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Tyroon Tea Company Ltd.

BSE: 526945 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE945B01016
BSE 00:00 | 18 Jun 68.00 -0.75
(-1.09%)
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65.60

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68.75

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NSE 05:30 | 01 Jan Tyroon Tea Company Ltd
OPEN 65.60
PREVIOUS CLOSE 68.75
VOLUME 792
52-Week high 79.90
52-Week low 22.00
P/E 3.47
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 65.60
CLOSE 68.75
VOLUME 792
52-Week high 79.90
52-Week low 22.00
P/E 3.47
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tyroon Tea Company Ltd. (TYROONTEACO) - Auditors Report

Company auditors report

To the Members of TYROON TEA COMPANY LIMITED Report on the Audit of the FinancialStatements Opinion

We have audited the Ind AS Financial Statements of Tyroon Tea Company Limited("the Company") which comprise the Balance sheet as at March 31 2020 and thestatement of Profit and Loss (including other comprehensive income) statement of changesin equity and statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (herein referred to as "financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 its Loss (financial performanceincluding other comprehensive income) changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

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.

We have determined the matter described below to be the key audit matter to becommunicated in our report.

The Key Audit Matter How the matter was addressed in our audit
Determination of fair value of biological assets and agricultural produce as at the year ended March 31 2020 We understood and tested the design and operating effectiveness of controls as established by the management in determination of the fair value of biological assets and agricultural produce used in the production of finished goods (Made Tea).
(Refer to the accompanying note no. 11 & 12 forming integral part of the Financial Statements)
As on March 31 2020 the Company has biological assets with the carrying value of Rs. NIL and finished goods of made tea produced from green leaves harvested from own gardens ("agricultural produce") & finished goods of made tea produced from bought green leaves with carrying value of Rs. 23.91 lakhs. We considered various factors including the actual selling price prevailing around and subsequent to the year end including technical factors stated by management which determine the quality and hence the fair value of biological assets.
The biological assets and agricultural produce used in the production of finished goods (Made Tea) are stated at fair value less costs to sell. Such Inventory of Made Tea is carried at the lower of cost and net realizable value. Based on the above procedures performed the management's determination of the fair value of biological assets and agricultural produce used in the production of finished goods (Made Tea) .as at the year-end and comparison with net realisable value of inventory is considered to be reasonable.
We considered the valuation of biological assets and agricultural produce used in the production of finished goods (Made Tea) as a key audit matter given the significant judgement involved in the consideration of factors used in the determination of fair value of such agricultural produce.
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 116 "Leases"
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet unless the lease term is 12 months or less or the underlying asset has a low value. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. Our audit procedures on adoption of Ind AS 116 include:
• Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116).
• Assessed the Company's evaluation on the identification of lease based on the contractual agreements and our knowledge of the business.
• Involved our specialists to evaluate the reasonableness of the discount rates applied in determining the lease liabilities
• Upon transition as at 1 April 2019:
Additionally the standard mandates detailed disclosures in respect of transition. => Evaluated the method of transition and related adjustments.
As described in Note no. 5 to the financial statements the Company has adopted Ind AS 116 Leases (Ind AS 116) in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company's has of leases with different contractual terms => Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and lease liabilities.
• On a statistical sample we performed the following procedures:
=> Assessed the key terms and conditions of lease with the underlying lease contracts; and
=> Evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.

Emphasis of Matter

We draw attention to note no. 39.10 of the financial statements which explains themanagement's assessment that there is no significant impact of COVID-19 pandemic on thefinancial statements for the year ended 31st March 2020. Further the company willcontinue to closely monitor any material changes arising from future economic conditionsand impact on its business.

Our opinion is not modified in respect of this matter.

Other Matter

Due to the COVID-19 pandemic nationwide lockdown and other travel restrictions areimposed by the Government/local administration hence the audit processes were carriedout electronically by remote access. The necessary records were made available by themanagement through digital medium and were accepted as audit evidence while reporting forthe current period.

Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditors' Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon. Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs ( financial position) profit orloss ( financial performance including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under Section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

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 SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct 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 reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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 thefinancial 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 reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) 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 other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on April1 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

g) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare required to be commented upon by us.

h) With respect to the other matters to be included in the Auditors' 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 does not have any pending litigation which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives 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 K.N.GUTGUTIA & Co.

Chartered Accountants

Firm Registration No.:304153E
Place: Kolkata KCSHARMA
Date: July 24 2020

Partner

Membership No: 50819
UDIN: 20050819AAAACY5179

"ANNEXURE A" TO THE AUDITOR'S REPORT OF EVEN DATE:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets/Property plant and Equipment.

b) The Fixed assets/ Property plant and Equipment of the company were physicallyverified by the Management according to phased program of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsbusiness. Discrepancies noticed on such verifications were not material and have beenproperly dealt with in the books of accounts.

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 areheld in the name of the Company except in case of one Flat which is under process.

ii. As explained to us the inventories of the Company except materials lying with thethird parties have been physically verified by the management at reasonable intervalsduring the year / at the year-end. In our opinion and according to the information andexplanations given to us the frequency of the verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material.

iii. The Company has granted an unsecured loan to a company covered in the registermaintained under section 189 of the Companies Act 2013.

a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest.

b) The schedule of repayment of principal and payment of interest has been stipulatedand the repayment of principal is not due.

c) The total amount of interest amounting to Rs. 39.04 lakhs (net of TDS) is overduefor more than 90 days. The Company has taken reasonable steps to realise the amount andthe same has since been realised.

iv. 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 Act with respectto the loans and investments made.

v The Company has not accepted any deposits from public covered under Sections 73 to 76or any other relevant provisions of the Act and rules framed thereunder.

vi. According to the information and explanations given to us the maintenance of costrecords under Section 148(1) of the Act has not been prescribed and as such paragraph3(vi) of the Order is not applicable to the Company.

vii. a) According to the information and explanations given to us during the year theCompany has

generally been regular in depositing to the appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax goods and service tax service tax duty of Customs duty of excise valueadded tax cess and other statutory dues as applicable to it. However according to theinformation and explanations given to us there is no undisputed amounts payable inrespect of these which were in arrears as on 31st March 2020 for a period of more than sixmonths from the date they became payable

b) According to the information and explanation given to us there is no amount whichhas not been deposited on account of any dispute in respect of Income Tax Sales TexGoods and Service Tax Custom Duty Excuse Duty Value-added Tax and Cess.

viii. In our opinion and on the basis of information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions and banks. Thecompany has not issued any debentures.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). As per the information and explanation given tous the Company has not availed fresh term loan during the year.

x Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the company and no fraud on the company by itsofficers or employees has been noticed or reported during the course of audit.

xi. The managerial remuneration has been paid or provided by the company in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV to the companies Act 2013.

xii. The company is not a Nidhi company and hence reporting under clause (xii) of theCompanies (Auditors Report) Order 2016 is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the Ind As financial statements asrequired 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 year under review and hence clause3(xiv) of the Companies (Auditor's Report) Order 2016 is not applicable.

xv The Company has not entered into non-cash transactions with directors or personsconnected with him during the year. Accordingly paragraph 3(xv) of the Companies(Auditor's Report) Order 2016 is not applicable.

xvi. The company is not a non-banking financial company and hence the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For K.N.GUTGUTIA & Co.

Chartered Accountants

Firm Registration No.:304153E
Place: Kolkata KCSHARMA
Date: July 24 2020

Partner

Membership No: 50819
UDIN: 20050819AAAACY5179

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF TYROON TEA COMPANY 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 TYROON TEACOMPANY LIMITED ("the Company") as at March 31 2020 in conjunction with ouraudit of the Ind As 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 Ind As 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 Ind As financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind Asfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind Asfinancial 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 March 31 2020 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 K.N.GUTGUTIA & Co.

Chartered Accountants

Firm Registration No.:304153E
Place: Kolkata KCSHARMA
Date: July 24 2020

Partner

Membership No: 50819
UDIN: 20050819AAAACY5179