Tyche Industries Ltd.
|BSE: 532384||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE443B01012|
|BSE 00:00 | 18 Jun||215.30||
|NSE 05:30 | 01 Jan||Tyche Industries Ltd|
|Mkt Cap.(Rs cr)||221|
|Mkt Cap.(Rs cr)||220.68|
Tyche Industries Ltd. (TYCHEINDUSTRIES) - Auditors Report
Company auditors report
TO THE MEMBERS OF TYCHE INDUSTRIES LIMITED
We have audited the accompanying financial statements of TycheIndustries Limited ("the Company") which comprise the Balance Sheet as at March31 2020 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind-AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31stMarch 2020 and its profit (financial performance including other comprehensive income)changes in equity and its cash flows for the year ended on that date.
Basis for Opinion:
We conducted our audit of the financial statements in accordance withthe Standards 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 Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence obtained by us is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.
KEY AUDIT MATTERS:
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.
We draw attention to the following matter of the company
A) Revenue Recognition
Refer to Note 2.2.(A) Of the summary of significant accounting policiesto the financial statements.
Revenue from sale of goods is recognized when a promise in a customercontract (performance obligation) has been satisfied by transferring control over thepromised goods to the customer.
Control is usually transferred upon shipment delivery to upon receiptof goods by the customer in accordance with the delivery and acceptance terms agreed withthe customers. We consider a risk of misstatement of the Financial Statements related totransactions occurring close to the year end as these transactions could be recorded inthe incorrect financial period (cut-off). Our tests of detail on cut-off samples wereenhanced accordingly and to verify that only revenue pertaining to current year isrecognized based on terms and conditions set out in sales contracts and deliverydocuments performing testing on selected statistical samples of revenue transactionsrecorded during the year. Our opinion is not modified in this regard.
The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in thecompany's annual report but does not include the financial statements and ourauditors' report thereon. The Company's annual report is expected to be madeavailable to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the otherinformation and we do not express any assurance and conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.
MANAGEMENT'S and BOARD OF DIRECTORS' RESPONSIBILITY FOR THEFINANCIAL STATEMENTS:
The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance. Changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in India includingthe Indian Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the Management and Board ofDirectors 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 the Board of Directors either intends to liquidate thecompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thefinancial 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 based on these financial statements.
As part of an audit in accordance with standards on auditing weexercise professional judgment and maintain professional scepticism throughout the audit.We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit 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 with reference to financial statements inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by Management andBoard of Directors.
Conclude on the appropriateness of management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:
As required by the Companies (Auditors' Report) Order 2016 ("TheOrder") issued by the Central Government of India in terms of sub-section 11 ofSection 143 of the Act we give in the Annexure-A a Statement on the matters specified inParagraph 3 and 4 of 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 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 have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Profit and Loss Statement the Statement ofChanges in Equity and the Cash Flow Statement dealt with by this Report are in agreementwith the books of account.
d) In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Indian Accounting Standards) Rules 2015 except with regard to the complianceto certain disclosure requirements there under.
e) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director interms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto 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 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations as at31st March 2020 on its financial position in its financial Statements.
ii. The Company does not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses
Further with respect to the matter to be included in the AuditorsReport under section 197(16):
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.
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT Dt.27-05-2019 issuedto the members of Tyche Industries Limited
Statement on the matters specified in Paragraphs 3 & 4 of theCompanies (Auditors Report) Order 2016
i. a) The Company has maintained proper records showing broadparticulars including quantitative details and situation of fixed assets on the basis ofavailable information.
However the fixed assets register is to be updated.
b) As per the information and explanations furnished to us by themanagement majority of the fixed assets have been physically verified in a broad mannerby the management in a phased manner which in our opinion is reasonable having regard tothe size of the Company and nature of its assets. We are informed that no materialdiscrepancies were noticed on such verification. However proper adjustments in the booksof account were made for the discrepancies noticed on such verification.
c) As per the information and explanations furnished to us by themanagement the title deeds 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 inthe books of account. iii. As per the information and explanations furnished to us by themanagement and as per the books of account and other documents examined by us the companyhas not granted any loans secured or unsecured to companies firms limited partnershipsor other parties covered in the register maintained under Section 189 of the CompaniesAct 2013.
iv. As per the information and explanations furnished to us by themanagement and as per the books of accounts and other documents examined by us thecompany has not given any loans made investments given guarantees securities to theparties to which provisions of Sections 185 and 186 of the Companies Act 2013 areapplicable.
v. According to the information and explanations given to us theCompany has not accepted deposits to which the directives issued by the Reserve Bank ofIndia and the provisions of Section 73 to 76 or the other relevant provisions of theCompanies Act and the rules framed there under wherever applicable from the public.
vi. As per the information and explanations furnished to us primafacie it appears that the company broadly meets the requirement prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 read with Companies (CostRecords and Audit) Rules 2014. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.
vii. a) As per the information and explanations furnished to us by themanagement according to the records examined by us of the Company undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax GST Service Taxduty of Customs Duty of Excise Value Added Tax Cess and other statutory dues have beengenerally deposited on time with the appropriate authorities. According to the informationand explanations given to us no other undisputed amounts due and payable in respect ofthe aforesaid dues were outstanding as at 31-03-2020 for a period of more than six monthsfrom the date they became payable.
b) As per the information and explanations furnished to us by themanagement there are no disputes with the appropriate authorities relating to Statutorydues other than those referred to in Point No.27 of "Notes to Financial Statementsfor the year ended March 31st 2020.
viii. In our opinion and as per the information and explanations givento us the company did not have any dues to any financial institution bank governmentor debenture holder during the year. ix. During the year the company has not raised anymonies by way of initial public offer or further public offer (including debtinstruments). The company has not availed any fresh Term Loans. Accordingly paragraph3(ix) of the Order is not applicable to the company.
x. During the course of our examination of the books and records of thecompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.
xi. As per the information and explanations given to us by themanagement and based on our examination of the records of the company the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.
xii. The Company is not a Nidhi company and the Nidhi Rules 2014 arenot applicable to it.
Accordingly the provisions of Clause (xii) of para 3 of the order arenot applicable to the company.
xiii. As per the information and explanations given to us and based onour audit in our opinion the transactions with the related parties are in compliancewith sections 177 and 188 of Companies Act 2013 where applicable and the details havebeen disclosed in the Financial Statements etc. as required by the applicable IndianAccounting Standards.
xiv. Based on our examination of the records of the Company andaccording to the information and explanations given to us the Company has not made anypreferential allotment or private placement of shares or fully or partly paid convertibledebentures during the year.
Accordingly reporting under clause 3 (xiv) of the Order is notapplicable to the Company. xv. As per the information and explanations given to us andbased on our examination of the company records the company has not entered into anynon-cash transactions with directors or persons connected with them. Hence compliancewith the provisions of clause (xv) of para 3 of the order are not applicable to theCompany. xvi. As per the information and explanations given to us and based on ourexamination of the records of the company the company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions ofClause (xvi) of para 3 of the order are not applicable to the company.
Annexure-B to the Independent Auditors' Report of even date on theFinancial Statements of Tyche Industries Limited
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") :
(Referred to in clause (f) of paragraph 2 under Report on otherLegal and Regulatory Requirements' section of our report of even date)
We have audited the internal financial controls over financialreporting of Tyche Industries Limited ("the Company") as of 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
In our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2020 basedon the internal control over financial reporting 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.
Management's Responsibility for Internal Financial Controls
The Company's management and the Board of Directors areresponsible for establishing and maintaining internal financial controls 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. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls over financial reporting both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting:
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures 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 over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.