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Triochem Products Ltd.

BSE: 512101 Sector: Health care
NSE: N.A. ISIN Code: INE331E01013
BSE 05:30 | 01 Jan Triochem Products Ltd
NSE 05:30 | 01 Jan Triochem Products Ltd

Triochem Products Ltd. (TRIOCHEMPRODUCT) - Auditors Report

Company auditors report

To the Members of

TRIOCHEM PRODUCTS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the Financial Statements of TRIOCHEM PRODUCTS LIMITED ("theCompany") which comprise the Balance Sheet as at March 312020 and the Statement ofProfit and Loss (including Other Comprehensive Income) Statement of Changes in Equity andStatement of Cash flows for the year then ended and notes to the Financial Statementsincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Financial Statements").

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 theCompanies Act

2013 ("tile Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 and its net profit including othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial StatementsSection of our report We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor 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 Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to communicate in our report

Other Information

The Company's Management and the 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 Financial Statements and our auditors' reportthereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of theFinancial Statements our responsibility is to read the other information and in doing soconsider whether the other the other information in materially Inconsistent with theFinancial Statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated if based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact Wehave nothing to report in this regard.

Responsibilities of Management and Those charged with Governance for the FinancialStatements

The Company's management and the Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these FinancialStatements that give a ture and fair view of the financial position the financialperformance the changes in equity and the cash flows of the Company in accordance withthe accounting principles generally accepted In India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Financial Statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements the Management and the Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting 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 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 judgement andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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)

Companies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operationeffectiveness 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 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 disclosures are inadequate to modify our opinion.Our conclusions 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.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves 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 Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 of the aforesaidFinancial Statements.

b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Financial Statements have been kept by the Company so far as It appearsfrom our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Cash Flow Statement with by thisReport are in agreement with the books of account maintained for the purpose ofpreparation of the Financial Statements.

d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Account) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terns of Section164(2) of the Act

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and toe operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in toe Auditors' Report inaccordance with Rule 11 of toe 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 has disclosed the impact of pending litigations on its financialposition in its Financial Statements (Refer Note. 24(a) to toe Ind As FinancialStatements).

it. The Company did not have any material foreseeable losses on long-term contractsincluding derivatives contracts.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during toe year ended March 31 2020.

ANNEXURE A TO THE AUDITOR'S REPORT

Referred to in paragraph 1 of ‘Report on other Legal and Regulatory Requirements'in our Report of even date on the accounts of TRIOCHEM PRODUCTS LIMITED for the year endedMarch 31 2020

i. (a) The Company is generally maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The fixed assets were physically verified during the year by the Managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andnature of its Assets. Pursuant to the programme a portion of the fixed assets has beenphysically verified by the management during the year and discrepancies noticed betweenthe book records and physical inventories were not material and have been properly dealtwith in the accounts.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable properties areheld in the name of the company.

ii. During the year inventories have been physically verified by the management In ouropinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventories as compared to the book records have been properlydealt with in the books of accounts

iii. As informed to us the Company has not granted loans secured or unsecured tocompanies firms and limited liability partnerships or other parties covered in theregister maintained under Section 189 of the Act Hence sub clauses (a) & (b) of clause3(iii) of the Order are not applicable to the Company.

iv. The company has not granted any loans has not made any investments has notprovided any guarantees and security to directors or any other parties during the year.Accordingly clause 3(iv) of the Order are not applicable to the Company

v. The Company has not accepted any deposits from the public within the meaning ofSections 737475 and 76 of the Act and the rules framed there under to the extentnotified and therefore clause (v) of the Order is not applicable.

vi. The Central Government 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.Therefore clause 3(vi) of the Order is not applicable.

vii. (a) The Company is generally regular in depositing appropriate authoritiesundisputed statutory dues including Provident Fund Employees State insurance income TaxSales Tax. Duty of Custom Duty of Excise Cess Goods & Services Tax and any othermaterial statutory dues applicable to it. According to the information and explanationsgiven to us no undisputed arrears of statutory dues were outstanding as at March 31. 2020for a period of more than six months from the date they became payable.

(b) As informed to us there were no disputed amounts payable in respect of ProvidentFund Employees' State Insurance Income Tax Sales Tax. Service Tax GST Custom DutyValue Added Tax Cess and any other material statutory dues in arrears as at March 312020; except the statutory dues aggregating to Rs. 3.27 lakhs pending before theappropriate authorities as under-

Name of the statute Nature of dues Forum where toe dues is pending Rs. In lakhs
1. The Income Tax Act 1961 Income Tax Income Tax /Appellate Tribunal (A.Y. 1993-1994) 3.21
Total 3.21

viii. According to the records of the Company examined by us and information andexplanation given to us the Company has not defaulted in repayment of dues to banksduring the year. The Company has not taken any loan or borrowings from governmentfinancial institutions and has not issued debentures during the year.

ix. The Company has not raised any moneys by way of public issue/ further offerincluding debt instruments and through term loans during the year. Accordingly clause3(ix) is not applicable to the company.

x. To the best of our knowledge and according to the information and explanationgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. The Company has not paid or provided managerial remuneration during the year.Accordingly clause 3(xi) is not applicable to the company.

xii. In our opinion and according to the information and explanations given to us thenature of the activities of the Company does not attract any special statue applicable toNidhi Company. Accordingly clause 3(xii) of the Order is not applicable to the Company.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 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. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under audit. Accordingly clause3(xiv) is not applicable to the company.

xv In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of Section 192 of the Act arenot applicable. Accordingly clause 3(xv) is not applicable to toe company.

xvi. According to the information and explanations given to us the Company Is notrequired to obtain registration under Section 45 IA of the Reserve Bank of India Act 1934and therefore clause (xvi) of toe Order is not applicable.

ANNEXURE B TO THE AUDITORS' REPORT

(Referred to in paragraph 2(f) of Report on Other Legal and Regulatory Requirements'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")

We have audited the internal financial controls over financial reporting of TRIOCHEMPRODUCTS LIMITED ("the Company") as of March 31 2020 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 Board of Directors are 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 issued by the Institute of Chartered Accountants of India ('ICAI'). 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 safeguarding ofits 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 Act.

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 Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and If such controls operated effectively in allmaterial 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 included obtaining anunderstanding of Internal financial controls over financial reporting assessing the riskthat a material 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 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 reportingpreparation of Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over reportingincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

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