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Keerthi Industries Ltd.

BSE: 518011 Sector: Industrials
NSE: N.A. ISIN Code: INE145L01012
BSE LIVE 15:40 | 22 Sep 194.00 -8.90
(-4.39%)
OPEN

202.90

HIGH

202.90

LOW

192.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 202.90
PREVIOUS CLOSE 202.90
VOLUME 15143
52-Week high 214.00
52-Week low 103.00
P/E 8.41
Mkt Cap.(Rs cr) 156
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 202.90
CLOSE 202.90
VOLUME 15143
52-Week high 214.00
52-Week low 103.00
P/E 8.41
Mkt Cap.(Rs cr) 156
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Keerthi Industries Ltd. (KEERTHIINDUS) - Auditors Report

Company auditors report

To the Members of KEERTHI INDUSTRIESLIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of KEERTHI INDUSTRIES LIMITEDHYDERABAD TELANGANA ("The Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of Significant Policies and Other Explanatory Information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act2013("the Act")with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance 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) Rules2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and Matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

4. 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.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in statements. The procedures selected depend on the auditor’sjudgment including the assessment thefinancial 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 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 theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Audit Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India in the case of the Balance Sheet of the state ofaffairs of the Company as at 31 March 2016;in the case of the Statement of Profit andLoss of the profit the year ended on that date; and in the case of Cash Flow Statementof the cash flows for the year ended on that date.

8. Emphasis of matter

We draw attention to Note No. 25.4 to the financial statements relating to confirmationof balances in respect of some of the trade receivables loans & advances and tradepayables. Our opinion is not qualified in respect of this matter

Report on other Legal and Regulatory Requirements

9. 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 Act we give in the Annexure-A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

10. 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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) the Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;.

(d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of the Actread with rule Rule 7 of the Companies(Accounts) Rules2014 ; (e) on the basis of thewritten representations received from the directors as on 31st March 2016 taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2016from being appointed as a director in terms of Section 164 (2) of the Act ; (f) withrespect to the financialcontrols over financial reporting of the adequacy of the internalCompany and the operating effectiveness of such controls refer to our separate report in"Annexure B"; and (g) with respect to the other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations 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 contractsincluding derivative contracts for which there were any material foreseeable losses; iii.there were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

For K.S. RAO & CO.
Chartered Accountants
Firms’ Regn.No.003109S
Sd/-
(P.GOVARDHANA REDDY)
Place: Hyderabad Partner
Date: 28.05.2016 Membership No.029193

ANNEXURE-A REFERRED TO PARAGRAPH 9 OF OUR REPORT OF EVEN DATE

Statement on the Companies (Auditor’s Report)Order 2016

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

(i) (a) the Company maintains proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) the fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification;

(c) title deeds of immovable properties are held in the name of the Company;

(ii) Management had physically verified the inventory at reasonable intervals and nodiscrepancies were noticed on physical verification;

iii) (a) 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;

(b) in view of our comment in para iii (a) above paras 3( iii) (b) and (c) of theaforesaid Order are not applicable to the Company;

(iv) the Company has not advanced any loan not made investments not given guaranteesand not provided any security. Hence para 3(iv) of therefore said Order is not applicable;

(v) the Company has not accepted deposits from the public. Hence the provisions ofSections 73 to 76 and other relevant provisions of the Companies Act 2013 and theCompanies (Acceptance of Deposits) Rules 2014 are not applicable to the Company;

(vi) maintenance of cost records has been prescribed by the Central Government undersection 148(1) of the Act in respect of certain products manufactured by the Company andwe are of the opinion that prima facie the prescribed accounts and records have been madeand maintained

(vii) (a) according to the records the Company is regular in depositing withappropriate authorities undisputed statutory dues including Provident Fund InvestorEducation Fund Employees State’s Insurance Income Tax Sales-tax Service TaxCustoms duty Excise duty Cess and other material statutory dues applicable to theCompany. And there are no statutory dues which were in arrears as at 31st March 2016 fora period of more than six months from the date they became payable.

(b) there are no statutory dues which have not been deposited on account of any disputeother than sales tax and excise duty the details of which are given below:

S. No Name of the Statue Nature of Dues Amount (Rs.) Period to which amount related Forum where dispute is pending
1 AP General Sales Tax Act Tax on packing material 1877197 FY 1990-91 and FY 1991-92 Sales Tax Appellate Authority
2 Central Sales Tax Act Central Sales Tax 3925213* FY 2000-01 the Order was passed during FY 2007-08 AP Sales Tax Tribunal.
3 Commercial Taxes Dept. Karnataka Central Sales Tax 620112 FY 1993-94 February 2006 to August 2010 Hon’ble High Court of Karnataka
4 Central Excise Act Central Excise 19002358# Show cause notice received on 10.11.2010. CESTAT Bangalore

* Against the demand of Rs..3925213 the Company has paid Rs.1908835.

# Against the demand of Rs..19002358 the Company has paid Rs.2000000.

(viii) the Company has not defaulted in repayment of dues to banks. The company has notissued any debentures; (ix) on the basis of review of utilization of funds on overallbasis the term loans taken by the company were applied for the purposes for which theloans were obtained.

(x) we report that no fraud on or by the Company has been noticed or reported duringthe year.

(xi) the Company has paid or provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013; xii) the Company is not a Nidhi Company . xiii) based on the auditprocedures performed and according to the information and explanations given to us alltransactions with the related parties are in compliance with section 177 and section 188of the Companies Act 2013 and the details have been disclosed in the Financial Statementsetc. as required by the applicable accounting standards; xiv) the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review; xv) the Company has not entered into non-cashtransactions with directors or persons connected with him; xvi) the Company is notrequired to be registered u/s 45IA of the Reserve Bank of India

For K.S. RAO & CO.
Chartered Accountants
Firms’ Regn.No.003109S
Sd/-
(P.GOVARDHANA REDDY)
Place: Hyderabad Partner
Date: 28.05.2016 Membership No.029193

ANNEXURE B REFERRED TO IN PARAGRAPH 10 (f) OF OUR REPORT OF EVEN DATE

Re: KEERTHI INDUSTRIESLIMITED

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

1. We have audited the internal financial controls over financial reportingof KeerthiindustriesLimited("the Company") as of March 31 2016 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

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 Accountants of India". 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 prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ 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 deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyofthe 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.

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 purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policiesand procedures that (1) pertain to themaintenance of records that in reasonable detailaccurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparationof financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonableassurance regardingprevention or timely detection of unauthorized acquisition use ordisposition 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 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

8. 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 2016 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 K.S. RAO & CO.
Chartered Accountants
Firms’ Regn.No.003109S
Sd/-
(P.GOVARDHANA REDDY)
Place: Hyderabad Partner
Date: 28.05.2016 Membership No.029193