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K E C International Ltd.

BSE: 532714 Sector: Infrastructure
NSE: KEC ISIN Code: INE389H01022
BSE LIVE 15:59 | 21 Nov 301.20 5.20
(1.76%)
OPEN

296.50

HIGH

311.30

LOW

295.80

NSE 15:50 | 21 Nov 301.65 4.85
(1.63%)
OPEN

296.80

HIGH

310.85

LOW

295.50

OPEN 296.50
PREVIOUS CLOSE 296.00
VOLUME 72418
52-Week high 337.95
52-Week low 130.50
P/E 22.02
Mkt Cap.(Rs cr) 7,744
Buy Price 0.00
Buy Qty 0.00
Sell Price 301.20
Sell Qty 122.00
OPEN 296.50
CLOSE 296.00
VOLUME 72418
52-Week high 337.95
52-Week low 130.50
P/E 22.02
Mkt Cap.(Rs cr) 7,744
Buy Price 0.00
Buy Qty 0.00
Sell Price 301.20
Sell Qty 122.00

K E C International Ltd. (KEC) - Auditors Report

Company auditors report

TO THE MEMBERS OF KEC INTERNATIONAL LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of KECINTERNATIONAL LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information inwhich are incorporated the Returns for the year ended on that date audited by the branchauditors of the Company's branches located at Abu Dhabi Afghanistan Algeria BangladeshCongo Egypt Ethiopia Georgia Ghana Indonesia Ivory Coast Kazakhstan Kenya LaosLebanon Libya Malaysia Nepal Nigeria Oman Philippines South Africa Sri LankaTanzania Thailand Tunisia Uganda and Zambia and which includes 20 Joint Operationsreferred to in Note 45 in Standalone Ind AS financial Statements.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

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 Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe branch auditors and other auditors in terms of their reports referred to in the OtherMatters paragraph below is sufficient and appropriate to provide a basis for our auditopinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of the branch auditors and otherauditors on separate financial statements / financial information of the branches andjoint operations referred to in the Other Matters paragraph below the aforesaidstandalone Ind AS financial statements give the information required by the Act in themanner so required and give a true and fairview in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2017 and its profit total comprehensive income its cash flows and the changes inequity for the year ended on that date.

Other Matters

(a) We did not audit the financial statements / financial information of 28 branchesand 19 joint operations included in the standalone Ind AS financial statements of theCompany whose financial statements/financial information reflect total assets of Rs.106556.33 lakh as at March 31 2017 and total revenues of Rs. 121644.62 lakh for theyear ended on that date as considered in the standalone Ind AS financial statements. Thefinancial statements/financial information of these branches and joint operations havebeen audited by the branch auditors and other auditors whose reports have been furnishedto us and our opinion in so far as it relates to the amounts and disclosures included inrespect of these branches and joint operations and our report in terms of subsection (3)of Section 143 of the Act in so far as it relates to the aforesaid branches andjointoperations is based solely on the report of such branch auditors and other auditors.

(b) The comparative financial information for the year ended March 31 2016 and thetransition date opening balance sheet as at April 01 2015 in respect of 28 branches and19 joint operations included in this Standalone Ind AS financial statements prepared inaccordance with the Ind AS have been audited by the branch auditors and other auditors.

Our opinion on the standalone Ind AS financial statements and our report on Other Legaland Regulatory Requirements below is not modified in respect ofthese matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit and on theconsideration of the reports of the branch auditors and other auditors on the separatefinancial statements/financial Information of the branches referred to in the OtherMatters paragraph above we report to the extent applicable that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books ofaccount as required by law have been kept by theCompany so far as it appears from our examination of those books and the reports of theother auditors and proper returns adequate for the purposes of our audit have beenreceived from the branches not visited by us.

c) The reports on the accounts of the branch offices of the Company audited underSection 143 (8) of the Act by the branch auditors have been sent to us and have beenproperly dealt with by us in preparing this report.

d) The Balance Sheet the Statement of Profit and Loss including other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account and with the returns receivedfrom the branches not visited by us.

e) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

f) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct.

g) With respect to the adequacy of the internal financial controls overfinancialreporting of the Companyand its branches and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 52 to the standaloneInd AS financial statements;

ii. The Company has made provision as required under the applicable accountingstandards for material foreseeable losses on long-term contracts - Refer Note 32 to thestandalone Ind AS financial statements. Further the Company did not have any materialforeseeable losses on derivative contracts.

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

iv. TheCompany has provided requisitedisclosures in the standalone Ind AS financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated the 8th November 2016 of the Ministry of Finance duringthe period from 8th November 2016 to 30th December 2016. Based on audit proceduresperformed and the representations provided to us by the management we report that thedisclosures are in accordance with the books of account maintained by the Company and asproduced to us by branch auditor and other auditors by the Management.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 117365W)
SAIRA NAINAR
Partner
Mumbai May 19 2017 (Membership No. 040081)

Annexure "A" To The Independent Auditor's Report

(Referred to in paragraph 1(g) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date on the standalone Ind AS financialstatements for the year ended March 312017 of KEC INTERNATIONAL LIMITED)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KECINTERNATIONAL LIMITED ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date which includes internal financial controls over financial reporting ofthe Company's branches andjoint operations.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained bythe branch auditors of branches in terms of their reports referred to in the OtherMatters paragraph below is sufficient and appropriate to provide a basis for our auditopinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company;(2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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 controlover 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 to the best of our information and according to the explanations givento us and based on the consideration of the reports of the branch auditors on internalfinancial controls system over financial reporting of the branches referred to in theOther Matters paragraph below the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2017 basedon the internal control over financial reporting criteria established by the respectiveCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants oflndia.

Other Matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting insofar as itrelates to 28 branches is based on the corresponding reports of the branch auditors.

Our opinion is not modified in respect ofthis matter.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 117365W)
SAIRA NAINAR
Partner
Mumbai May19 2017 (Membership No. 040081)

Annexure "B" To The Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date on the standalone Ind AS financial statements for theyear ended March 312017 of KEC INTERNATIONAL LIMITED)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation offixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds / transfer deeds /conveyance deeds and other relevant records [including confirmations from trustee of thelenders in respect of immovable properties (land and buildings thereof) whose title deedshave been mortgage as security for loans taken by the Company] provided to us we reportthat:

(i) The title deeds of all the freehold immovable properties (land and buildingsthereof) are held in the name of the Company as at the balance sheet date except inrespect oflndustrial plots situated at Gandhinagar Gujarat admeasuring to 4891.45 sq.meters Industrial plot situated at Mysore Karnataka admeasuring to 80773 sq. metersland and building situated at Jabalpur Madhya Pradesh admeasuring to 9000 Sq. feet anda flat at Worli Mumbai admeasuring to 1088.22 sq. feet having Gross carrying amountaggregating ' 2634.79 lakh and Net carrying amount aggregating ' 2582.45 lakh as atBalance Sheet date the title of which have been transferred to and vested in the Companypursuant to the Schemes of Amalgamation / Arrangement in the earlier years and theprocedural formalities for transfer in the name of the Company in the relevant documentsare in process.

(ii) The leasehold deeds of immovable properties (land and buildings thereof) are inthe name of the Company as at Balance Sheet date.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the Register maintained underSection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year. The Company does not have unclaimed deposits as atMarch 31 2017 and accordingly provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

(vii) According to the information and explanations given to us in respect ofstatutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees'State Insurance Income- tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax cess and other material statutory duesapplicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax Customs Duty Excise Duty ValueAdded Tax cess and other material statutory dues in arrears as at March 312017 for aperiod of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Taxwhich have not been deposited as on March 31 2017on account ofdisputesare given below:

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and dues to debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). Further the term loans have been applied by theCompany during the year for the purposes for which theywere raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Ind AS financial statements etc. asrequired by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions ofSection 192 of theCompanies Act 2013 are not applicable.

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

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm's Registration No. 117365W)
SAIRA NAINAR
Partner
Mumbai May 19 2017 (Membership No. 040081)