To The Members
TIRUPATI TYRES LIMITED
Report on the Audit of Financial Statements
We have audited the accompanying financial statements of TIRUPATI TYRES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss Statement of changes in Equity and the Cash Flow Statementfor the year ended at March 312019 and a summary of significant accounting policies andother explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2019 Loss Changes in Equity and it's Cash Flows for the year ended on that date.
Basis of Opinion
We conducted our audit in accordance with the Standard 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 ofFinancial Statements section of our report.
We are independent of the company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules framed 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 are sufficient and appropriate to providea 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statement and in forming ouropinion thereon and we do not provide a separate opinion on these matters. We havedetermined that there are no key audit matters to be communicated in our report.
Information other than the Financial Statements and Auditor's Report thereon
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 report thereon. Our opinion on the Financial Statementsdoes not cover the other information and we do not express any form of assuranceconclusion 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 this regard.
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 preparation ofthese financial statements that give a true and fair view of the financial position
41 financial performance Changes in Equity and cash flows of the company in accordancewith accounting 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 accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting the frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent and design implementation and maintenance of adequate 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.
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. Those 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 the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error are considered material if individually or in aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than from one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 disclosure are inadequate to modify our opinion. Ourconclusions 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.
5. Evaluate the overall presentation structure and content of the financialstatements including the disclosure and whether the financial statements represent theunderlying transactions and events in the manner that achieve fair presentation.
We communicate with those charged 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 alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matter or whenmatters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2016 (the order') issuedby the Central Government of India in terms of section 143 of the Companies Act 2013 wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
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. b. In ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books. c. As per information & explanationgiven to us the company do not have any branch. d. The Balance Sheet Statement of Profitand Loss Changes in Equity and Cash Flow Statement dealt with by this Report are inagreement with the books of accounts. e. In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. f. On the basis of writtenrepresentations received from the directors as on 31st March 2019 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2019 from beingappointed as a director in terms of Section 164(2) of the Act. g. With respect to theadequacy of Internal financial controls over financial reporting of the company and theoperating effectiveness of such controls refer to our separate report in "AnnexureB'. h. 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 our information and according to the explanations given to us:
i. The company does not have any pending litigations which would impact its financialposition. ii. The company did not have any long-term contracts including derivativescontracts for which there were any material foreseeable losses. iii. There were no amountswhich required to be transferred to the Investor Education and Protection Fund by theCompany.
For S K KUMAR & COMPANY
Chartered Accountants (FRN 000204C)
Sunil Kumar Tyagi Partner (M.no. 074982) Place: Mumbai Date: 30th May 2019
"ANNEXURE A" TO THE AUDITOR'S REPORT
(Referred to in paragraph (1) under the heading Report on the Legal andRegulatory Requirements' of our Report of even date)
1. In respect of Fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us all the fixed assets have been physically verified by themanagement at regular intervals as informed to us no material discrepancies were noticedon such verification.
(c) The company has not acquired any immovable properties for the period ending March31 2019.
2. The inventories have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such physical verification.
3. The Company has not granted any loans secured or unsecured to companies firmsLLPs or other parties covered in the register maintained under section 189 of the Act.Accordingly sub clause (a) (b) and (c) are not applicable.
4. The Company has not granted any loan made investments issued guarantees andsecurity as per the provisions of Section 185 and has made Investments in other bodycorporate with in permissible limits under Section 186 of the Companies Act 2013.
5. The company has not accepted any deposits from the public. Therefore compliance withdirectives issued by Reserve Bank of India and the provisions of section 73 to 76 of theAct and the rules framed there under are inapplicable.
6. Maintenance of cost records has not been specified by the Central Government undersub-section (1) of Section 148 of the Act in respect of the any activities of the Company.
7. (a) The Company is generally regular in depositing undisputed statutory duesincluding income tax VAT GST and any other statutory dues with the appropriateauthorities and no statutory dues were in arrears as at 31st March2019 for a period of 6months from the date they become payable.
8. The Company has not taken any loan from financial institutions Banks & Govt.Companies during the period.
9. There were no cases of any fraud on or by the company noticed or reported during theperiod.
10. The company did not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments) nor has taken any term loans during the period.
11. The company has not paid any managerial remuneration during the period which fallsunder the provisions of section 197 read with Schedule V of the act.
12. The company is not a nidhi company as per Companies Act 2013.
13. All transactions entered by the company with the related parties if any are incompliance with sections 177 and 188 of the Companies Act 2013 and the details have beendisclosed in the financial statements.
14. The company has not made any private or preferential placement of shares during theperiod and the requirements of section 42 of Companies Act 2013 and have been compliedwith.
15. The company has not entered into any non-cash transactions with directors orpersons connected with them during the period.
16. As per information & explanation given to us the company is not required to beregistered under Section 45-IA of Reserve Bank of India Act 1934.
For S K KUMAR & COMPANY
Chartered Accountants (FRN 000204C)
Sunil Kumar Tyagi Partner (M.no. 074982) Place: Mumbai Date: 30th May 2019
ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph g' under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013("the Act")
In conjunction with our audit of the Financial Statements of Tirupati Tyres Limited("the Company") as of 31 March 2019 we have audited the internal financialcontrols with reference to the financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company 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 ("the Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to therespective entity's policies the safeguarding of its assets the prevention and detectionof frauds and errors the accuracy and completeness of the accounting records and thetimely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the internal financial controls withreference to financial statementsof the Company based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by the ICAI anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the internal financial control system with reference to financialstatements of the Company.
Meaning of Internal Financial Controls with reference to Financial Statements
A company's internal financial control with reference to financial statements is aprocess designed to providereasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to FinancialStatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements includingthe possibility of collusion or improper managementoverride of controls material misstatements due to error orfraud may occur and not bedetected. Also projections of any evaluation of the internal financial controlswithreference to financial statements to future periods are subject to the risk that theinternal financial control withreference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion and to the best of our information & according to the explanationgiven to us the Company have in all material respects an adequate internal financialcontrols system with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31 March2019 based on the internal control with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.
For S K KUMAR & COMPANY
Chartered Accountants (FRN 000204C)
Sunil Kumar Tyagi Partner (M.no. 074982
Date: 30th May 2019