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Kanani Industries Ltd.

BSE: 506184 Sector: Consumer
NSE: KANANIIND ISIN Code: INE879E01037
BSE LIVE 15:08 | 12 Dec 10.34 0.94
(10.00%)
OPEN

9.80

HIGH

10.34

LOW

9.80

NSE 15:06 | 12 Dec 10.15 0.90
(9.73%)
OPEN

9.30

HIGH

10.15

LOW

9.30

OPEN 9.80
PREVIOUS CLOSE 9.40
VOLUME 31716
52-Week high 19.25
52-Week low 8.21
P/E 344.67
Mkt Cap.(Rs cr) 102
Buy Price 10.34
Buy Qty 750.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.80
CLOSE 9.40
VOLUME 31716
52-Week high 19.25
52-Week low 8.21
P/E 344.67
Mkt Cap.(Rs cr) 102
Buy Price 10.34
Buy Qty 750.00
Sell Price 0.00
Sell Qty 0.00

Kanani Industries Ltd. (KANANIIND) - Auditors Report

Company auditors report

To the Members

Kanani Industries Limited

Mumbai

Report on the Financial Statements

We have audited the accompanying standalone financial statements of KananiIndustries Limited which comprise of the Balance Sheet as at March 31 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting 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 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 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 and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitue of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(i) in the case of the balance sheet of the state of affairs of the Company as atMarch 31 2017;

(ii) in the case of the statement of profit and loss of the profit for the year endedon that date;

(iii) in the case of the cash flow statement of the cash flows for the year ended onthat date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies'(Auditors' Report) Order 2016 ("the order")as ammended issued by the Central Government of India in terms of sub -Section (11) 0fSection 143 of the Companies Act 2013 (here-in-after referred to as the order) and on thebasis of such checks of the book and records of the company as we considered appropriateand according to the information and explanations given to us we give in the "AnnexureA" a statement on the matters specified in Paragraph 3 & 4 of the 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 purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by theCompany so far as 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 does not have any pending litigations which would impact its financialposition.

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 during the year ended March 312017.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Place: Mumbai Proprietor
Date: May 27 2017 M. No. 44141
ICAI Firm Regi. No. 102239W

ANNEXURE "A" TO THE AUDITOR'S REPORT

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

b. As explained to us the fixed assets have been physically verified by the mangementduring the year in accordance with a regular programme for verification which in ouropinion is reasonable having regard to the size of the company and nature of its assets.No material discrepancies were noticed on such physical verification.

c. The title deeds of immovable properties are held in the name of the company.

ii. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discripancies were noticed on such physicalverification.

iii. The company has not granted any loans secured or unsecured to any companiesfirms or other parties covered in the register maintained under Section 189 of the Act. Assuch sub-clause (a) to (c) are not applicable.

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 Companies Act 2013in respect of loans investments guarantees and security.

v. In our opinion and according to the information and explanations given to us theCompany did not accept any deposit in contravention of sections 73 to section 76 or anyother relevent provisions of the Companies Act 2013 and the rules framed there under. Asinformed to us no order has been passed by Company Law Board or National Company Tribunalor Reserve Bank of India or any court or any other tribunal.

vi. We have broadly reviewd the books of account maintained by the Company pursuant tothe Rule made by the Central Government for maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we are not required to carryout and have not carried out a detailed examination of the records with a view todetermine whether they are accurate or complete.

vii. a. The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund investor education and protection fundemployees' state insurance fund income tax sales tax wealth tax custom duty exciseduty cess and other material statutory dues wherever applicable to it.

b. In our opinion and in accordance with the information and explaination given to usthe following demands were not deposited on account of dispute:

Name of Status Nature of Dues Period to which the amount relates Forum where disputes is pending Amount (Rs.)
Income Tax Act 1961 Income Tax A Y 2014-15 CIT (Appeals) 2090/-
Income Tax Act 1961 Income Tax A Y 2014-15 CIT (Appeals) 68100/-

viii. In our opinion and according to the information and explaination given to us theCompany is not defaulted in repayment of loans / borrowings to banks government.

ix. In our opinion the company has not raised any funds from public offer (includingdebt instruments) or by term loan.

x. In our opinion on the basis of audit conducted by us and in accordance with theinformation and explanations given to us no fraud on or by the company has been noticedor reported during the course of our audit.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of clause 3 (xv) of the Order arenot applicable to the Company and hence not commented upon.

xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) ofthe Order are not applicable to the company and hence not commented upon.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Place: Mumbai Proprietor
Date: May 27 2017 M. No. 44141
ICAI Firm Regi. No. 102239W

"Annexure B" to the Independent Auditor's Report

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 KANANIINDUSTRIES 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

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 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.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Place: Mumbai Proprietor
Date: May 27 2017 M. No. 44141
ICAI Firm Regi. No. 102239W