TO THE MEMBERS OF TYCHE INDUSTRIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of M/s TYCHE INDUSTRIES LIMITED("the Company") which comprise of the Balance Sheet as at March 31 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
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 positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended.
This responsibility also includes maintenance of 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
The comparative financial information of the Company for the Financial Year ended 31stMarch 2017 prepared with Indian Accounting Standards included in the aforesaidFinancial Statements under report have been audited by the previous Auditors. The Reportof the previous auditors on such Comparative Financial Information dated 30-05-2017 isunmodified.
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 2018 and its profits and its Cash Flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors' Report) Order 2016 ("The Order")as amended issued by the Central Government of India in terms of sub-section 11 of Section143 of the Act we give in the Annexure-"A" to this report a Statement on thematters specified in Paragraph 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 explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss (including the othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Indian Accounting Standards)) Rules 2015;
e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate Report of even date given in Annexure B' to this Report".
g) 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 has disclosed the impact of pending litigations on its financialposition in its financial statements.
(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
ANNEXURE "A"TO THE INDEPENDENT AUDITORS' REPORT
With reference to the annexure referred to in our Independent Auditors Report to themembers of the Company on the financial statements for the year ended 31-03-2018 wereport that:
I. a) The Company has maintained proper records showing broad particulars includingquantitative details and situation of fixed assets on the basis of available information.However the fixed assets register is to be updated.
b) As explained to us by the management majority of the fixed assets have beenphysically verified in a broad manner by the management in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. We are informed that no material discrepancies were noticed on such physicalverification.
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 Immovable properties of thecompany are held in the name of the company.
ii. The Inventories have been physically verified during the year by the management inrespect of majority of the high value items at reasonable intervals. In our opinion thefrequency of such verification is reasonable. The discrepancies if any have beenproperly dealt with in the books of account.
iii. The company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act.
iv. As per the information and explanations furnished to us by the management thecompany has not given any loans; made investments; given guarantees to any company towhich the provisions of section 185 and 186 of the companies Act 2013 are applicable.
v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the CARO 2016 are not applicable to the Company.
vi. The Company has maintained cost records which prima facie appear to broadly meetthe requirements prescribed by the Central Government U/s.148(1) of the Companies Act2013 read with Companies (Cost Records and Audit) Rules 2014. However the contents ofthese accounts and records have not been examined by us in detail.
vii. a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustoms Duty of Excise Value Added Tax Cess and other statutory dues have beengenerally regularly deposited with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect of theaforesaid dues were outstanding as at 31-03-2018 for a period of more than six months fromthe date they became payable.
b) We have been informed by the management that there are no pending disputes with theappropriate authorities relating to Statutory Dues and those dues outstanding for a periodof more than six months from the date they became payable other than those referred to inPoint No.Q of "Notes to Financial Statements for the year ended March 31st 2018.
viii. As per the information and explanations given to us the company has notdefaulted in repayment of dues to the Banks or Government. The Company has not made anyborrowings from the financial institutions or debenture holders.
ix. During the year under review the company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments). The company hasnot availed any fresh term loans.
x. On the basis of our examination and according to the information and explanationsfurnished to us by the management no fraud by the company or on the company by itsofficers or employees has been noticed or reported.
xi. As per the information and explanations furnished to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V of the companies Act.
xii. The company is not a Nidhi Company and accordingly provisions of clause (xii) ofPara 3 of the order are not applicable to the company.
xiii. As per the information and explanations furnished to us and based on our auditin our opinion all the transactions with the related parties are in compliance withprovisions of section 177 and 188 of the Companies Act 2013 and the details have beendisclosed in the financial statements as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the period and accordingly the provisionsof clause (xiv) of para 3 of the order are not applicable to the company.
xv. As per the information and explanations given to us and based on our audit thecompany has not entered into any non-Cash transactions with directors or persons connectedwith him. Hence compliance with provisions of clause (xv) of para 3 of the order are notapplicable to the company.
xvi. As per the information and explanations given to us and based on our audit thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
Annexure B to Independent Auditors Report dated 30.05.2018 issued to the Membersof M/s Tyche Industries Limited
Report on the Internal Financial controls Over Financial reporting in terms of clause(i) of sub-section 3 of section 143 of the Companies Act 2013 ( The Act)
We have Audited the Internal Financial controls Over financial Reporting of M/s TYCHEINDUSTRIES LIMITED ("the company") as of March 31st 2018 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.
1) Managements Responsibility for Internal financial controls
The company Management is responsible for establishing and maintaining Internalfinancial controls based on "the internal control Over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on audit of Internal Financial controls over Financial Reportingissued 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 Companies Act 2013.
2) 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 Companies Act 2013 to the extentapplicable to an audit of Internal financial controls both applicable to an audit ofinternal financial controls and both issued by ICAI of India. Those standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting 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 auditors judgement 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.
3) 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
I) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
ii) 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
iii) 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.
4) 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedure may deteriorate.
In our opinion the company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal financial control stated in the Guidance Note onAudit of Internal financial controls over financial reporting issued by the institute ofChartered Accountants of India.
| ||For SURYAM & CO. |
| ||Chartered Accountants |
| ||(FRN : 012181S) |
| ||Sd/- |
| ||(SRINIVAS OLETI) |
|Place : Hyderabad ||Partner |
|Date : 30-05-2018 ||ICAI M.No.206457 |