisted Company. In absenceof financial information and documentary evidences we are unable to comment whether thereis any diminution other than temporary in the value of this investment.

Our opinion s not qualified on the aforesaid matters.

Report on other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report ) Order 2016 ("the Order )issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the in the Annexure a Statement on the matters specified in Paragraph3 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 except for thematter stated in Emphasis of matters.

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 Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 except for possible effect of matters described in basisfor qualified opinion.

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 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"; and

g) With respect to the other matters included in the Auditor's Report and in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion to the bestof our information and according to the explanations given to us:

i. The Company has Disclosed the impact of pending litigations on which impact onfinancial position in its financial statements as referred to in 27B (1) to (4) to thefinancial statements.

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

iii. There is no requirement to transfer any amount to the Investor Education andProtection Fund by the company since this clause is not applicable to the company.

For Mayra & Khatri Chartered Accountants

Firm Registration No.-106111W

Sd/- N. V. Sheth

Partner

Membership No. 35169

Place : Mumbai

Dated : 30/05/2017

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF TIRUPATI INDUSTRIES INDIA 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 TirupatiIndustries India Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 judgment 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 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 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.

Qualified opinion

According to the information and explanations given to us and based on our audit thefollowing material weakness has been identified as at March 31 2017: The Company needs anappropriate internal control system for customer acceptance credit evaluation materialand establishing customer credit limits for sales which could potentially result in theCompany recognizing revenue without establishing reasonable certainty of ultimatecollection in light of uncertainty recoverability of substantial export receivables.

A ‘material weakness' is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company's annual or interim financialstatements will not be prevented or detected on a timely basis. In our opinion theCompany has in all material respects except as stated above an internal financialcontrols system over financial reporting commensurate with size of the company and natureof its business and such internal financial controls over financial reporting weregenerally operating effectively as at March 31 2017 however the same needs to be furtherstrengthened based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India

We have considered the material weakness identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the standalonefinancial statements of the Company and the material weakness does not affect ourqualified opinion on the standalone financial statements of the Company

For Mayra & Khatri Chartered Accountants

Firm Registration No.-106111W

Sd/-

N. V. Sheth

Partner

Membership No. 35169

Place : Mumbai

Dated : 30/05/2017