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Kavit Industries Ltd.

BSE: 524444 Sector: Industrials
NSE: N.A. ISIN Code: INE313M01014
BSE LIVE 15:10 | 22 Sep 17.15 -0.85
(-4.72%)
OPEN

17.95

HIGH

18.00

LOW

17.10

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 17.95
PREVIOUS CLOSE 18.00
VOLUME 2645
52-Week high 42.00
52-Week low 12.71
P/E 95.28
Mkt Cap.(Rs cr) 106
Buy Price 0.00
Buy Qty 0.00
Sell Price 17.15
Sell Qty 58.00
OPEN 17.95
CLOSE 18.00
VOLUME 2645
52-Week high 42.00
52-Week low 12.71
P/E 95.28
Mkt Cap.(Rs cr) 106
Buy Price 0.00
Buy Qty 0.00
Sell Price 17.15
Sell Qty 58.00

Kavit Industries Ltd. (KAVITINDUSTRIES) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR

To

The Members of

Kavit Industries Limited

(Formerly known as Atreya Petrochem Limited)

Report on the Financial Statement

We have audited the accompanying financial Statement of Kavit Industries Limited(Formerly Known as Atreya Petrochem Ltd.)(the Company) which comprises the Balance Sheetas at 31st March 2014 and the statement of Profit & Loss and Cash Flow Statement forthe year ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Financial Statements

The Company’s management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flow of the company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956 ("the Act") and inaccordance with the accounting principles generally accepted in India. This responsibilityincludes the design implementation and maintenance of internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.

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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;

b) in the case of the Profit and Loss Account of the profit for the year ended on thatdate ; and

c) in the case of the Cash Flow Statement the cash flows for the year ended on thatdate.

Report on other legal and Regulatory Requirement

1. As required by the Companies (Auditor’s Report) Order 2003 ("theOrder") issued by the Central Government of India in terms of subsection (4A) ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act we report that:

a) We have obtained all the information and explanations which to the best of ourknowledge 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 and Statement of Profit and Loss dealt with by this Report arein agreement with the books of account.

d) In our opinion the Balance Sheet and Statement of Profit and Loss comply with theAccounting Standards referred to in subsection (3C) of section 211 of the Companies Act1956.

e) On the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.

For Sheetal Samriya & Associates

Chartered Accountants

(Firm Registration No.: 011478C)

SD/-

Abhitesh Dubey

Partner

(Membership No.: 147923)

Vadodara 30 May 2014.

Annexure to Independent Auditor’s Report

(Referred to in paragraph 1 under ‘Report on Other Legal & RegulatoryRequirements’ section of our report of even date)

(i) Having regard to the nature of the Company’sbusiness/activities/results/during the year clause (vii) (xi)(xii)(xiii)(xix) ofparagraph 4 of the Order are not applicable to the Company.

(ii) In Respect of its Fixed Assets:

(a) As informed to us the Company is in the process of compiling records to showingfull particulars including quantitative details and situation of fixed assets.

(b) As explained to us fixed assets according to the practice of the Company arephysically verified by the management at reasonable intervals in a phasedverification-programme which in our opinion is reasonable looking to the size of theCompany and the nature of its business. As informed to us no material discrepancies havebeen noticed on verification;

(c) The Fixed Assets disposed-off during the year in our opinion do not constitute asubstantial part of the fixed assets of the company and such disposal has in our opinionnot affected the going concern status of the company.

(iii) In Respect of its Inventory:

(a) As informed to us the Inventory of Finished and semi-finished goods and rawmaterials at works were physical verified by the management at reasonable intervals duringthe year. In our opinion having regard to the nature and location of stock the frequencyof verification is reasonable.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of inventory and no material discrepancy werenoticed on physical verification.

(iv) The Company has granted loans to 2 company and listed in the register maintainedunder Section 301 of the Companies Act 1956. The year balance of loans granted to thesewas Rs..115.77 Lacs. (P.Y. Rs..127.44 Lacs.)

In our opinion and according to the information and explanations given to us the termsand condition of loan given to the parties covered under in the register maintained undersection 301of the Companies Act 1956 are not prima facie prejudicial to the interest ofthe Company. According to the information and explanations given to us no repaymentschedule has been specified and accordingly the question of regularity in payment ofprincipal amount and interest wherever applicable does not arise. However the said loan isrepayable on demand.

The Company has taken unsecured loans from 3 companies and 1 Directors listed in theRegister maintained under Section 301 of the Companies Act 1956. The year balance ofloans taken from these was Rs..202.53 Lacs. (P.Y. Rs..164.39 Lacs) In respect of aboveLoans taken no repayment schedule has been specified with regard to the Interest /Repayment or any other terms and conditions.

(v) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for the saleof goods and services. Further on the basis of our examination of the books and recordsof the Company and according to the information and explanations given to us we haveneither come across nor have been informed of any continuing failure to correct majorweaknesses in the aforesaid internal control system.

(vi) According to the information and explanations given to us the details oftransaction that needed to be entered in the register in pursuance of section 301 of theCompany Act. 1956 have been so entered. According to information and explanations givento us the transactions of purchase and sale of goods/services made in pursuance of suchcontracts or arrangements have been made at prices which are reasonable having regard toprevailing market prices at the relevant time.

(vii) The Company has not accepted deposits from other corporate which attracting theprovisions of section 58A and 58AA of the Companies Act 1956 and the rules framed thereunder.

(viii) The system of internal audit of the Company needs to be strengthened andcommensurate with the size and nature of its business.

(ix) In respect of statutory dues:

(a) According to the information explanation and records verified by us the Companyhas generally been regular in depositing Income Tax Sales Tax Wealth Tax Service TaxCustom duty Excise Duty Cess other material statutory dues applicable to it with theappropriate authorities. We are informed that the company intends to obtains exemptionfrom Provident Fund Employees state insurance Act.

(b) There were no undisputed amounts payable in respect of Income Tax Sales Tax Wealth Tax Service Tax Excise Duty Custom Duty Cess and other material statutory duesin arrears as at 31March 2014 for a period of more than six months for the date theybecome payable Except for Motor Spirit Tax of Rs..226238/-.

(c) Details of dues of Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty and Cess which have not been deposited as on 31 March2014 on account ofdisputes are given below:

Name of the Statue Nature of Dues Forum where Dispute is pending Period to which amount relates Amount involved
(Amount in Rs.Rs. Rs..)
Income Tax Act 1961 Income Tax Tribunal A.Y.1999-2000 1664300
Income Tax Tribunal A.Y.2000-2001 14141065
Income Tax Assistant Commissioner A.Y.2003-2004 12820
Income Tax Assistant Commissioner A.Y.2004-2005 5781
Central Excise Act 1944 Excise Duty Remanded by Authority A.Y.2000-2001 88765288

(x) Accumulated losses at the end of financial year ended on 31st March2014 is Rs.. 13223922.49/- which does not exceed 50% of its net worth and it has notincurred cash losses in the financial year ended on the date and in the immediatelypreceding financial Year.

(xi) The Company is dealing in or trading in share securities Debenture or otherinvestment. The Company has maintained proper records of the transactions and contracts inrespect of dealing or trading in shares securities debentures and other investments andtimely entries have been made therein. Further such securities have been held by theCompany in its own name or are in the process of transfer in its own Company name.

(xii) According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks or financial institutions.

(xiii) According to the information and explanations given to us and as per recordsmade available for our verification the Company has not taken any term loan during theyear.

(xiv) In our opinion and according to the information and explanation given to us andoverall examination of the balance sheet of the company we report that funds raised onshort term basis have prima facie not been used during the year for long terminvestment.

(xv) As the Company has not made any preferential allotment of shares during the yearto parties and companies covered in the Register maintained under Section 301 of the Actthe provisions of clause 4(xviii) of the Order are not applicable to the Company.

(xvi) The Company has not raised any money by public issue during the year.

(xvii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud was noticed or reported duringyear.

For Sheetal Samriya & Associates

Chartered Accountants

(Firm Registration No.:011478C)

SD/-

Abhitesh Dubey

Partner

Membership No.: 147923

Vadodara 30 May 2014.