The Members of Tirupati Starch & Chemicals Limited Indore
Report on the Standalone Ind AS Financial Statements
We have audited the standalone IndAS financial statements of Tirupati Starch &Chemicals Limited ("the Company") which comprises the balance sheet as at 31stMarch 2019 and the statement of Profit and Loss the statement of changes in equityand the statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and profit 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) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
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.
The Key Audit matters
We have determined that there are no key audit matters to communicate in our report.
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone IndAS financial statements and ourauditors' report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone IndAS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour have performed knowledge obtained in the audit or otherwise appears to be materiallymisstated.
If based on the work we 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's Responsibility for the Standalone Ind AS 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 preparation ofthese standalone Ind AS financial statement 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 Accounting StandardsIndAS specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding 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 Ind ASfinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the Ind AS financial statement management is responsible for assessingthe Company's ability to continue as a going concern disclosing. As applicable mattersrelated to going concern and using the going concern basis of accounting unless managementcither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of the Standalone InsAS Financial Statements
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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if. Individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial 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 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 expressing our opinion on whether the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of 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 concer n. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of the standalone IndASfinancial statements including the disclosures and whether the standalone IndASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone IndAS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould 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 ("the Order'')issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act.2013 we give in the Annexure A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
(A) As required by section 143(3) of the Act we report that:
(i) We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit.
(ii) In our opinion. Proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books
(iii) The balance sheet the Statement of profit and loss and the cash flowStatement dealt with by this Report are in agreement with the books of account
(iv) In our opinion the aforesaid financial statements comply with the Ins AS AccountingStandards specified under section 133 of the Act Read with Rule 7 of the Companies(Accounts) Rules 2014.
(v) On the basis of the written representations received from the directors as on31st March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of section164 (2) of the Act.
(vi) 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''
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 thebest of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of accounts as required by law have been kept bythe Company so far as it appears from our examination of those books.
(c) The Balance Sheet and Statement of Profit and Loss including OtherComprehensive Income the cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards prescribed under section 133 of the Act read withrelevant rules 2014.
(e) On the basis of the written representations received from the directors as on31 March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) With Respect to 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"
(B) 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. In our opinionand to the best of the our information and according to the explanations given to us: (i)The Company has disclosed the impact of pending litigations on its financial positionin its standalone Ins AS financial statement Refer Note 30 to the IndAS financial statements
(ii) The company did not have any Long Term Contracts Including derivativecontract for which there were any material foreseeable losse (iii) There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.
(iv) The disclosures in the standalone financial statements regarding holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 2016 have not been made in these standalone financial statements since they donot pertain to the financial year ended 31 March 2019.
(C) With respect to the matter to be included in the Auditors' Report under section197(16):
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
|Place : Indore ||for APG& Associates |
|Date : 27th May 2019 ||Chartered Accountants |
| ||(Registration Number: 119598W) |
| ||Abhay Sharma |
| ||Partner |
| ||M. No.: 411569 |
"Annexure A" to the Independent Auditors' Report on the Standalone Ind ASFinancial Statements of Tirupati Starch & Chemicals Limited.
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement' of our report of even date to the Ind-As financial statements ofTirupati Starch and Chemicals Limited for the year ended March 31 2019 :
(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.
(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable having regardto the size of the company and nature on its assets. No material discrepancies werenoticed on such physical verification.
(c) According to the information and explanations provided to us and on the basisof our examination of the records of the company the title deeds of immovable propertiesare held in the name of the company.
(ii) (a) In our opinion the Inventories have been physically verified during theyear in reasonable intervals during the year by the management.
(b) According to the information and explanations given to us and in our opiniondiscrepancies noticed on verification between the physical stocks and the records were notmaterial having regard to the size & nature of the business of the company and thesame have been properly dealt with in the books of accounts from time to time.
(iii) According to the information and explanations given to us the Company hasnot granted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are notapplicable to the Company.
(iv) In our opinion and according to the information and explanations given to usthe company has not given loans Investments guarantees and security to anydirector/directors directly or indirectly accordingly clause 3 (iv) of the order is notapplicable to the company.
(v) The Company has not accepted any deposits from the public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable.
(vi) We have broadly reviewed the books of accounts maintained by the company inrespect of products where pursuant to the rules made by the Central Government themaintenance of cost records has been prescribed of the section 148(1) of the CompaniesAct and are of the opinion that prima facie the prescribed accounts and records havebeen maintained. However we have not made a detailed examination of such records with aview to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us the company isgenerally regular in depositing with appropriate authorities undisputed statutor y duesincluding provident fund Employees state insurance income tax Goods and Service Taxcess and other material statutory dues to the ex tent applicab le to it as at 31March 2019for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are nomaterial dueswhich have not been deposited with the appropriate authorities on account ofany dispute. However according to information an d explanations g iv e n to us thefollowing dues ofincome tax sales tax duty of excise Custom Duty service tax and valueadded tax have not been deposited by the Company on account of disputes:
|Particulars ||Forum where matter is pending ||Financial/Assessment Year to which matter pertains ||Amount involved |
|1 (a) ||Excise Duty ||Supreme Court (Department's Appeal) ||5/2000 to 2/2005 ||Rs.73504267/- |
|1 (b) ||Excise Duty ||Supreme Court (Department's Appeal) ||3/2005 to 1/2006 ||Rs.19932192/- |
|1 (c) ||Excise Duty ||Suptd. Pithampur ||11/2016 to 06/2017 ||Rs.817821/- |
|2 (a) ||CST ||M.P. High Court ||1995-96 1997-98 1998-99 ||Rs.486766/- |
|2 (b) ||MPCT ||M.P. High Court ||1997-98 ||Rs. 27041/- |
|2 (c) ||Vat Tax ||M.P. High Court ||2014-15 ||Rs.89595/- |
(viii) In our opinion and according to the information and explanation given to usthe company has not defaulted in repayment of loans or borrowings to financialinstitution bankand government. Further the company has not issued any debenture duringthe year.
(ix) According to the information and explanations given to us Term Loan has beenUsed for the purpose for which it was raised.
(x) According to the information and explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.
(xi) Based on the information and explanation given to us the Managerialremuneration has been paid in accordance with the requisite approvals as mandated by theprovisions of sect ion 197 read with the schedule V to the companies act 2013.
(xii) In our opinion and according to the information and explanations given to usthe Company is not a nidhi company. Accordingly paragraph 3 (xii) of the Or d er is notapplicable.
(xiii) According to the information and explanations 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 give to us a n d 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. Accordingly paragraph 3(xv) ofthe Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.
|Place : Indore ||for APG& Associates |
|Date : 27th May 2019 ||Chartered Accountants |
| ||Firm's Registration Number: 119598W |
| ||Abhay Sharma |
| ||Partner |
| ||Membership Number: 411569 |
"Annexure B" to the Independent Auditor's Report on The Standalone Ind ASFinancial Statements of Tirupati Starch and Chemicals 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 TirupatiStarch and Chemicals Limited ("the Company") as of March 31 2019 inconjunction with our audit of the Standalone Ind AS financial statements of the Companyfor 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 Reporting (the"Guidance Note " ) issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls with reference to financial statement of the company that wereoperating 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.
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 with reference to financial statement of the companyover financial reporting was established and maintained and if such controls operatedeffectively 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 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.
In our opinion to the best of our information and according to explanations gives tous the Company has in all material respects an adequate internal financial controlssystem with reference to financial statement of the company over financial reporting andsuch internal financial controls over financial reporting were operating effectively as atMarch 31 2019 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
| ||for APG& Associates |
| ||Chartered Accountants |
| ||Firm's Registration Number: 119598W |
| ||Abhay Sharma |
| ||Partner |
| ||Membership Number: 411569 |
|Place : Indore || |
|Date : 27th May 2019 || |