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Kakatiya Cement Sugar & Industries Ltd.

BSE: 500234 Sector: Industrials
NSE: KAKATCEM ISIN Code: INE437B01014
BSE LIVE 12:29 | 20 Nov 368.75 0.25
(0.07%)
OPEN

369.75

HIGH

371.20

LOW

368.05

NSE 12:24 | 20 Nov 369.50 -0.30
(-0.08%)
OPEN

370.80

HIGH

372.45

LOW

368.00

OPEN 369.75
PREVIOUS CLOSE 368.50
VOLUME 1012
52-Week high 448.90
52-Week low 203.00
P/E 9.99
Mkt Cap.(Rs cr) 287
Buy Price 368.75
Buy Qty 23.00
Sell Price 370.70
Sell Qty 24.00
OPEN 369.75
CLOSE 368.50
VOLUME 1012
52-Week high 448.90
52-Week low 203.00
P/E 9.99
Mkt Cap.(Rs cr) 287
Buy Price 368.75
Buy Qty 23.00
Sell Price 370.70
Sell Qty 24.00

Kakatiya Cement Sugar & Industries Ltd. (KAKATCEM) - Auditors Report

Company auditors report

To

The Members of Kakatiya Cement Sugar and Industries limited

Report on the Financial Statements

We have audited the accompanying financial statements of Kakatiya Cement Sugar andIndustries limited("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe 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 financial statements based on ouraudit.

We have taken into account the provisions of the

Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 judgmentincluding 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 control 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.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory

Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("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 in paragraphs 3and 4 of the Order to the extent applicable.

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

(a) We have sought and obtained all the information and explanations which to the bestof 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 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 in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts)Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2017 from being appointed as a director in terms of Section164 (2) 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 to our separate report in "Annexure B".

(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 30 of the financial statements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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 financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember2016 to 30thDecember 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 32 to the financial statements.

For M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Partner
Place: Secunderabad Membership
Date : 26th May 2017 No. 018404

Annexure - A to the Auditors' Report

The Annexure referred to in our report to the members of the Company for the year endedon 31st March 2017. We report that:

(i) (a) The Company is in the process of updating proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) As explained to us the fixed assets have been physically verified by themanagement in a periodical manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its business. No material discrepancies werenoticed on such physical 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 immovable properties areheld in the name of the Company.

(ii) The inventories have been physically verified during the year by themanagement.The discrepancies noticed on verification between the physical stocks and bookrecords were not material.

(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 Act. Accordingly paragraph 3 (iii) (a) to (c) of the Order is notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto loans investments guarantees and securities made.

(v) The company has not accepted deposits within the meaning of Sections 73 to 76 ofthe Act and the rules framed there under.

(vi) We have broadly reviewed the cost records maintained by the Company as prescribedunder sub-section (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax value addedtax wealth tax service tax customs duty excise duty cess and any other statutory duesas applicable with the appropriate authorities and there were no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and records of theCompany examined by us the particulars of income tax sales tax valued added tax wealthtax service tax customs duty excise duty or cess as at 31st March 2017which have not been deposited on account of any dispute pending are as under:

Name of the Statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Income-Tax Act Income Tax 12.42 Assessment High Court of Judicature
1961 Years at Hyderabad for the
1999-2000 State of Telangana and
2000-2001 the State of Andhra
2001-2002 Pradesh

 

Name of the Statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
VAT Act 2005 Sales Tax 29.53 Financial Year 2012-13 Appellate Tribunal Hyderabad
VAT Act 2005 Sales Tax 27.52 Financial Year 2013-14 Appellate Tribunal Hyderabad
Customs Act 1962 Customs Duty 65.77 Financial year 2012-2013 Additional Commissioner Customs

(viii) The Company has not defaulted in repayment of loans or borrowing to financialinstitutions banks and Governments.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer during the year. In our opinion and according to the information andexplanations given to us the term loans have been applied for the purpose for which theloans were obtained other than amounts temporarily invested pending utilization of thefunds for the intended use.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with 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 ourexamination of the records of the Company transactions with the related parties are incompliance with section 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 give 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 ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with it. Accordingly paragraph 3 (xv) ofthe 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 M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Place : Secunderabad Partner
Date : 26th May 2017 Membership No.018404