Mar 31, 2018
We have audited the accompanying financial statements of M/s TYCHE INDUSTRIES LIMITED (âthe Companyâ), which comprise of the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OTHER MATTER:
The comparative financial information of the Company for the Financial Year ended 31st March, 2017, prepared with Indian Accounting Standards, included in the aforesaid Financial Statements under report, have been audited by the previous Auditors. The Report of the previous auditors on such Comparative Financial Information dated 30-05-2017 is unmodified.
OPINION:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 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 (Auditorsâ Report) Order, 2016 (âThe Orderâ), as amended issued by the Central Government of India in terms of sub-section 11 of Section 143 of the Act, we give in the Annexure-âAâ to this report a Statement on the matters 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including the other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards 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 March 31, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report of even date given in âAnnexure Bâ to this Reportâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its financial statements.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE ââAâTO THE INDEPENDENT AUDITORSâ REPORT
With reference to the annexure referred to in our Independent Auditors Report to the members of the Company on the financial statements for the year ended 31-03-2018, we report that:
I. a) The Company has maintained proper records showing broad particulars including quantitative 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 been physically verified in a broad manner by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. We are informed that no material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the company the title Deeds of Immovable properties of the company are held in the name of the company.
ii. The Inventories have been physically verified during the year by the management, in respect of majority of the high value items at reasonable intervals. In our opinion, the frequency of such verification is reasonable. The discrepancies, if any, have been properly dealt with in the books of account.
iii. The company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
iv. As per the information and explanations furnished to us by the management the company has not given any loans; made investments; given guarantees to any company to which 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 not accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the CARO, 2016 are not applicable to the Company.
vi. The Company has maintained cost records, which, prima facie, appear to broadly meet the requirements prescribed by the Central Government U/s.148(1) of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014. However, the contents of these accounts and records have not been examined by us in detail.
vii. a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31-03-2018 for a period of more than six months from the date they became payable.
b) We have been informed by the management that there are no pending disputes with the appropriate authorities relating to Statutory Dues and those dues outstanding for a period of more than six months from the date they became payable other than those referred to in Point No.Q of âNotes to Financial Statements for the year ended March, 31st 2018.
viii. As per the information and explanations given to us, the company has not defaulted in repayment of dues to the Banks or Government. The Company has not made any borrowings from the financial institutions or debenture holders.
ix. During the year under review, the company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). The company has not availed any fresh term loans.
x. On the basis of our examination and according to the information and explanations furnished to us by the management, no fraud by the company or on the company by its officers or employees has been noticed or reported.
xi. As per the information and explanations furnished to us, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by 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) of Para 3 of the order are not applicable to the company.
xiii. As per the information and explanations furnished to us and based on our audit, in our opinion, all the transactions with the related parties are in compliance with provisions of section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period and accordingly the provisions of 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, the company has not entered into any non-Cash transactions with directors or persons connected with him. Hence, compliance with provisions of clause (xv) of para 3 of the order are not applicable to the company.
xvi. As per the information and explanations given to us and based on our audit, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 TYCHE INDUSTRIES LIMITED (âthe companyâ) as of March 31st 2018 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
1) Managements Responsibility for Internal financial controls
The company Management is responsible for establishing and maintaining Internal financial controls based on âthe internal control Over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial controls over Financial Reporting issued by the Institute of chartered accountants of Indiaâ( ICAI). These responsibilities include the design, implementation and Maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
2) Auditors Responsibility
Our responsibility is to express an opinion on the companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial controls Over financial reporting (âthe Guidance Noteâ) and the standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal financial controls, both applicable to an audit of internal financial controls and, both issued by ICAI of India. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the companyâs internal financial controls system over financial reporting.
3) Meaning of Internal Financial controls over Financial reporting
A companyâs Internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
5) Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the company considering the essential components of internal financial control stated in the Guidance Note on Audit of Internal financial controls over financial reporting issued by the institute of Chartered Accountants of India.
For SURYAM & CO.
Chartered Accountants
(FRN : 012181S)
Sd/-
(SRINIVAS OLETI)
Place : Hyderabad, Partner
Date : 30-05-2018 ICAI M.No.206457
Mar 31, 2016
INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF TYCHE INDUSTRIES LIMITED REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Tyche Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Profit and Loss Statement, the Cash Flow Statement for the year then ended and a summary of significant 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, 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 Section 143 of the Act, we give in the Annexure-"A" a Statement on the matters 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 best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the directors as on March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in Annexure B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its financial statements-Refer to Note No.1(q) to the financial statements.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
With reference to the annexure referred to in our Independent Auditors Report to the members of the Company on the financial statements for the year ended 31-03-2016, we report that:
i. a) The Company has maintained proper records showing broad particulars including quantitative 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 the fixed assets have been physically verified in a broad manner by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. We are informed that no material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the company the title Deeds of Immovable properties of the company are held in the name of the company.
ii. The Inventories have been physically verified during the year by the management, in respect of majority of the high value items at reasonable intervals. In our opinion, the frequency of such verification is reasonable. The discrepancies, if any, have been properly dealt with in the books of account.
iii. The company had granted in the earlier year an unsecured loan to a limited company, outstanding at Rs.0.41 Crores (Previous year Rs.0.55 Crores), coming under the purview of Section 189 of the Companies Act, 2013. No specific repayment program had been fixed earlier for the repayment of the said Unsecured Loan and the interest on the same is repaid on a yearly basis in a regular manner. The company has not granted any loans, secured or unsecured to firms, limited liability partnerships or other parties covered in the register maintained U/s 189 of the companies Act.
iv. The company has not given any loans; made investments; given guarantees to the parties to which 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 not accepted any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the CARO, 2016 are not applicable to the Company.
vi. The Company has maintained cost records, which, prima facie, appear to broadly meet the requirements prescribed by the Central Government U/s.148(1) of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014. However, the contents of these accounts and records have not been examined by us in detail.
vii. a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31-03-2016 for a period of more than six months from the date they became payable.
b) We have been informed by the management that there are no pending disputes with the appropriate authorities relating to Statutory Dues and those dues outstanding for a period of more than six months from the date they became payable other than these shown below:
Financial Years (Asst year) |
Nature |
Amount (Rs in lakhs) |
Forum where dispute is Pending with |
2013-2014(2014-2015) |
Refund of Excise duty |
23.33 |
Appeal with CCE ( Appeals) |
2009-2010 (2010-2011) |
Income Tax demand |
13.08 |
Representation for rectification filed with DCIT. |
2011-2012(2012-2013) |
Income Tax Demand |
17.11 |
Appeal lying with CIT( Appeals) |
viii. As per the information and explanations given to us, the company has not defaulted in repayment of dues to the Banks or Government. The Company has not made any borrowings from the financial institutions or debenture holders.
ix. During the year under review, the company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). The company has not availed any fresh term loans.
x. On the basis of our examination and according to the information and explanations furnished to us by the management, no fraud by the company or on the company by its officers or employees has been noticed or reported.
xi. As per the information and explanations furnished to us, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by 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) of Para 3 of the order are not applicable to the company.
xiii. As per the information and explanations furnished to us and based on our audit, in our opinion, all the transactions with the related parties are in compliance with provisions of section 177 and 188 of the companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the period and accordingly the provisions of 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 , the company has not entered into any non- Cash transactions with directors or persons connected with him. Hence, compliance with provisions of clause (xv) of para 3 of the order are not applicable to the company.
xvi. As per the information and explanations given to us and based on our audit, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
We have Audited the Internal Financial controls Over financial Reporting of M/s TYCHE INDUSTRIES LIMITED ("the company") as of March 31st 2016 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.
1) Managements Responsibility for Internal financial controls
The company Management is responsible for establishing and maintaining Internal financial controls based on "the internal control Over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on audit of Internal Financial controls over Financial Reporting issued by the Institute of chartered accountants of India"( ICAI). These responsibilities include the design, implementation and Maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
2) Auditors Responsibility
Our responsibility is to express an opinion on the company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial controls Over financial reporting (" the Guidance Note") and the standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal financial controls, both applicable to an audit of internal financial controls and, both issued by ICAI of India. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company''s Internal financial controls system over financial reporting.
3) Meaning of Internal Financial controls over Financial reporting
A company''s Internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.
5) Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the company considering the essential components of internal financial control stated in the Guidance Note on Audit of Internal financial controls over financial reporting issued by the institute of Chartered Accountants Of India.
For PS.N.RAVISHANKER & ASSOCIATES
Chartered Accountants (FRN: 003228S)
Sd/-
(P. RAVI SHANKER)
Place : Hyderabad, Partner
Date : 30-05-2016. ICAI M.No.025288
Mar 31, 2015
We have audited the accompanying financial statements of Tyche
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Profit and Loss Statement, the Cash Flow
Statement for the year then ended and a summary of significant
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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whetherdue to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
OPINION :
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profits and its Cash Flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors' Report) Order, 2015 ("The
Order"), issued by the Central Government of India in terms of
sub-section 11 of Section 143 of the Act, we give in the Annexure a
Statement on the matters specified in Paragraph 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 explanations
which to the best of 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 the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, formaterial foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT With reference to the
annexure referred to in our Independent Auditors Report to the members
of the Company on the financial statements for the year ended
31-03-2015, we report that :
i. In respect of its fixed assets:
a) The Company has maintained proper records showing broad particulars
including quantitative 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 the fixed assets have
been physically verified in a broad manner by the management in a
phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. We are
informed that no material discrepancies were noticed on such physical
verification.
ii. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management, in respect of majority of the high value items at
reasonable intervals. In our opinion, the frequency of such
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management, appears to be generally reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c) The Company is maintaining proper records of inventories. As per the
information and explanation given to us, no material discrepancies were
noticed on such verification.
iii. In respect of the loans :
The company had granted an unsecured loan to a limited company, in
which MD and WTD's Relative is a Director, outstanding at Rs.0.55
Crores (Previous year Rs.0.54 Crores), granted in the earlier years and
continuing in the current year, coming under the purview of Section 189
of the Companies Act, 2013. No specific repayment program had been
fixed earlier for the repayment of the said Unsecured Loan and the
interest on the same is repaid on an yearly basis in a regular manner.
iv. In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control system which,
Prima facie, appear to be commensurate with its size and the nature of
its business for the purchase of inventory and fixed assets and for the
sale of goods.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO, 2015 are not
applicable to the Company.
vi. The Company has maintained cost records, which, prima facie, appear
to broadly meet the requirements prescribed by the Central Government
U/s.148(1) of the Companies Act, 2013 read with Companies (Cost Records
and Audit) Rules, 2014. However, the contents of these accounts and
records have not been examined by us in detail.
vii. In respect of statutory dues :
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value
Added Tax, Cess and other statutory dues have been generally regularly
deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31-03-2015 for
a period of more than six months from the date they became payable.
b) We have been informed by the management that there are no pending
disputes with the appropriate authorities relating to Statutory Dues
and those dues outstanding for a period of more than six months from
the date they became payable.
c) According to the records of the Company, information and
explanations given to us, there are no amounts that are due to be
transferred to the Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
viii. The Company is registered for a period of more than 5 years,
there are no accumulated losses in the company as at 31-03-2015 and the
Company has not incurred cash losses during the financial year covered
by the audit and in the immediately preceding financial year.
ix. We are of the opinion that the Company has not defaulted in
repayment of dues to the Banks. The company has not made any borrowings
from the financial institutions or debenture holders.
x. As per the information and explanations furnished to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
xi. During the year the company has not availed any term loans.
xii. According to the information and explanations given to us, there
was no fraud on or by the company that has been noticed or reported
during the year by the Management.
For PS.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
FRN : 003228S
Sd/-
(P. RAVI SHANKER)
Place : Hyderabad, Partner
Date : 29-05-2015. ICAI M.No.025288
Mar 31, 2014
We have audited the accompanying financial statements of TYCHE
INDUSTRIES LIMITED which comprise of the Balance Sheet as at March
31st2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the companies Act 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation of the
financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectives of the company''s internal control . An
auditalso includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st 2014;
(b) in the case of the statement of Profit and Loss , of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
Account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act 2013 and,
e. on the basis of written representations received from the directors
as on March 31st 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
STATEMENT REFERRED TO IN THE AUDITORS REPORT
1 a) The Company is maintaining proper records which show broad
particulars including quantitative details and situation in respect of
the fixed assets. However the fixed Assets register is to be updated.
b) The fixed assets of the company have been broadly verified during
the year by the management at reasonable intervals we are informed that
no material discrepancies were noticed on such verification.
c) The company has not disposed off substantial part of its fixed
assets so as to affect the going concern concept.
2 a) As explained to us, Physical verification of inventory has been
conducted by the management during the year in respect of majority of
the high value items at reasonable intervals.
b) The procedures of physical verification of inventory followed by the
management appear to be generally reasonable and adequate in relation
to the size of the company and the nature of its business.
c) The company is maintaining proper records of inventory and we are
informed that no material discrepancies were noticed on Physical
verification.
3. As per the information and explanations furnished to us by the
management during the year the company has not granted any loans,
secured or unsecured, to the parties covered in the register maintained
under Section 301 of the Act. The Company has accepted unsecured loan
from the managing director of the company, covered in the register
maintained u/s 301 of the Act, amounting to Rs 102.00 Lacs( P.Y 102.00
Lacs). we are informed that the said unsecured loan does not carry any
interest and no specific repayment period is fixed in this regard and
the other terms and conditions prima facie do not appear to be
prejudicial to the interests of the company.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures existing in the company
with regard to purchase of Inventory and Fixed Assets and for the sale
of goods including processing charges, prima facie, appear to be
commensurate with the size of the company and the nature of its
business.
5. As per the information and explanations furnished to us by the
management during the year, there are no transactions that need to be
entered into the register in pursuance of Section.301of the Act.
6. As per the information and explanations furnished to us, the
Company has not accepted any deposits from the Public during the year
to which the directives issued by the Reserve Bank of India and the
provisions of Sec.58A and 58AA of the Act and the Rules framed there
under apply.
7. The company does not have any formal internal audit system during
the year. It has been explained to us that the internal control systems
existing in the company cover some of the internal audit aspects also.
8. The company has maintained the records, which broadly meet the
requirements of the Cost Records U/s.209 (1) (d) of the Companies Act,
1956. However, we have not examined the contents of these accounts and
records in detail.
9. The undisputed dues including Provident fund, Investor education
and protection fund, Employees State Insurance, Income-Tax, Sales tax,
Wealth tax, Custom duty, Excise duty, Cess and other statutory dues
have been deposited generally by the company during the year with the
appropriate authorities.
10. The company has been registered for period not less than 5 years
and there are no accumulated losses in the company as at 31.03.2014.
The company has not suffered cash losses during the current financial
year and in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. The
company has not raised any funds from financial institutions/debenture
holders.
12. During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. In our opinion and according to the information and explanations
given to us, the company is not a chit fund, Nidhi/ mutual benefit
fund/ society.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. As per the information and explanations furnished to us the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. During the year the company has not obtained any term loans.
17. The funds raised on short-term basis do not prima-facie appear to
have been used for long-term investment and vice versa.
18. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. The company has not issued any debentures.
20. The company has not raised money through public issue during the
year.
21. According to the information and explanations furnished to us,
during the year, there was no fraud on or by the company that has been
noticed or reported by the management..
For P.S.N. RAVISHANKER & ASSOCIATES
Chartered Accountants
Firm Reg No: 003228S
Sd/-
Place: Hyderabad (P. RAVISHANKER)
Date : 30-05-2014 Partner
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TYCHE
INDUSTRIES LIMITED which comprise of the Balance Sheet as at March
31st2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the ActÂ). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st 2013;
(b) in the case of the statement of Profit and Loss , of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
Account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956.
e. on the basis of written representations received from the directors
as on March 31st 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
STATEMENT REFERRED TO IN THE AUDITORS REPORT
1 a) The Company is maintaining proper records which show broad
particulars including quantitative details and situation in respect of
the fixed assets. However the fixed Assets register is to be updated.
b) The fixed assets of the company have been broadly verified during
the year by the management at reasonable intervals: we are informed
that no material discrepancies were noticed on such verification.
c) The company has not disposed off substantial part of its fixed
assets so as to affect the going concern concept.
2 a) As explained to us, Physical verification of inventory has been
conducted by the management during the year in respect of majority of
the high value items at reasonable intervals.
b) The procedures of physical verification of inventory followed by the
management appear to be generally reasonable and adequate in relation
to the size of the company and the nature of its business.
c) The company is maintaining proper records of inventory and we are
informed that no material discrepancies were noticed on Physical
verification.
3. As per the information and explanations furnished to us by the
management during the year the company has not granted any loans,
secured or unsecured, to the parties covered in the register maintained
under Section 301 of the Act. During the year the Company has accepted
unsecured loan from the managing director of the company, covered in
the register maintained u/s 301 of the Act, amounting to Rs 102.00
Lacs( P. Y 102.00 Lacs) we are informed that the said unsecured loan
does not carry any interest and no specific repayment period is fixed
in this regard and the other terms and conditions primafacie do not
appear to be prejudicial to the interests of the company.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures existing in the company
with regard to purchase of Inventory and Fixed Assets and for the sale
of goods including processing charges, prima facie, appear to be
commensurate with the size of the company and the nature of its
business.
5. As per the information and explanations furnished to us by the
management during the year, there are no transactions that need to be
entered into the register in pursuance of Section.301of the Act.
6. As per the information and explanations furnished to us, the
Company has not accepted any deposits from the Public during the year
to which the directives issued by the Reserve Bank of India and the
provisions of Sec.58A and 58AA of the Act and the Rules framed there
under apply.
7. The company does not have any formal internal audit system during
the year. It has been explained to us that the internal control systems
existing in the company cover some of the internal audit aspects also.
8. The company has maintained the records, which broadly meet the
requirements of the Cost Records U/s.209 (1) (d) of the Companies Act,
1956. However, we have not examined the contents of these accounts and
records in detail.
9. The undisputed dues including Provident fund, Investor education
and protection fund, Employees State Insurance, Income-Tax, Sales tax,
Wealth tax, Custom duty, Excise duty, Cess and other statutory dues
have been deposited generally by the company during the year with the
appropriate authorities.
10. The company has been registered for period not less than 5 years
and there are no accumulated losses in the company as at 31.03.2013.
The company has not suffered cash losses during the current financial
year and in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. The
company has not raised any funds from financial institutions/debenture
holders.
12. During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. In our opinion and according to the information and explanations
given to us, the company is not a chit fund, Nidhi/ mutual benefit
fund/ society.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. As per the information and explanations furnished to us the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. During the year the company has not obtained any term loans.
17. The funds raised on short-term basis do not prima-facie appear to
have been used for long-term investment and vice versa.
18. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. The company has not issued any debentures.
20. The company has not raised money through public issue during the
year.
21. According to the information and explanations furnished to us,
during the year, there was no fraud on or by the company that has been
noticed or reported by the management.
For P.S.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
Firm Reg No: 003228S
Sd/-
Place : Hyderabad, (P. RAVI SHANKER)
Date : 30-05-2013 Partner
Mar 31, 2012
We have audited the attached Balance Sheet of M/s TYCHE INDUSTRIES LTD
as at 31st March, 2012, the statement of Profit and Loss and cash flow
statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with audit standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
I. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-Section (4A) of
Section 227 of the Companies Act, 1956, we have enclosed a Statement on
the matters specified in paragraphs 4 and 5 of the said order.
II. Further to our statement referred to in paragraph 1 above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of accounts as referred by law have
been kept by the Company, so far as it appears from our examination of
those books.
c) The Balance Sheet and statement of Profit and Loss and cash flow
statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and statement of Profit and Loss
and the cash flow statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31-03-2012, and taken on record by the Board of directors, we
report that none of the directors is disqualified as on 31.03.2012 from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by Companies Act, 1956, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) In so far as it relates to the Balance Sheet of the state of affairs
of the company as at 31st March, 2012; and
ii) In so far as it relates to the statement of Profit & Loss of the
Profit for the year ended on that date.
iii) In so far as it relates to the cash flow statement, of the cash
flows for the year ended on that date.
STATEMENT REFERRED TO IN THE AUDITORS REPORT
1. a) The Company is maintaining proper records which show broad
particulars including quantitative
details and situation in respect of the fixed assets. However the fixed
Assets register is to be updated.
b) The fixed assets of the company have been broadly verified during
the year by the management at reasonable intervals: we are informed
that no material discrepancies were noticed on such verification.
c) The company has not disposed off substantial part of its fixed
assets so as to affect the going concern concept.
2. a) As explained to us, Physical verification of inventory has been
conducted by the management
during the year in respect of majority of the high value items at
reasonable intervals.
b) The procedures of physical verification of inventory followed by the
management appear to be generally reasonable and adequate in relation
to the size of the company and the nature of its business.
c) The company is maintaining proper records of inventory and we are
informed that no material discrepancies were noticed on Physical
verification.
3. As per the information and explanations furnished to us by the
management during the year the company has not granted any loans,
secured or unsecured, to the parties covered in the register maintained
under Section 301 of the Act.
During the year the Company has accepted unsecured loan from the
managing director of the company, covered in the register maintained
u/s 301 of the Act, amounting to Rs 102.00 Lacs ( P. Y NIL) we are
informed that the said unsecured loan does not carry any interest and
no specific repayment period is fixed in this regard and the other
terms and conditions. Prima facie, do not appear to be prejudicial to
the interests of the company.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures existing in the company
with regard to purchase of Inventory and Fixed Assets and for the sale
of goods including processing charges, prima facie, appear to be
commensurate with the size of the company and the nature of its
business.
5. As per the information and explanations furnished to us by the
management during the year, there are no transactions that need to be
entered into the register in pursuance of Section. 301 of the Act.
6. As per the information and explanations furnished to us, the
Company has not accepted any deposits from the Public during the year
to which the directives issued by the Reserve Bank of India and the
provisions of Sec. 58A and 58AA of the Act and the Rules framed there
under apply.
7. The company does not have any formal internal audit system during
the year. It has been explained to us that the internal control systems
existing in the company cover some of the internal audit aspects also.
8. The company has maintained the records, which broadly meet the
requirements of the Cost Records U/s.209 (1) (d) of the Companies Act,
1956. However, we have not examined the contents of these accounts and
records in detail.
9. The undisputed dues including Provident fund, Investor education
and protection fund, Employees State Insurance, Income-Tax, Sales tax,
Wealth tax, Custom duty, Excise duty, Cess and other statutory dues
have been deposited generally by the company during the year with the
appropriate authorities.
10. The company has been registered for period not less than 5 years
and there are no accumulated losses in the company as at 31.03.2012.
The company has not suffered cash losses during the current financial
year and in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to banks. The
company has not raised any funds from financial institutions/debenture
holders.
12. During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. In our opinion and according to the information and explanations
given to us, the company is not a chit fund, Nidhi/mutual benefit
fund/society.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. As per the information and explanations furnished to us the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. During the year the company has not obtained any term loans.
17. The funds raised on short-term basis do not prima-facie appear to
have been used for long-term investment and vice versa.
18. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. The company has not issued any debentures.
20. The company has not raised money through public issue during the
year.
21. According to the information and explanations furnished to us,
during the year, there was no fraud on or by the company that has been
noticed or reported by the management.
For P.S.N. RAVISHANKER & ASSOCIATES
Chartered Accountants
Firm Reg No: 003228S
Sd/-
(P. RAVISHANKER)
Partner
Place: Hyderabad
Date : 30-05-2012
Mar 31, 2010
We have audited the attached Balance Sheet of M/s TYCHE INDUSTRIES LTD
as at 31st March, 2010, the Profit and Loss Account and the cash flow
statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with audit standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
the by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
I. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-Section (4A) of
Section 227 of the Companies Act, 1956, we have enclosed a Statement on
the matters specified in paragraphs 4 and 5 of the said order.
II. Further to our statement referred to in paragraph 1 above, we
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of accounts as referred by law have
been kept by the Company, so far as it appears from our examination of
those books.
c) The Balance Sheet and Profit and Loss account and cash flow
statement dealt with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet and Profit and Loss Account and
the cash flow statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31-03- 2010, and taken on record by the Board of directors, we
report that none of the directors is disqualified as on 31.03.2010 from
being appointed as a director^ in terms of clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by Companies Act, 1956, in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i) In so far as it relates to the Balance Sheet of the state of
affairs of the company as at 31st March, 2010; and ii) In so far as it
relates to the Profit & Loss Account of the Profit for the year ended
on that date.
iii) In so far as it relates to the cash flow statement, of the cash
flows for the year ended on that date.
STATEMENT REFERRED TO IN THE AUDITORS REPORT
1 a) The Company has maintained proper records to show full particulars
including quantitative details and situation in respect of the fixed assets.
b) The fixed assets of the company have been broadly verified during
the year by the management and we are informed that no material
discrepancies were noticed on such verification.
c) The company has not disposed off substantial part of its fixed
assets.
2 a) As explained to us, Physical verification of inventories has been
conducted by the management during the year in respect of majority of the
high value items at reasonable intervals.
* b) The procedures of physical verification of inventory followed by
the management appear to be generally reasonable and adequate in
relation to the size of the company and the nature of its business.
c) The company is maintaining proper records of inventory and we are
informed that no material discrepancies were noticed on such Physical
verification.
3. During the year the company has not granted or taken secured/
unsecured loans to/from the parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, the internal control procedures existing in the company
with regard to purchase of Inventory and Fixed Assets and for the sale
of goods prima facie appear to be commensurate with the size of the
company and the nature of its business.
5. During the year, there are no transactions that need to be entered
into the register in pursuance of Section.301 of the Act.
6. As per the information and explanations furnished to us, the
Company has not accepted any deposits from the Public during the year
to which the directives issued by the Reserve Bank of India and the
provisions of Sec.58A and 58AA of the Act and the Rules framed there
under apply.
7. The company does not have any formal internal audit system during
the year. However the internal control systems existing in the company
cover some of the internal audit aspects also.
8. The company has maintained the records, which broadly meet the
requirements of the Cost Records U/s.209 (1)(d) of the Companies Act,
1956. However, we have not examined the contents of these accounts and
records in detail.
9. The undisputed dues including Provident fund, Investor education
and protection fund, Employees State Insurance, Income-Tax, Sales tax,
Wealth tax, Custom duty, Excise duty, Cess and other statutory dues
have been deposited by the company during the year with the appropriate
authorities.
10. The company has been registered for more than 5 years and there
are no accumulated losses in the company as at 31.03.2010. The company
has-not suffered cash losses during the year and in the preceding
financial year.
11. The company has not defaulted in repayment of loans taken from
banks. The company has not raised any funds from financial
institutions/debenture holders.
12. During the year the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
13. The provisions of the special statute applicable to Chit Funds,
Nidhi /mutual benefit fund / societies are not applicable to the
company.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. As per the information and explanations furnished to us the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. During the year the company has not obtained any term loans.
17. The funds raised on short-term basis do not prima-facie appear to
have been used for long- term investment and vice versa.
18. During the year the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
19. The company has not issued any debentures.
20. The company has not raised money through public issue during the
year.
21. According to the information and explanations furnished to us,
during the year, there was no fraud on or by the company that has been
noticed or reported by the management.
For P.S.N.RAVISHANKER & ASSOCIATES
Chartered Accountants
Sd/-
Place : Hyderabad, (P. RAVI SHANKER)
Date :31 /05/2010 Partner
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