TO THE MEMBERS OF TYROON TEA COMPANY LIMITED Report on the Audit of the Financial
Statements Opinion
We have audited the Ind AS Financial Statements of Tyroon Tea Company Limited
("the Company"), which comprise the Balance sheet as at March 31, 2023, and the
statement of Profit and Loss (including other comprehensive income), statement of changes
in equity and statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as "financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Ind AS 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 (financial performance
including other comprehensive income), changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. Our responsibilities under those SAs are further
described in the Auditor’s Responsibilities for the Audit of the 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be the key audit matter to be
communicated in our report.
| The Key Audit Matter |
We understood and tested the design and operating effectiveness of controls as
established by the management in determination of the fair value of biological assets and
agricultural produce used in the production of finished goods (Made Tea). |
| Determination of fair value of biological assets and agricultural produce as at the
year endedMarch 31, 2023 |
We considered various factors including the actual selling price prevailing around and
subsequent to the year end, including technical factors stated by management which
determine the quality and hence the fair value of biological assets. |
| As on March 31,2023, the Company has biological assets with the carrying value of Rs.
27.61 lakhs and finished goods of made tea produced from green leaves harvested from own
gardens ("agricultural produce") & finished goods of made tea produced from
bought green leaves with carrying value of Rs. 92.34 lakhs. |
Based on the above procedures performed, the management’s determination of the
fair value of biological assets and agricultural produce used in the production of
finished goods (Made Tea) .as at the year-end and comparison with net realisable value of
inventory is considered to be reasonable. |
| The biological assets and agricultural produce used in the production of finished
goods (Made Tea) are stated at fair value less costs to sell. Such Inventory of Made Tea
is carried at the lower of cost and net realizable value. |
|
| We considered the valuation of biological assets and agricultural produce used in the
production of finished goods (Made Tea) as a key audit matter given the significant
judgement involved in the consideration of factors used in the determination of fair value
of such agricultural produce. |
|
| Investments (Note No. 6 & 13) |
Our Audit Procedures includes the following : |
| Investments include investments made by the Company in various quoted and unquoted
equity shares, mutual funds and preference share of others. |
We have verified these investments with reference to the provisions of Ind AS and also
internal policies and procedure of the Company as follows: |
| These investments constitute 41% of the Company’s total assets. |
Carried out evaluation of the design and operating effectiveness of the internal
controls and performed substantive audit procedures. |
| The valuation of each category of the aforesaid securities is to be done as per the
provisions of Ind AS which involves collection of data/information from various sources
such as rates quoted on BSE / NSE, Demat statement, financial statements of unlisted
companies etc. Considering the complexities and extent of judgement involved in the
valuation, this has been determined as Key Audit Matter. |
Assessed and evaluated the process adopted for collection of information from various
sources for determining fair value of these investments. |
|
Verified compliance with the presentation and disclosure requirements as per Ind AS
and the Companies Act, 2013. This test was conducted for the entire population. |
|
Based on the above procedures performed, we observed the management’s valuation
assessment to be reasonable. |
Information Other than the Financial Statements and Auditors’ Report Thereon
The Company’s management and Board of Directors are responsible for the other
information. The other information comprises the information included in the
Company’s annual report, but does not include the financial statements and our
auditors’ report thereon. Our opinion on the 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
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.
Management’s Responsibility for the Financial Statements
The Company’s management and Board of Directors are responsible for the matters
stated in Section 134(5) of the Act with respect to the preparation of these financial
statements that give a true and fair view of the state of affairs, ( financial position),
profit or loss ( financial performance including other comprehensive income), changes in
equity 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. 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 judgements 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.
In preparing the financial statements, management and Board of Directors are
responsible for assessing the Company’s 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 is also responsible for overseeing the Company’s financial
reporting process. Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the 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.
ii. Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
iv. Conclude on the appropriateness of management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
v Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality, in the context of any entity’s financial statement taken as a whole,
depends on the nature or magnitude of financial information, or a combination of both, to
be judged in the particular circumstances, that individually or in the combination with
other information is reasonably be expected to influence the economic decisions that a
reasonably knowledgeable primary user makes on the basis of the general purpose financial
statements. In planning the scope of our audit work, evaluating the results of our work
and evaluating the financial effect of any identified omissions, misstatements or
obscuration in the financial statements we consider the quantitative materiality and also
the qualitative factors.
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 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 in terms of Section 143 (11) of the Act, we
give in the "Annexure A" a statement on the matters specified in paragraphs 3
and 4 of the Order, as may be applicable.
(A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the 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 other comprehensive
income), the statement of changes in equity and the statement of cash flows dealt with by
this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act.
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 March 31,2023 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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
g) The remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be given by us.
h) With respect to the other matters to be included in the Auditors’ 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 does not have any pending litigation which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivatives 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.
iv. a. The management has represented that, to the best of its knowledge and belief,
other than disclosed in the notes to accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the company to or in any other person(s) or entity (ies), including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
b. The management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to accounts, no funds have been received by the company
from any person(s) or entity(s), including foreign entities ("Funding Parties")
with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party ("ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
c. Based on audit procedures that we have considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under iv. (a) and (b) above contain any material mis-statement.
v The Company has not declared and paid dividend during the year.
vi. In terms of the Companies (Accounts) Second Amendment Rules, 2022 amending further
the proviso to sub- rule (I) of Rule 3 of the Companies (Accounts) Rules, 2014 vide
notification no. G.S.R 235(E) dated 31st March, 2022 issued by Ministry of Corporate
Affairs, the uses of accounting software having a feature of recording audit trail for
maintaining books of account and creating an edit log of each change made in books of
account has been made applicable for the Company with effect from April 1,2023. Therefore,
we have not reported the matter specified in Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.
Annexure - A to the Independent Auditor’s Report
Annexure to the Independent Auditor’s Report to the Members of TYROON TEA COMPANY
LIMITED referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements in
our Report of even date
(i) (a) (A) The company is maintaining proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment.
(B) The company has no intangible assets.
(b) These Property, Plant and Equipment have been physically verified by the management
at reasonable intervals and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties disclosed in the financial statements are
held in the name of the company.
(d) According to the information and explanations given to us, the company has not
revalued its Property Plant and Equipment (including Right of Use assets)during the year.
(e) According to the information and explanations given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transaction (Prohibition) Act 1988 (45 of 1988) and the rules made there under.
(ii) (a) The management has conducted physical verification of inventory at reasonable
intervals. No discrepancies of 10% or more in the aggregate for each class of inventory
were noticed.
(b) Based on the audit procedures and according to the information and explanations
given to us, working capital limit in excess of five crore rupees at any point of time
during the year has not been sanctioned to the company.
(iii) a) A) The company has not provided loans or advances in the nature of loans, or
stood guarantee,
or provided security to any subsidiary, joint venture or associates. However, the
company has made investments during the year.
B) The company has granted unsecured loan to parties other than subsidiary, joint
venture, or associates, details of which are as follows:
| Company |
Amount of Loan Given |
Closing Balance |
| Hasimara Industries Ltd. |
28500000 |
28500000 |
b) The terms and condition of the grant of such loan & investment are not
prejudicial to the interest of the company.
c) The company is regular in receipt of payment of principal and interest on such loan
as per stipulation.
d) There is no overdue amount for a period of more than 90 days.
e) There are no loans or advances in the nature of loan granted, which has fallen due
during the year, that has been renewed or extended or fresh loans granted to settle the
over dues of existing loans.
f) The company has granted loans or advances in the nature of loans either repayable on
demand or without specifying any terms or period of repayment details of which are as
follows:
| Aggregate amount of Total Loan |
Loan to Promoters |
Loan to Related Parties |
| Amount (Rs.) |
% of Total Loans |
Amount (Rs.) |
% of Total Loans |
Amount (Rs.) |
% of Total Loans |
| 28500000/- |
100% |
NIL |
NIL |
28500000/- |
100% |
(iv) Based on the audit procedures carried out by us in respect of loans, investments,
guarantees, and security the provisions of section 185 and 186 of the companies act have
been complied with.
(v) The company has not accepted any deposits or amounts which are deemed to be
deposits covered under section 73 to 76 or any other relevant provisions of the Act and
the rules framed there under.
(vi) According to the information and explanations given to us , maintenance of cost
records has not been specified by the central government under sub section 1 of the
section 148 of the Act.
(vii) (a) According to the information and explanations given to us and the records
examined by us, the company is regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Employees State Insurance , Income
Tax, Goods and Service Tax, Sales tax, Duty of customs, Duty of Excise, Value Added Tax,
Cess and other material statutory dues applicable to it and there are no outstanding
Statutory Dues as at the last day of the financial Year for the period of more than six
months from the date the became payable.
(b) According to the information and explanations given to us there are no dues
mentioned in Clause 3(vii)(a) above, which have not been deposited on account of any
dispute.
(viii) Based on our checking and according to the information and explanation given to
us no transaction not recorded in the books of accounts have been surrendered or disclosed
as income during the year in the tax assessment under Income tax Act 1961 (43 of 1961).
(ix) (a) The company has not defaulted in repayments of loans or other borrowings or in
the payments of interest thereon to any lender.
(b) As per information and explanation given to us and records maintained by the
company is not a declared willful defaulter by any bank or financial institution or other
lender.
(c) The term loans have been applied by the company for the purpose for which they were
obtained.
(d) Funds raised on short term basis by the company have not been utilized for long
term purposes.
(e) The company has no subsidiaries, joint ventures or associates.
(f) The company has no subsidiaries, joint ventures or associates.
(x) (a) According to the information and explanation given to us the company has not
raised moneys by way of initial public offer or further public offer including debt
instruments during the year.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
(xi) (a) According to the information and explanations given to us no fraud on or by
the company has been noticed or reported during the course of audit.
(b) No report has been filed by us under sub section (12) of Section 143 of the Act in
Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with
the Central Government.
(c) The company has not received any whistle blower complaints during the year.
(xii) According to the information and explanation given to us the company is not a
Nidhi Company.
(xiii) According to the explanation and information given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of the Act where
applicable and the details have been disclosed in the Ind AS Financial Statements etc., as
required by the applicable accounting standards.
(xiv) (a) The company has an internal audit system commensurate with the size and
nature of its business.
(b) The reports of the Internal Auditor for the period under audit has been considered
by us.
(xv) The company has not entered into any non-cash transaction with the directors or
persons connected with him.
(xvi) The company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934 (2 of 1934) and is not a Core Investment Company as defined in the
regulations made by the Reserve Bank of India.
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of statutory auditors during the year.
(xix) According to the information and explanations given to us and on the financial
ratios, ageing and expected dates of realization of financial assets and payment of
financial liabilities, other information accompanying the financial statements, 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 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. 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 within a
period of one year from the balance sheet date, will get discharged by the company as and
when they fall due.
(xx) According the information and explanations given to us, no amount is required to
be transferred for any unspent amount on other than ongoing projects to a Fund Specified
in the Schedule VII to the Companies Act within a period of six months of the expiry of
the financial year in compliance with second proviso to section 135(5) of the Act. and no
amount is remaining unspent under 135(5) of the Act pursuant to any ongoing project to be
transferred to special account in compliance with section 135(6) of the Act.
(xxi) Consolidated financial statements are not required to be prepared by the company.
ANNEXURE"B"
As stated in paragraph 2 (f) of Report on Other Legal and Regulatory Requirements
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 TYROON TEA
COMPANY LIMITED ("the Company") as at March 31,2023 in conjunction with our
audit of the Ind As financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining 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.
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 the ICAI. 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
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 auditor’s judgement, including the assessment of the risks of
material misstatement of the Ind As financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
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 Ind As 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
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Ind As financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company’s assets that could have
a material effect on the Ind As 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 K. N. Gutgutia & Co. Chartered Acco untants Firm Registration
No.:304153E CA. SUBHASISH PORE Partner |
| Place: Kolkata |
Membership No.: 55862 |
| Date : May 30, 2023 |
UDIN: 23055862BGRWKG2583 |
+91-9892691696
