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Acknit Industries Ltd.

BSE: 530043 Sector: Industrials
NSE: N.A. ISIN Code: INE326C01017
BSE 00:00 | 24 Apr 98.05 -2.95
(-2.92%)
OPEN

98.40

HIGH

101.00

LOW

96.50

NSE 05:30 | 01 Jan Acknit Industries Ltd
OPEN 98.40
PREVIOUS CLOSE 101.00
VOLUME 1163
52-Week high 163.95
52-Week low 91.60
P/E 11.59
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 98.40
CLOSE 101.00
VOLUME 1163
52-Week high 163.95
52-Week low 91.60
P/E 11.59
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Acknit Industries Ltd. (ACKNITINDUS) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of Acknit Industries Limited

Report On The Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of AcknitIndustries Limited ("the Company")which comprise the Balance Sheet as at 31March 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility For The Standalone

Financial Statements

2. The Company's Board of Directors is responsible for the matters stated insub-section 5 of Section 134 of the Companies Act 2013 ("the Act") with respectto the preparation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (''the Rules").

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified undersub-section 10 of Section 143 of the Act and other applicable authoritative pronouncementsissued by The Institute of Chartered Accountants of India. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2017and its profit and its cash flows for the year ended on that date.

Report On Other Legal And Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in exercise of powers conferred by sub-section 11ofsection 143 of the Act and on the basis of such checks of the books and records of thecompany as we consider appropriate and according to the information and explanations givento us we enclose in 'Annexure A' a statement on the matters specified inparagraphs 3 and 4 of the Order.

10. As required by sub-section 3 of Section 143 of the Act we

report that:

a. We have sought and obtained all the information

andexplanations which to the best of our knowledge and belief were necessary for thepurposes of our

audit.

b. In our opinion proper books of account as requiredby law have been kept by theCompany so far as itappears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of the Rules

e. On the basis of the written representations received from the Directors as on 31March 2017 and takenon record by the Board of Directors none of theDirectors aredisqualified as on 31 March 2017 frombeing appointed as a Director in terms ofsub-section2 of Section 164 of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toourseparate report in "Annexure B" and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 inour opinionand to the best of our information andaccording to the explanations given to us:

(i) The Company has disclosed the impact ofpending litigations on its financialposition inits financial statements Refer Note 29 to thefinancial statements;

(ii) The company has no long-term contracts including derivative contracts as at 31stMarch 2017; and

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 9 November 2016 to 30 December 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 16 to the standalone financial statements.

For R. K. Bajaj & Co.

Chartered Accountants

Firm Reg. No. : 314140E

R. K. Bajaj

Proprietor

Membership No. : 051715

Place: 40/5 Strand Road Kolkata - 700 001

Date: The 30th day of May 2017.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S

REPORT - 31ST MARCH 2017

(Referred to in our report of even date)

(I) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of one year. Inaccordance with this programme the fixed assets has been physically verified by themanagement during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 10 to the standalone financial statements areheld in the name of the Company except for the following:

(1) One plot of lease hold land having gross book value of Rs. 97.50 lacs and net bookvalue of Rs. 97.50 lacs where formal transfer of lease right in favour of the company ispending.

(ii) The inventory except goods-in-transit has been physically verified by themanagement at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. In respect of inventory lying with third parties these havesubstantially been confirmed by them. The discrepancies noticed on verification betweenthe physical stocks and the book records were not material.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) The Company has not granted any loans or provided any guarantees or security tothe parties covered under Section 185 of the Act. The Company has complied with theprovisions of Section 186 of the Act in respect of investments made or loans or guaranteeor security provided to the parties covered under Section 186.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of sections 73 to 76 of the Act and the rules framed there under.

(vi) The Central Government of India has not specified the maintenance of Cost Recordsunder sub section (1) of Section 148 of the Act for any of the products of the Company.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employees state insurance incometax sales tax service tax duty of customs value added tax cess professional tax andother material statutory dues as applicable with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof provident fund employees state insurance income tax sales tax service tax duty ofcustoms value added tax cess professional tax and other material statutory dues were inarrears as at 31March 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Sales tax Value added tax Service tax duty of customs which have not beendeposited with the appropriate authorities on account of any dispute other than thosementioned as follows:

Name of the Statute Nature of the dues Amount (in Rs. ) Period to which the amount relates Forum where pending Remarks
West Bengal Value Added Tax Act 2003 VAT 807300 2007-08 West Bengal Commercial Taxes Appellate & Revisional Board
Income Tax Act 1961 Income tax 1328960 2011-12 Appellate Authority upto Commissioner's Level
Income Tax Act 1961 Income tax 157923 2011-12 Appellate Authority upto Commissioner's Level
West Bengal Value Added Tax Act 2003 VAT 2453004 2013-14 West Bengal Commercial Taxes Appellate Authority -Sr. Jt. Commissioner Kolkata (South Circle)

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or borrowings to bankers of thecompany. As the company does not have any loans or borrowings from any financialinstitution or governments nor has it issued any debentures as at the balance sheet datethe provision of clause 3(viii) of the Order is not applicable to that extent to thecompany.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

(x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practises in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(xi) According to the information and explanations give to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph3(xv) of the Order is notapplicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For R. K. Bajaj & Co.

Chartered Accountants

Firm Reg. No. : 314140E

R. K. Bajaj

Proprietor

Membership No. : 051715

Place: 40/5 Strand Road Kolkata - 700 001

Date: The 30th day of May 2017.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT - 31ST MARCH 2017 (Referred to inour report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE ACT

1 We have audited the internal financial controls over financial reporting of AcknitIndustries Limited ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

2 The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

AUDITORS' RESPONSIBILITY

3 Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial control systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controls overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company;(2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and(3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For R. K. Bajaj & Co.

Chartered Accountants

Firm Reg. No. : 314140E

R. K. Bajaj

Proprietor

Membership No. : 051715

Place: 40/5 Strand Road Kolkata - 700 001

Date: The 30th day of May 2017.