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Kaveri Seed Company Ltd.

BSE: 532899 Sector: Others
NSE: KSCL ISIN Code: INE455I01029
BSE LIVE 15:40 | 18 Dec 537.30 -2.75
(-0.51%)
OPEN

543.00

HIGH

543.45

LOW

521.25

NSE 15:29 | 18 Dec 537.80 -3.35
(-0.62%)
OPEN

539.70

HIGH

545.00

LOW

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OPEN 543.00
PREVIOUS CLOSE 540.05
VOLUME 29586
52-Week high 708.10
52-Week low 381.00
P/E 17.96
Mkt Cap.(Rs cr) 3,552
Buy Price 0.00
Buy Qty 0.00
Sell Price 536.00
Sell Qty 60.00
OPEN 543.00
CLOSE 540.05
VOLUME 29586
52-Week high 708.10
52-Week low 381.00
P/E 17.96
Mkt Cap.(Rs cr) 3,552
Buy Price 0.00
Buy Qty 0.00
Sell Price 536.00
Sell Qty 60.00

Kaveri Seed Company Ltd. (KSCL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

M/S. KAVERI SEED COMPANY LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of M/S. KAVERI SEEDCOMPANY LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 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 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its Profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the companies (Auditor’s Report) Order 2016 ("theOrder") issued by the central government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure – A a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 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 knowledge and belief and according to the information andexplanations given to us: i. The Company does not have any pending litigations which wouldimpact its financial position.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For P R REDDY & CO
Firm Regn No.003268S
Chartered Accountants
Sd/-
P. RAGHUNADHA REDDY
Place: Hyderabad Partner
Date: 10 May 2016. Membership No. 23758

Annexure - A Referred to in the Auditors’ Report to the Members of M/S.KAVERISEED COMPANY LIMITED for the year ended 31 March 2016. We report that: i. a. The companyhas maintained proper records showing full particulars including quantitative detailsand situation of fixed assets.

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

c. According to the information and explanations given to us and on the basis of ourexamination of records of the company the title deeds of immovable properties shown inthe fixed asset schedule are held in the name of company.

ii. The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification between the physical stocks and the book records are not materialand they have been properly dealt with in the books of accounts.

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 during the year.

iv. According to the information and explanations given to us The Company has notgiven any loans made any investments given any guarantees and securities to any personto which provisions of the section 185 and 186 of the companies Act 2013 are applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the CARO 2016 are not applicable to the Company.

vi. According to the information and explanations given to us the maintenance of costrecords under sub-section (1) of section 148 of the Companies Act 2013 has not beenprescribed by the Central Government for the Company.

vii. a. The Company is regular in depositing with appropriate authorities’undisputed statutory dues including provident fund Employees’ state insuranceincome-tax sales-tax service tax customs duty duty of excise Value added tax cessand other material statutory dues as applicable to it. According to the information andexplanations given to us there are no undisputed amounts payable in respect aforesaiddues as at 31st March 2016 for a period of more than six months from the date theybecame payable.

b. According to the information and explanations given to us there are no dues ofincome-tax service tax and customs duty which have not been deposited on account of anydispute. However according to information and explanations given to us the followingdues of Sales tax and Duty of Excise have not been deposited by the company an account ofdisputes.

Name of the Statute Nature of Dues Amount ` Period to which the amount Relates Forum where dispute is pending
Central Excise Act Excise Duty 27658572*# April 2010 To March 2014 Directorate General of Central Excise - Intelligence Zonal Unit Begumpet Hyderabad.
Karnataka VAT Act VAT Penalty & Interest 56155366 $ April 2009 To March 2010 Deputy Commissioner of Commercial Taxes (Audit) Davangere Karnataka.
APGST Act Purchase Tax 2236467 & April 2003 To March 2004 Deputy Commissioner (C.T) Abids Division Hyderabad.

*. Net of Amounts paid under protest

#. The company has filed an appeal before Commissioner of Customs & Central ExciseHyderabad IV Commissionerate Hyderabad. $. The company is in the process of filing anappeal before Joint Commissioner of Commercial Taxes (Appeal) Davangere Karnataka &.The company has filed appeal before Hon’ble High Court of Andhrapradesh Hyderabad.

viii. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment of duesto financial institutions banks Government or dues to debenture holders.

ix. In our opinion and according to the information and explanations given to us theCompany has utilized the money raised by way of the term loans for the purposes for whichthey were raised and has not raised money by way of initial public offer/further publicoffer (Including debt instruments) during the year.

x. In our opinion and according to the information and explanations given to us nofraud by the Company or no material fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to usManagerial remuneration paid or provided is within the limits specified under section 197read with schedule V to the Companies Act 2013.

xii. In our opinion the company is not a nidhi therefore provisions of clause 3(XII)of companies (Auditors Report) Order 2016 as amended are not applicable to the company.

xiii. In our opinion and according to the information and explanations given to us alltransactions entered by related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the financialstatements.

xiv. According to the information and explanations given to us the company has notmade any preferential allotment of shares or private placement of shares or fully orpartly convertible debentures during the year under the review.

xv. According to the information and explanations given to us during the year thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly paragraph – 3(xv) of the order is not applicable.

xvi. In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For P. R. REDDY & CO.
Firm Regn No.003268S
Chartered Accountants
Sd/-
P. RAGHUNADHA REDDY
Place: Hyderabad Partner
Date: 10 May 2016. Membership No. 23758

Annexure - B Referred to Independent Auditor’s Report to the Members ofM/S.KAVERI SEED COMPANY LIMITED for the year ended 31 March 2016.

Referred to in the Independent Auditor’s Report of even date to the members ofKaveri Seed Company Limited on the standalone financial statements for the year endedMarch 31 2016.

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE _1_ OF SUB SECTION 3 OF SECTION143 OF THE ACT

1. We have audited the internal financial controls over financial reporting of KaveriSeed Company Limited ("the company") as of March 31 2016 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

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accounts of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company’s policies the safeguardingof its assets the preventing and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

AUDITOR’S RESPONSIBILITY

3. 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 depending on the auditor’s judgment including the assessment of the risksof the material misstatement of the financial statements whether due to fraud or error.

5. 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 controlssystem over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

6. A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purpose in accordance withGenerally Accepted Accounting Principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transaction are recorded as necessary to permit preparation of financialstatements in accordance with Generally Accepted Accounting Principles and that receiptsand expenditure of the company are being made only in accordance with authorisation of themanagement 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

7. 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 projection 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

8. In our opinion the company has in all material respects an adequate internalfinancial controls systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccounts of India.

For P. R. REDDY & CO.
Firm Regn No.003268S
Chartered Accountants
Sd/-
P. RAGHUNADHA REDDY
Place: Hyderabad Partner
Date: 10 May 2016. Membership No. 23758