TTK Prestige Ltd.
|BSE: 517506||Sector: Consumer|
|NSE: TTKPRESTIG||ISIN Code: INE690A01010|
|BSE 00:00 | 22 Oct||9476.80||
|NSE 00:00 | 22 Oct||9461.60||
|Mkt Cap.(Rs cr)||13,135|
|Mkt Cap.(Rs cr)||13134.84|
TTK Prestige Ltd. (TTKPRESTIG) - Auditors Report
Company auditors report
TO THE MEMBERS OF TTK PRESTIGE LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of TTK PrestigeLimited ("the Company") which comprise the standalone balance sheet as at 31March 2021 the standalone statement of Profit and Loss including other comprehensiveincome standalone statement of changes in equity and standalone statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (herein after referredto as "standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2021and profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial 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 (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act 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 Matter
Key Audit Matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matte
We have determined the matter described below to be the Key AuditMatter to be communicated in our report
Information Other than the Consolidated Financial Statements andAuditor's Report Thereon
The Company's management and Board of Directors are responsible for thepreparation of the other information. The other information comprises the informationincluded in the board's report business responsibility report and report on CorporateGovernance but does not include the standalone financial statements and our auditor'sreport thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.
Responsibilities of the Management and Those Charged with Governancefor Standalone Financial Statements
The Company's management and Board of Directors are responsible for thematters stated in section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian accountingStandards specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors 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.
Those Board of Directors are also responsible for overseeing thecompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls with referenceto standalone financial statements in place and the operating effectiveness of suchcontrols.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key Audit Matte Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would 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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The standalone balance Sheet the standalone statement of profitand loss (including other comprehensive income) the standalone cash flow Statement andthe standalone statement of Changes in Equity dealt with by this report are in agreementwith the books of account.
(d) In our opinion the aforesaid Standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on March 312021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous.
i. The Company has disclosed the impact of pending litigations as atMarch 312021 on its financial position in its Standalone financial statements Refer Note5.9.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts - Refer Note 5.3.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2021.
3. With respect to the matter to be included in the Auditor's Reportunder section 197(16) of the Act:
In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act.
Referred to in paragraph 1 on 'Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of TTK Prestige Limited ("theCompany") on the standalone financial statements as of and for the year ended 31March 2021.
(i) As required by the Companies
(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of itsfixed assets by which all fixed assets are verified in a phased manner over a period ofthree yea In our opinion this periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programmecertain fixed assets were physically verified by the management during the year. In ouropinion and according to the information and explanations given to us no materialdiscrepancies were noticed on such verification.
(c) According to the information and explanations given to us therecords examined by us and based on the examination of the registered sale deed providedto us we report that the title deeds comprising all the immovable properties of theland and buildings which are freehold are held in the name of the Company as at BalanceSheet date. In respect of immovable properties of land and building that have been takenon lease and disclosed as right of use assets in the standalone financial statements thelease agreements are in the name of the Company.
(ii) The Company has conducted physical verification of inventories atreasonable intervals. Discrepancies noticed on such verification have been properly dealtwith in the books of account.
(iii) Based on our audit procedures & according to the informationand explanation given to us the Company has not granted any loans secured or unsecuredto parties covered in the register maintained under section 189 of the Act and hence3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanationgiven to us the Company has complied with provisions of Section 185 and 186 of the Act inrespect of grant of loans making investments and providing guarantees and securities asapplicable.
(v) Based on our audit procedures & according to the informationand explanation given to us the Company has not accepted any deposits from the publicwithin the meaning of the Act and the rules made there under and hence clause 3(v) of theOrder is not applicable.
(vi) We have broadly reviewed the books of account maintained by theCompany as specified under Section 148(1) of the Act for maintenance of cost records inrespect of the products manufactured by the Company and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of cost records with a view to determine whether they areaccurate or complete.
(vii)(a) According to the information and explanations given to us andthe records of the Company examined by us the Company has generally been regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax duty of customs duty of excise Goods and Services Tax (GST) cess and anyother statutory dues as applicable with the appropriate authorities.
According to the information and explanation given to us and therecords of the Company examined by us no undisputed amounts payable in respect ofprovident fund employees' state insurance income-tax duty of customs duty of exciseGoods and Services Tax(GST) cess and any other statutory dues were in arrears as at 31March 2021 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and basedon our examination of the records of the Company there are no dues of Income-tax SalesTax Service tax Goods and Services Tax(GST) Duty of customs Excise duty and Valueadded tax as at 31 March 2021 which have not been deposited with the appropriateauthorities on account of any dispute except as stated below:
(viii) Based on our audit procedures and as per the information andexplanations given by the management the Company has not taken any loans or borrowingsfrom financial institutions banks and government and has not issued any debentures. Hencereporting on defaults in repayment of loans under clause (viii) of CARO 2016 is notapplicable to the Company.
(ix) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) or term loans and hence reportingunder clause (ix) of the Order is not applicable.
(x) To the best of our knowledge and belief and according to theinformation and explanations given to us we report that no fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the year norhave we been informed of any such case by the management.
(xi) Based on our audit procedures and as per the information andexplanations given to us Managerial remuneration paid/ provided during the year is inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.
(xii) The Company is not a Nidhi company in accordance with Nidhi Rules2014. Accordingly the provisions of clause (xii) of the Order are not applicable.
(xiii) Based on our audit procedures and according to the informationand explanations given to us all the transactions entered into with the related partiesduring the year are in compliance with Section 177 and Section 188 of the Act whereapplicable and the details have been disclosed in the standalone financial statements asrequired by the applicable Indian accounting standards.
(xiv) Based on our audit procedures and according to the informationand explanations given to us the Company has not made any preferential allotment/privateplacement of shares/ fully or partly convertible debentures during the year under review.
(xv) Based on our audit procedures and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with them.
(xvi) Based on our audit procedures and according to the informationand explanations given to us the Company is not required to be registered under Section45-IA of Reserve Bank of India Act 1934.
Referred to in paragraph 2(f) on 'Report on Other Legal and RegulatoryRequirements' of our report of even date
Report on the Internal Financial Controls with reference to theaforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tostandalone financial statements of TTK Prestige Limited ("the Company") as of 31March 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date
Management's Responsibility for Internal Financial Controls
The Company's management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal controlwith reference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013 (hereinafter referred to as "the Act").
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls with reference to financial statements. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements were established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlsassessing 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 standalone financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to financial statements.
Meaning of Internal Financial Controls with reference to standalonefinancial statements.
A Company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to financial statements includes those policies andprocedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference tostandalone financial statements.
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2021 based on the internalcontrol with reference to financial statements criteria established by the 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.
For PKF Sridhar & Santhanam LLP
Chartered Accountants Firm's Registration No.003990S/S200018
Signature M. Seethalakshmi Partner
Membership No. 208545
ICAI UDIN: 21208545AAAADU4187