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K C P Ltd.

BSE: 590066 Sector: Industrials
NSE: KCP ISIN Code: INE805C01028
BSE LIVE 15:40 | 24 Nov 120.85 0.25
(0.21%)
OPEN

121.25

HIGH

122.00

LOW

119.35

NSE 15:31 | 24 Nov 120.95 0.50
(0.42%)
OPEN

121.00

HIGH

122.05

LOW

119.50

OPEN 121.25
PREVIOUS CLOSE 120.60
VOLUME 13466
52-Week high 137.95
52-Week low 79.35
P/E 30.21
Mkt Cap.(Rs cr) 1,558
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 121.25
CLOSE 120.60
VOLUME 13466
52-Week high 137.95
52-Week low 79.35
P/E 30.21
Mkt Cap.(Rs cr) 1,558
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

K C P Ltd. (KCP) - Auditors Report

Company auditors report

To the members of The KCP Limited Chennai

Report on Standalone Financial Statements:

We have audited the accompanying standalone financial statements of The KCP LimitedChennai which comprise the Balance sheet as at 31st March 2017 the Statement of Profitand Loss the Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements:

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting standards specified under section133 of Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the company and for preventingand detecting the 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

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

We have taken into account the provisions of the Companies Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Companies Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Companies Act 2013.Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 of error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation offinancial 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.

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

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 Companies Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2017 its profit and its cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order2016("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

2) As required by Section 143(3) of the Companies Act we report that:

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are 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 Companies Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

e) on the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Companies Act;

f) with respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in "Annexure B" and

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

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 27 to the financial statements;

ii. the company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts and did nothave derivative contracts – Refer Note 45 to the financial statements;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company; and

iv. the company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company

– Refer Note No.47 to the stand alone financial statements.

For K. S. RAO & Co For BRAHMAYYA & CO
Chartered Accountants Chartered Accountants
Firm Registration No: 003109S Firm Regn No 000513S
Place: Chennai P. Govardhana Reddy T. V. Ramana
Partner Partner
Date: 22nd May 2017 (ICAI Memb. No. 029193) (ICAI Memb. No. 200523)

ANNEXURE ‘A' TO THE INDEPENDENT AUDITORS' REPORT

Statement on the Companies (Auditor's Report) Order 2016

The Annexure referred to in Paragraph 1 under the heading "Report on otherLegal and Regulatory Requirements" of our report of even date to the members of THEKCP LIMITED CHENNAI for the year ended 31st March 2017. We report that:

(i) a The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;

b. The Fixed Assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. Pursuant to the program a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification;

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of the immovable property areheld in the name of the company.

(ii) The inventory has been physically verified by the management at reasonableintervals during the year under report and the discrepancies noticed during such physicalverification of inventories as compared to book records have been properly dealt with inthe books of account.

(iii) The company has not granted any loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Therefore the provisions of clause 3(iii)(a) 3(iii)(b) &3(iii)(c) of the said Order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us thecompany has not granted any loans guarantees and security in accordance with theprovisions of section 185 of the Companies Act 2013. The company has complied with theprovisions of Section 186 of the Companies Act 2013 in respect of investments made by thecompany.

(v) In our opinion the company has complied with the provisions of section 73 to 76 andother applicable provisions of the Companies Act 2013 and Companies (Acceptance ofDeposits) Rules 2014 with regard to the deposits accepted from the public. According tothe information furnished to us no Order has been passed on the company by the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any Court or anyother Tribunal for non-compliance with the provisions of Sections 73 to 76 of theCompanies Act 2013.

(vi) We have broadly reviewed the books of account and records maintained by thecompany at its cement engineering and electric power generation units pursuant to theRules made by the Central Government for the maintenance of Cost Records under section148(1) of the Companies Act 2013 and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained.

(vii) (a) According to the information and explanations given to us and the basis ofour examination of the records of the company in our opinion the company is regular indepositing with the appropriate authorities the undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustoms duty of Excise Value added tax Cess and other material statutory duesapplicable to it; and

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Service Tax duty of customsduty of Excise value added tax cess and other material statutory dues were in arrears asat 31st March 2017 for a period of more than six months from the date they became payable;

(b) According to the information and explanations given to us there were no amounts ofSales Tax duty of Customs duty of Excise Cess Income Tax Service Tax that have beendisputed by the company and hence were not remitted to the concerned authorities at thedate of the Balance Sheet under report except

S.No Nature of dues Name of the statute Period Amount in Rs. Lakhs Amount paid under protest (Rs. in Lakhs) Forum where the dispute is pending
1 Excise duty and related demands Central Excise Act 1944 1996-2015 2029.40 89.20 At various Appellate forums
2 Sales tax and related demands AP Sales Tax Act 1957 1996-2001 and 2011-12 169.12 103.23 AP High Court
3 Sales tax and related demands Tamilnadu Sales Tax Act 2007-08 8.70 6.87 Addl. Commissioner of Commercial taxes
4 Forest Permit Charges A.P. Forest Produce Rules 1970 2010-15 and 2016-17 259.77 96.06 Hon'ble High Court
5. Royalty MMDR Act1957 1986-87 0.93 0 ADMG – Guntur
6 Net Present Value of Safety Zone Area Forest Conservation Act1980 2014-15 17.87 0 DFO - Guntur
7 Income Tax Income Tax Act 1961 2010-11 & 2012-13 27.78 0 CIT (Appeals)
8 Electricity Duty AP Electricity Duty Act 1938 July 2003 to May 2013 919.90 522.73 Hon'ble Supreme Court of India

(viii) According to the records of the company examined by us and the information andexplanations given to us there were no defaults in repayment of loans or borrowings tobanks during the year under report;

(ix) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year;

(x) During the course of our examination of the books and records of the companycarried out in accordance with the Generally Accepted Auditing Practices in India andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud by the company or any fraud on the company by its officers oremployees noticed or reported during the year nor we have been informed of any such caseby the management;

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for themanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Companies Act 2013;

(xii) The company is not a chit fund or a nidhi/mutual benefit fund/society and hencethe requirement of clause 3(xii) of the Order is not applicable to the company during theyear under report;

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards;

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year;

(xv) According to the information and explanations given to us and based on ourexaminations of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Therefore the provision ofclause 3(xv) of the Order is not applicable;

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For K. S. RAO & Co For BRAHMAYYA & CO
Chartered Accountants Chartered Accountants
Firm Registration No: 003109S Firm Regn No 000513S
Place: Chennai P. Govardhana Reddy T. V. Ramana
Partner Partner
Date: 22nd May 2017 (ICAI Memb. No. 029193) (ICAI Memb. No. 200523)