To the Members of
Tapi Fruit Processing Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Tapi Fruit
Processing Limited (‘the Company), which comprise the balance sheet as at March 31,
2023, the statement of profit and loss, and the cash flow statement for the year then
ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given
to us, the aforesaid standalone financial statements give the information required by the
Companies Act, 2013 (‘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, 2023, its profit and cash flows for the year ended
on that date.
Basis of opinion
We conducted our audit of standalone financial statement in accordance with the
Standards on Auditing specified under section 143 (10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report. We have fulfille d the
responsibilities described in the Auditors responsibilities for the audit of the
Standalone Financial Statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of procedures designed to respond
our assessment of the risks of material misstatement of the Standalone Financial
Statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying
Standalone Financial Statements.
| Sr. No. |
Key Audit Matter |
How our audit addressed the key audit matter |
| 1. |
Revenue Recognition - Refer Note B(II) to the accompanying standalone financial
statements |
Principal Audit Procedures |
|
The revenue of the Company consists primarily of sale of food products that are sold
through distributors, modern trade and direct sale channels amongst others. |
Our key audit procedures around revenue recognition included, but were not limited to,
the following. |
|
Revenue is recognized when the control of products is transferred to the customer and
there is no unfulfilled obligation. |
• Assessed the appropriateness of the revenue recognition accounting policies of
the Company including those relating to rebates and trade discounts, by evaluating
compliance with the applicable accounting standards. |
|
Owing to the volume of sales transactions, size of the distribution network and varied
terms of contracts with customers, revenue is determined to be an area involving
significant risk in line with the requirements of the Standards on Auditing and hence,
requiring significant auditor attention. |
• Evaluated the design and tested the operating effectiveness of the relevant key
controls with respect to revenue recognition including general and specific information
technology controls. |
|
|
• Performed substantive testing on selected samples of revenue transactions
recorded during the year by testing the underlying documents including contracts,
invoices, goods dispatch notes, shipping documents and customer receipts, wherever
applicable. |
|
|
• Understood and evaluated the Companys process for recording of the accruals
for discounts and rebates and ongoing incentive schemes and on a test basis, verified the
year-end provisions made in respect of such schemes. |
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report, Business Responsibility Report but does not
include the financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys 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 standalone 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 of 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 standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern. • Evaluate the overall presentation, structure and
content of the standalone financial statements, including the disclosures, and whether the
standalone financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditors report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the companies (Auditors Report) Order, 2020 "(the Order) issued
by the central government of India in terms of subsection (11) of section 143 of the Act,
we give in the "Annexure A" statement on the matters specified in paragraphs 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 and cash flow dealt with by
this Report are in agreement with the books o f account;
(d) In our opinion, the aforesaid standalone 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, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March 2023 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"; and (g) with respect to the other matters to be
included in the Auditors Report in accordance with Rule 11 of the Companies (Audit a nd
Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us.
I. The Company does not have any pending litigations which would impact its financial
position.
II. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
III. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the
Company.
|
For Kansariwala & Chevli |
|
Chartered Accountants |
|
Firm Reg. No. 123689W |
|
CA A. H. Chevli |
|
Partner |
| Date: May 30, 2023 |
Membership No. 038259 |
| Place: Surat |
UDIN: 23038259BGWHEJ5543 |
ANNEXURE - A
TO THE INDEPENDENT AUDITORS REPORT
(Referred to Para 1 under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date to the members of Tapi Fruit Processing
Limited for the year ended March 31, 2023) To the best of our information and according to
the explanations provided to us by the management of the Company and the books of account
and records examined by us in the normal course of audit, we report that; 1.
a) A. The company has maintained proper records showing full particulars including
quantitative details and situation of its Property, Plant and Equipment.
B. The Company does not have any intangible assets.
b) As explained to us, Property, Plant & Equipment have been physically verified by
the management in a phased manner over a period of three years, which in our opinion is
reasonable, having regard to the size of the Company and nature of its assets. Pursuant to
the program, certain items of the Property, Plant and Equipment has been physically
verified by the Management during the year, and no material discrepancies between the book
records and the physical assets were noticed on such verification.
c) The title deeds of immovable properties (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the lessee)
disclosed in the financial statements are held in the name of the Company.
d) The company has not revalued any of its Property, Plant and Equipment during the
year.
e) As explained to us, no proceedings have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder.
2. a) Physical verification of inventories has been conducted at reasonable intervals
by the management during the year. In our opinion, the coverage and procedure of such
verification by the management is appropriate and no discrepancies of 10% or more in
aggregate for each class of inventories were noticed on verification between physical
stock and book records.
b) The Company has not been sanctioned working capital limits in excess of 5 crore
rupees, in aggregate, from banks on the basis of security of current assets. Accordingly,
this clause of the order is not applicable.
3. The company has made investment in subsidiary company Tapi Wellness Private Limited
during the year. a) The aggregate amount invested during the year and balance outstanding
at the balance sheet date with respect to such investment in subsidiary company is as
under;
(INR in Hundred)
| Particulars |
Amount invested during the year |
Balance as on March 31, 2023 |
| Investment made in Tapi Wellness Private Limited |
990.00 |
990.00 |
b) The Company has not provided any guarantee or security or granted any loans or
advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties during the year, hence clause 3(iii)(b) to
clause 3(iii)(f) of the order is not applicable to the company.
4. The Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of loans granted, investments made and guarantees and
securities provided, as applicable.
5. The company has not accepted any deposits within the meaning of sections 73 to 76 of
the act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly,
the provision of clause 3(v) of the order are not applicable.
6. The Central Government has not specified maintenance of cost records under
sub-section (1) of section 148 of the Act, in respect of Companys products/business
activity. Accordingly, reporting under clause 3(vi) of the Order is not applicable.
7. a) In our opinion, the company is regular in depositing undisputed statutory dues
including Goods and Services Tax, provident fund, employees state insurance, income-tax,
sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any
other statutory dues to the appropriate authorities. There were no outstanding statutory
dues as on 31st of March, 2023 for a period of more than six months from the date they
became payable.
b) There are no amounts payable in respect of income tax, wealth tax, service tax,
goods and service tax, sales tax, customs duty and excise duty etc. on accounts of any
disputes.
8. According to the information and explanations given to us, no transactions were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of account .
9. a) The Company has not defaulted in the repayment of loans or other borrowings or in
the payment of interest thereon to any lender.
b) The Company is not declared willful defaulter by any bank or financial institution
or other lender.
c) The term loans taken during the year and outstanding term loan at the beginning of
the year have been applied for the purposes for which those were obtained.
d) On an overall examination of financial statements of the company, funds raised on
short-term basis have not been utilised for long term purposes.
e) The company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
f) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies.
10. a) In our opinion and according to the information and explanations given to us,
money raised by way of initial public offer were applied for the purposes for which these
were obtained. However, pending utilization towards the purpose, the company has parked
the unutilized amount of initial public offer in fixed deposit in scheduled commercial
bank.
b) During the year, the Company has made preferential allotment of shares. In our
opinion and according to the information and explanations given to us, the requirements of
section 62 of the companies act, 2013 have been duly complied with and the fund raised
have been used for the purposes for which the fund were raised. The company has not made
private placement of shares or convertible debentures (fully or partly or optionally)
during the year.
11. a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanation given to us, we have neither come across any
instance of material fraud by the Company or on the Company, noticed or reported during
the year, nor have we been informed of any such case by the management.
b) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanation given to us, a report under Section 143(12)
of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 was not required to be filed with the Central Government. Accordingly, the
reporting under clause 3(xi)(b) of the Order is not applicable to the Company.
c) As represented to us by the management, the Company has not received any
whistle-blower complaint during the year and upto the date of this report.
12. The Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of
the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the
Financial Statements as required by the applicable accounting standards.
14. a) In our opinion and according to the information and explanations given to us,
the Company has an internal audit system as required under section 138 of the Act which is
commensurate with the size and nature of its business.
b) We have considered the reports issued by the Internal Auditors of the Company for
the period under audit.
15. The Company has not entered into any non-cash transactions with its Directors or
persons connected with its directors and hence provisions of section 192 of the Companies
Act, 2013 are not applicable to the Company.
16. a) The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
b) The Company has not conducted any Non-banking Financial or Housing Finance
activities during the year.
c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, reporting under clauses 3(xvi)(a),
3(xvi)(b) and 3(xvi)(c) of the Order are not applicable to the Company. 17. The Company
has not incurred cash losses during the financial year covered by our audit and the
immediately preceding financial year.
18. There has been resignation of the statutory auditor of the Company during the year.
The outgoing auditor has not raised any issues, objections or concerns; therefore, we have
not taken into consideration outgoing auditors issues, objections or concerns.
19. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial l iabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due withi n a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
20. According to the information and explanations given to us, the Company does not
fulfill the criteria as specified under section 135(1) of the Act read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014 and according, reporting under clause
3(xx) of the Order is not applicable to the Company.
|
For Kansariwala & Chevli |
|
Chartered Accountants |
|
Firm Reg. No. 123689W |
|
CA A. H. Chevli |
|
Partner |
| Date: May 30, 2023 |
Membership No. 038259 |
| Place: Surat |
UDIN: 23038259BGWHEJ5543 |
ANNEXURE - B
TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under 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 Tapi Fruit
Processing Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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 the Institute of Chartered Accountants 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 whether
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 and their operating effectiveness. Our
audit of internal financial controls over financial reporting included obtai ning 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 Companys internal financial controls system over financial
reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys 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 companys internal financial control over financial
reporting includes those policies and procedures that; (a) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (b) 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 (c) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over 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 procedures may deteriorate.
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 March 31, 2023, 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.
|
For Kansariwala & Chevli |
|
Chartered Accountants |
|
Firm Reg. No. 123689W |
|
CA A. H. Chevli |
|
Partner |
| Date: May 30, 2023 |
Membership No. 038259 |
| Place: Surat |
UDIN: 23038259BGWHEJ5543 |
+91-9892691696
