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Tyche Industries Ltd.

BSE: 532384 Sector: Industrials
NSE: N.A. ISIN Code: INE443B01012
BSE 00:00 | 10 Jul 153.60 25.15
(19.58%)
OPEN

130.00

HIGH

154.10

LOW

130.00

NSE 05:30 | 01 Jan Tyche Industries Ltd
OPEN 130.00
PREVIOUS CLOSE 128.45
VOLUME 172278
52-Week high 154.10
52-Week low 35.95
P/E 8.97
Mkt Cap.(Rs cr) 157
Buy Price 154.10
Buy Qty 3369.00
Sell Price 154.10
Sell Qty 455.00
OPEN 130.00
CLOSE 128.45
VOLUME 172278
52-Week high 154.10
52-Week low 35.95
P/E 8.97
Mkt Cap.(Rs cr) 157
Buy Price 154.10
Buy Qty 3369.00
Sell Price 154.10
Sell Qty 455.00

Tyche Industries Ltd. (TYCHEINDUSTRIES) - Auditors Report

Company auditors report

TO THE MEMBERS OF TYCHE INDUSTRIES LIMITED

OPINION :

We have audited the accompanying financial statements of Tyche Industries Limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind-AS specifiedunder Section 133 of the Act of the state of affairs (financial position) of the Companyas at 31st March 2019 and its profit (financial performance including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion :

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis 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 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 not specifically found any matters to be considered as key audit matters to becommunicated in our report.

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 specified under Section 133 of the Act read with Companies(Indian Accounting Standards) 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.

AUDITORS' RESPONSIBILITY :

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 standards on auditing we exercise professionaljudgment and maintain 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)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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.

• 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 ourauditors' 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 :

As required by the Companies (Auditors' Report) Order 2016 ("The Order")issued by the Central Government of India in terms of sub-section 11 of Section 143 of theAct we give in the Annexure-A a Statement on the matters specified in Paragraph 3 and 4of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that :

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) In 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 Profit and Loss Statement the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

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(Indian Accounting Standards) Rules 2015 except with regard to the compliance to certaindisclosure requirements there under.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct.

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 in "Annexure-B".

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 as amended 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 on its financialposition in its Financial Statements.

(ii) The Company does 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.

For SURYAM & CO.
Chartered Accountants
(FRN : 012181S)
SD/-
(SRINIVAS OLETI)
Place : Hyderabad Partner
Date :27-05-2019. ICAI M.No.206457

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

Dt.27-05-2019 issued to the members of Tyche Industries Limited

Statement on the matters specified in Paragraphs 3 & 4 of the Companies (AuditorsReport) Order 2016

(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 per the information and explanations furnished to us by the management majorityof the fixed assets have been physically verified in a broad manner by the management in aphased manner which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. We are informed that no material discrepancies werenoticed on such verification pending adjustment.

c) As per the information and explanations furnished to us by the management the titledeeds of immovable properties are held in the name of the company.

(ii) The physical verification of inventories has been conducted during the year by themanagement in respect of majority of the high value items at reasonable intervals. In ouropinion the frequency of such verification is reasonable.

The discrepancies that were noticed have been properly dealt with in the books ofaccount.

(iii) As per the information and explanations furnished to us by the management and asper the books of account and other documents examined by us the company has not grantedany loans secured or unsecured to companies firms limited partnerships or other partiescovered in the register maintained under Section 189 of the Companies Act 2013.

(iv) As per the information and explanations furnished to us by the management and asper the books of accounts and other documents examined by us the company has not givenany loans made investments given guarantees securities to the parties to whichprovisions of Sections 185 and 186 of the Companies Act 2013 are applicable.

(v) According to the information and explanations given to us the Company has notaccepted deposits to which the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 or the other relevant provisions of the Companies Act andthe rules framed there under wherever applicable from the public.

(vi) As per the information and explanations furnished to us prima facie it appearsthat the company broadly meets the requirement prescribed by the Central Government undersection 148(1) of the Companies Act 2013 read with Companies (Cost Records and Audit)Rules 2014. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) a) As per the information and explanations furnished to us by the managementaccording to the records of the Company undisputed statutory dues including ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax duty of CustomsDuty of Excise Value Added Tax Cess and other statutory dues have been generallydeposited with the appropriate authorities. According to the information and explanationsgiven to us no other undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31-03-2019 for a period of more than six months from the date theybecame payable.

(b) As per the information and explanations furnished to us by the management thereare no disputes with the appropriate authorities relating to Statutory Dues and those duesoutstanding for a period of more than six months from the date they became payable otherthan those referred to in Point No.Q of "Notes to Financial Statements for the yearended March 31st 2019." (viii) As per the information and explanations given to usthe company has not defaulted in repayment of loans or borrowings to the Banks orGovernment. The company has not made any borrowings from the financial institutions ordebenture holders.

(ix) During the year the company has not raised money by way of initial public offer orfurther public offer (including debt instruments). The company has not availed any freshTerm Loans.

(x) During the year under review 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 given to us by the management themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

(xii) The Company is not a Nidhi company. Hence Clause (xii) is not applicable to thecompany. (xiii) As per the information and explanations given to us and based on ouraudit in our opinion the transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable Indianaccounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

(xv) As per the information and explanations and based on audit the company has notentered into any non-cash transactions with directors or persons connected with them.Hence compliance with the 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.

For SURYAM & CO.
Chartered Accountants
(FRN : 012181S)
SD/-
(SRINIVAS OLETI)
Place : Hyderabad Partner
Date :27-05-2019. ICAI M.No.206457

Annexure-B to the Independent Auditors' Report of even date on the Financial Statementsof Tyche Industries Limited

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 TycheIndustries Limited ("the Company") as of 31st March 2019 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 the Institute ofChartered Accountants of India and deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. 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 controlsover financial 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 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 judgment 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 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 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 authorisations 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.

Opinion :

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 2019 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SURYAM & CO.
Chartered Accountants
(FRN : 012181S)
SD/-
(SRINIVAS OLETI)
Place : Hyderabad Partner
Date :27-05-2019. ICAI M.No.206457