Trivikrama Industries Ltd.
|BSE: 538579||Sector: Others|
|NSE: N.A.||ISIN Code: INE641Q01019|
|BSE 00:00 | 09 Feb||Trivikrama Industries Ltd|
|NSE 05:30 | 01 Jan||Trivikrama Industries Ltd|
|BSE: 538579||Sector: Others|
|NSE: N.A.||ISIN Code: INE641Q01019|
|BSE 00:00 | 09 Feb||Trivikrama Industries Ltd|
|NSE 05:30 | 01 Jan||Trivikrama Industries Ltd|
TO THE MEMBERS OF M/s. TRIVIKRAMA INDUSTRIES LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of TRIVIKRAMAINDUSTRIES LIMITED Limited (the Company) which comprise the StandaloneBalance Sheet as at March 31 2019 the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) the Standalone Statement of Changes in Equity and theStandalone Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas the Standalone financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone 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 Indian Accounting Standards and other accountingprinciples generally accepted in India of the Standalone state of affairs of the Companyas at March 31 2019 the Standalone profit Standalone total comprehensive incomeStandalone changes in equity and its Standalone cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone financial statements.
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 Standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Sr. No. Key Audit Matter
1 Accuracy of recognition measurement presentation and disclosures of revenues andother related balances certain key judgements relating to identification of distinctperformance obligations determination of transaction price of the identified performanceobligations the appropriateness of the basis used to measure revenue recognized over aperiod. Additionally new revenue accounting standard contains disclosures which involvescollation of information in respect of disaggregated revenue and periods over which theremaining performance obligations will be satisfied subsequent to the balance sheet date.
Refer to Notes to the Standalone Financial Statements
1. Principal Audit Procedures
Our audit approach consisted testing of the design and operating effectiveness of theinternal controls and substantive testing as follows:
Evaluated the design of internal controls relating to revenue recognition accountingstandard.
Selected a sample of continuing and new contracts and tested the operatingeffectiveness of the internal control relating to identification of the distinctperformance obligations and determination of transaction price. We carried out acombination of procedures involving enquiry and observation reperformance and inspectionof evidence in respect of operation of these controls.
Tested the relevant information technology systems' access and change managementcontrols relating to contracts and related information used in recording and disclosingrevenue in accordance with the revenue accounting standard.
Selected a sample of continuing and new contracts and performed the followingprocedures :
- Read analysed and identified the distinct performance obligations in thesecontracts.
- Compared these performance obligations with that identified and recorded by theCompany.
- Considered the terms of the contracts to determine the transaction price includingany variable consideration to verify the transaction price used to compute revenue and totest the basis of estimation of the variable consideration.
- Samples in respect of revenue recorded for time and material contracts were testedusing a combination of approved time sheets including customer acceptances subsequentinvoicing and historical trend of collections and disputes.
- Sample of revenues disaggregated by type and service offerings was tested with theperformance obligations specified in the underlying contracts.
- Performed analytical procedures for reasonableness of revenues disclosed by type andservice offerings.
- We reviewed the collation of information and the logic of the report generated fromthe budgeting system used to prepare the disclosure relating to the periods over which theremaining performance obligations will be satisfied subsequent to the balance sheet date.
2. Key Audit Matter
Evaluation of Intercorporate lending positions
The Company has material Intercorporate lending which involves significant amountsadvanced for interest .
Refer Notes 34 to the Standalone Financial Statements
Principal Audit Procedures
Obtained details of parties to whom Loans and inter corporate advances have beengranted and was showing an outstanding balance as on March 31 2019 from management. Weinvolved our internal experts to challenge the management's underlying assumptions inestimating the credibility and the possible outcome of the disputes in IntercorporateAdvances. Our internal experts also considered legal precedence and other rulings inevaluating management's position on these uncertain positions. Additionally we consideredthe effect of new information in respect of Credibility positions as at April 1 2018 toevaluate whether any change was required to management's position on these uncertainties.
3. Key Audit Matter
Recoverability of Long Outstanding Trade receivables
As at March 31 2019 in respect of Trade receivable includes a Long outstandingrecoverable amount of Rs. 3883322 which is pending due from 27th June 2013.
Refer Notes 40 to the Standalone Financial Statements.
Principal Audit Procedures
We have involved our internal experts to review the nature of the amounts recoverablethe sustainability and the likelihood of recoverability upon final resolution.
4. Key Audit Matter
Bad Debts Written off during the reporting period
During the reporting period 2018-19 the company has written off Rs.3478593/-
Refer Notes 26 to the Standalone Financial Statements.
Principal Audit Procedures
We have involved our internal experts to review the nature of the amounts written offand analyse the policy and steps adopted by the management to recover the receivablesbefore writing off the balances.
Information Other than the Standalone Financial Statements and Auditor's Report ThereonThe Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone financial statements and our auditor's 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 financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to preparation of these Standalone financial statementsthat give a true and fair view of the Standalone financial position Standalone financialperformance Standalone total comprehensive income Standalone changes in equity andStandalone cash flows of the Company in accordance with the Accounting Standards and otheraccounting principles generally accepted in India . The respective Board of Directors ofthe company are responsible for maintenance of the adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate 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 Standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the Standalone financial statements the respective Board of Directors ofthe company 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 management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
The respective Board of Directors of the company are also responsible for overseeingthe financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone 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 Standalone 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 controls.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act 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.
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 ability ofthe Company to continue as a going concern. 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 auditor's However future events or conditions may cause the Company to ceaseto continue as a going concern.
Evaluate the overall presentation structure and content of the Standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Obtain sufficient appropriate audit evidence regarding the financial informationof the entities or business activities within the Company to express an opinion on theStandalone financial statements. We are responsible for the direction supervision andperformance of the audit of the financial statements of such entities included in theStandalone financial
Materiality is the magnitude of misstatements in the Standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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 per provision of the companies (Auditor's Report) order 2016 (theorder) issued by the Central Government of INDIA in terms of sub section (11) ofsection 143 of the Act We hereby give in the Annexure a statement on the mattersspecified in paragraph 3 and 4 of the order to the applicable extent.
2. As required by Section 143(3) of the Act based on our audit we report that:
b. 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 aforesaidStandalone financial statements.
c. In our opinion proper books of account as required by law relating to preparationof the aforesaid Standalone financial statements have been kept so far as it appears fromour examination of those books.
d. The Standalone Balance Sheet the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows dealt with by this Report are in agreement with the relevant booksof account maintained for the purpose of preparation of the Standalone financialstatements.
e. On the basis of the written representations received from the directors of theCompany as on March 31 2019 taken on record by the Board of Directors of the Companynone of the directors of the company is disqualified as on March 31 2019 from beingappointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financialreporting and the operating effectiveness of such controls refer to our separate Reportin Annexure A which is based on the auditor's reports of the Company. Ourreport expresses an unmodified opinion on the adequacy and operating effectiveness of theinternal financial control over financial reporting of those company for reasons statedtherein.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
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 as amended inour opinion and to the best of our information and according to the explanations given tous :
1. The Standalone financial statements disclose impact of pending litigations on theStandalone financial position of the
2. Provision has been made in the Standalone financial statements as required underthe applicable law or accounting standards for material foreseeable losses if any onlong term contracts including derivative
3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
Annexure A to the Independent Auditor's Report
(Referred to in paragraph 2 (f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of TRIVIKRAMA INDUSTRIES LIMITED ofeven date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
In conjunction with our audit of the Standalone financial statements of the Company asof and for the year ended March 31 2019 we have audited the internal financial controlsover financial reporting of TRIVIKRAMA INDUSTRIES LIMITED (hereinafter referred to asCompany).
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the respective Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (theICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the respectivecompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 internal financial controls system overfinancial reporting of the Company.
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 unauthorised 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 and to the best of our information and according to the explanationsgiven to us the Company have in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2019 based on the internalcontrol over financial reporting criteria established by the respective companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
Annexure to the Auditor's Report
Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of TRIVIKRAMA INDUSTRIES LIMITED ofeven date we hereby report that:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
b. The fixed assets of the company have been physically verified by the managementduring the year at reasonable intervals which in my opinion is reasonable having regardto the size of the company and nature of its assets. No material discrepancies werenoticed on such physical verification. The company has further written off the entirevalue of its Fixed assets as on 31st March 2019.
c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company does not hold any immovableproperty and hence this clause is not applicable.
iii. The Management has conducted physical verification of inventories at reasonableintervals. No material discrepancies have been noticed on physical verification ofinventories as compared to book records.
iv. The company has granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act. 2013. Accordingly the Company has maintained proper recordsshowing full particulars.
v. In our opinion and according to the information and explanations given to us. Thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.
vi. Based on our scrutiny of the company's records and according to the information andexplanations provided by the management in our opinion the company has not accepted anypublic deposits so far up to 31st March 2019.
vii. We have been informed by the management that no cost records have been prescribedunder section 148(1) of the companies act 2013 in respect of the products dealt by thecompany.
viii. a. According to the records of the Company. the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including income taxGST and other statutory dues applicable to it except for an reconciliation difference ofCGST 10287/- SGST 10287/- and Cess 120000/- between GST Credit ledger and books ofaccounts. According to the explanation and information given no undisputed amount payablein respect of income tax GST and other statutory dues applicable to it were outstandingas at 31st March 2019 for a period of more than 6 months from the date they became payable
b. According to the records of the Company there are no dues of income tax. GST havenot been deposited on account of any dispute.
ix. According to the records of the Company the Company has not borrowed from bankfinancial institution or government and has not issued debentures till 31st March 2019.Hence in our opinion the question of reporting on defaults in repayment of dues to bankfinancial institution Government or debenture holders does not arise.
x. According to the records of the Company the Company did not raise any money by wayof initial public offer or further public offer including debt instruments and term loansduring the year. Accordingly paragraph 3 (ix) of the Order is not applicable.
xi. Based upon the audit procedures performed and information and explanations given bythe management we report that no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.
xii. Based upon the audit procedures performed and the information and explanationsgiven by the management. the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
xiii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly. paragraph 3(xii) of the Order is notapplicable.
xiv. In our opinion and according to the information and explanation given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with related parties and the details of related party transactions have beendisclosed in the financial statements as required by the applicable standards.
xv. According to the information and explanations give to us and 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. Accordingly the provisions of clause 3 (xiv) of the Order is not applicable tothe Company.
xvi. 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 to the Company.
xvii. In our opinion. the company is not required to be registered under section 45 IAof the Reserve- Bank of India Act l 934 and accordingly the provisions of clause 3 (xvi)of the Order is not applicable to the Company.