You are here » Home » Companies » Company Overview » Kalyani Forge Ltd

Kalyani Forge Ltd.

BSE: 513509 Sector: Engineering
NSE: KALYANIFRG ISIN Code: INE314G01014
BSE LIVE 15:40 | 17 Aug 300.00 300.00
(%)
OPEN

300.00

HIGH

300.00

LOW

295.00

NSE 15:26 | 17 Aug 300.00 0.40
(0.13%)
OPEN

292.60

HIGH

300.00

LOW

292.00

OPEN 300.00
PREVIOUS CLOSE 0.00
VOLUME 2962
52-Week high 409.00
52-Week low 250.00
P/E 27.03
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 300.00
Sell Qty 45.00
OPEN 300.00
CLOSE 0.00
VOLUME 2962
52-Week high 409.00
52-Week low 250.00
P/E 27.03
Mkt Cap.(Rs cr) 109
Buy Price 0.00
Buy Qty 0.00
Sell Price 300.00
Sell Qty 45.00

Kalyani Forge Ltd. (KALYANIFRG) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

KALYANI FORGE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Kalyani Forge Limited (‘theCompany') which comprise the Balance Sheet as at March 312017 the Statement of Profitand Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation of thesefinancial 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 the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 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 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 March31 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 Government of India - Ministry of Corporate Affairs in terms of sub-section(11) of section 143 of the Act we enclose in the annexure ‘A' a statement on thematters specified in paragraphs 3 and 4 of the said Order.

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 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.

(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 ourseparate 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 28.2 to 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 includingderivative contracts - Refer Note 28.11c 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.

iv. the Company has provided requisite disclosures in its financial statementsregarding Specified Bank Notes. There was no holding as well as no dealings in SpecifiedBank Notes during the period from November 08 2016 to December 30 2016 and these are inaccordance with the books of accounts maintained by the Company. Refer note 28.14 to thefinancial statement.

For K. S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No. 100186W
Satish Kelkar
Place: Pune Partner
Date : May 23 2017 Membership No.: 38934

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' of our Report of even date on the financial statements for theyear ended on March 31 2017 of Kalyani Forge Limited)

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

(b) The Company has a program for physical verification of Fixed assets which in ouropinion is reasonable having regard to the nature of the business. Accordingly the Fixedassets have been verified by the management and no material discrepancies were noticed. Inour view the frequency of verification needs improvement.

(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 the management.The discrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of account.

(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013. Accordingly provisions ofclauses 3 (iii) (a) 3 (iii) (b) and 3 (iii) (c) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us theprovisions of section 185 and 186 of the Companies Act 2013 with respect to the loansinvestments guarantees and security are not applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public and consequently the directivesissued by the Reserve Bank of India and the provisions of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under withregard to the deposits accepted from the public are not applicable to the Company.According to the information and explanations given to us no order has been passed by theCompany Law Board National Law Tribunal or Reserve Bank of India or any other court orany other tribunal.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records under 148(1) of the Act and are of the opinion that prima-facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examinationof the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanation given to us and the records ofthe company examined by us the Company is generally regular in depositing with theappropriate authorities undisputed statutory dues including provident fund employeesstate insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other material statutory dues applicable to it.According tothe information and explanation given to us no undisputed material amounts payable inrespect of statutory dues were in arrears as at 31st March 2017 for a period more thansix months from the date they became payable.

(b) According to the information and explanations given to us the particulars of duesof income tax and excise duty as at 31st March 2017 which has not been deposited onaccount of disputes are as follows:

Name of the statute Nature of dispute due Amount under dispute not deposited (Rs.) Period to which the amount related Forum where the dispute pending
Central Excise Act 1944 Cenvat Credit on Rejection Received from customer 567018 From 2000-01 to 2011-12 High Court Mumbai
Cenvat Credit on outward transportation 1128985 From 2004-05 to 2007-08 Additional Commissioner Pune.
Interest on supplementary Invoices 425113 From 2001-02 to 2004-05 High Court Mumbai.
Cenvat Credit on Rejection Received from customer 183304 From 2008-09 to 2011-12 CESTAT Mumbai
Income Tax Act 1961 Disallowance of Expenditure on expansion/upgradation of projects 695976 AY 1992-93 High Court Mumbai
Loss on options settled. 1764485 AY 2008-09 CIT Appeals
Expenditure incurred Bad debts 3472518 AY 2011-12 Commissioner of Income Tax (Appeals) Pune.
Disallowance of 14(A) and Additional Depreciation (on Electrical Equip treated as plant) 433788 AY 2012-13 Commissioner of Income Tax (Appeals) Pune
Assessment complete Order received with demand 2285651 AY 2013-14 Commissioner of Income Tax (Appeals) Pune

(viii) In our opinion and according to information and explanations given to us theCompany has not defaulted in repayment of dues to a financial institution bank orgovernment as at the balance sheet date.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). The term loans have been applied for thepurpose for which they were obtained.

(x) According to the information and explanations furnished by the management whichhave been relied upon by us there were no frauds by or on the Company by its officers oremployees noticed or reported during the year.

(xi) In our opinion and according to information and explanations given to usManagerial Remuneration has been paid or provided during the year in accordance with therequisite approvals mandated by provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3 (xii) ofthe Order is not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the requisite detailshave been disclosed in the financial statements etc. as required by the applicableaccounting standards.

(xiv) The Company has not made preferential allotment or private placement of sharefully or partly convertible debentures during the year under review. The requirements ofsection 42 of the Companies Act 2013 therefore are not applicable.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-I(A) of the Reserve Bank of India Act 1934.

For K.S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No. 100186W
Satish Kelkar
Place: Pune Partner
Date : May 23 2017 Membership No.: 38934

ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT of even date on the FinancialStatements of Kalyani Forge Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KalyaniForge Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the 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 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For K.S. Aiyar & Co.
Chartered Accountants
ICAI Firm Registration No. 100186W
Satish Kelkar
Place: Pune Partner
Date : May 23 2017 Membership No.: 38934