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Kaveri Seed Company Ltd.

BSE: 532899 Sector: Others
NSE: KSCL ISIN Code: INE455I01029
BSE 15:47 | 16 Feb 459.25 -13.20
(-2.79%)
OPEN

472.10

HIGH

475.45

LOW

456.00

NSE 15:56 | 16 Feb 459.50 -12.60
(-2.67%)
OPEN

469.95

HIGH

477.30

LOW

456.95

OPEN 472.10
PREVIOUS CLOSE 472.45
VOLUME 14995
52-Week high 708.10
52-Week low 433.00
P/E 15.21
Mkt Cap.(Rs cr) 3,036
Buy Price 0.00
Buy Qty 0.00
Sell Price 459.25
Sell Qty 14.00
OPEN 472.10
CLOSE 472.45
VOLUME 14995
52-Week high 708.10
52-Week low 433.00
P/E 15.21
Mkt Cap.(Rs cr) 3,036
Buy Price 0.00
Buy Qty 0.00
Sell Price 459.25
Sell Qty 14.00

Kaveri Seed Company Ltd. (KSCL) - Auditors Report

Company auditors report

Independent Auditor's Report

TO

THE MEMBERS OF

M/S. KAVERI SEED COMPANY LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of M/S. KAVERISEED COMPANY LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss (Including the other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation. [herein after referred to as "Standalone Ind AS financialstatements"]

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 cash flows and changes in equity of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Ind AS financial statements that give atrue 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 standalone Ind AS financialstatements based on our audit.

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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat 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 we have obtained is sufficient and appropriate toprovide a basis for our audit opinion 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 the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS in thecase of the Balance Sheet of the state of affairs of the Company as at 31st March 2017in the case of the Statement of Profit and Loss of the Profit for the year ended on thatdate in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate and in the case of Statement of

Changes in Equity of the changes in equity of the year ended on that date.

Report on Other Legal and Regulatory Requirements:

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 Companies Act 2013 we give in the "Annexure – A" a statement on thematters 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 the Cash Flow Statement andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under section 133 of the Companies Act 2013read 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 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164 (2) of the Companies Act 2013.

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

iv. The company has provided requisite disclosures in the Standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the company and as produced to us by the Management.

For P R REDDY & CO
Firm Regn No.003268S
CHARTERED ACCOUNTANTS
sd/-
P. RAGHUNADHA REDDY
Place: Hyderabad Partner
Date: 24th May 2017. Membership No. 23758

Annexure - A referred to in the Auditors' Report to the Members of

M/S.KAVERI SEED COMPANY LIMITED for the year ended 31st March 2017. We report that: i.a. The company has maintained proper records showing full particulars includingquantitative details and 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. Accordingly paragraph 3(iii) ofthe Order is not applicable to the Company.

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' undisputedstatutory dues including provident fund Employees' state insurance income-taxsales-tax service tax customs duty duty of excise Value added tax cess and othermaterial statutory dues as applicable to it. According to the information and explanationsgiven to us there are no undisputed amounts payable in respect aforesaid dues as at 31stMarch 2017 for a period of more than six months from the date they became 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 Rs. Period to which the amount Relates Forum where dispute is pending
Central Excise Act Excise Duty 27658572*# April2010 To March 2014 Directorate General of Central Excise - Intelligence Zonal Unit Begumpet Hyderabad.
Karnataka VAT Act VATPenalty& Interest 56155366 $ April2009 To March 2010 Deputy Commissioner of Commercial Taxes (Audit) Davangere Karnataka
APGST Act Purchase Tax 2236467 & April2003 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 Excise Hyderabad IV Commissionerate Hyderabad.

$. The company has submitted application to the Deputy Commissioner of CommercialTaxes Davangere Karnataka for rectification of the Assessment Order.

&. The company has filed appeal before Hon'ble High Court of AndhrapradeshHyderabad.

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. Accordingly the provisions of Clause3(ix) of the Order are not applicable to the Company.

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 with requisite approvals mandated in theprovision of section 197 read 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 StandaloneInd AS financial Statements as required by applicable accounting standards.

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. Therefore the provisionsof clause 3(xiv) of the Order are not applicable to the Company.

xv. According to the information and explanations given to us during the year thecompany has not entered in to any non-cash transactions with directors or personsconnected with 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. Accordingly the provisions of Clause 3(xvi) of the Order are not applicable tothe Company.

For P R REDDY & CO
Firm Regn No.003268S
CHARTERED ACCOUNTANTS
sd/-
P. RAGHUNADHA REDDY
Place: Hyderabad Partner
Date: 24th May 2017. Membership No. 23758

Annexure - B referred to Independent Auditor's Report to the Members of M/S.KAVERISEED COMPANY LIMITED for the year ended 31st March 2017.

Referred to in the Independent Auditor's Report of even date to the members of KaveriSeed Company Limited on the standalone Ind AS financial statements for the year endedMarch 31 2017.

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 2017 in conjunction withour audit of the standalone Ind AS financial statements of the company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

2. 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 Reporting [the"Guidance Note"] issued by the Institute of Chartered Accounts of India["ICAI"]. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the preventing and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

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 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 ICAI. Those standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 risks of thematerial misstatement of the Standalone Ind AS financial statements whether due to fraudor 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 controls systemover 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 authorizations ofthe management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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

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 2017 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: 24th May 2017. Membership No. 23758