You are here » Home » Companies » Company Overview » Kennametal India Ltd

Kennametal India Ltd.

BSE: 505890 Sector: Engineering
NSE: WIDIA ISIN Code: INE717A01029
BSE LIVE 19:40 | 19 Oct 632.15 3.15
(0.50%)
OPEN

654.95

HIGH

654.95

LOW

630.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 654.95
PREVIOUS CLOSE 629.00
VOLUME 500
52-Week high 713.00
52-Week low 555.00
P/E 57.42
Mkt Cap.(Rs cr) 1,389
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 654.95
CLOSE 629.00
VOLUME 500
52-Week high 713.00
52-Week low 555.00
P/E 57.42
Mkt Cap.(Rs cr) 1,389
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kennametal India Ltd. (WIDIA) - Auditors Report

Company auditors report

To the Members of Kennametal India Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of Kennametal India Limited("the Company") which comprise the Balance Sheet as at June 302015 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting 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 in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements to 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 of 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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the Accounting Standards and matters which are required to be included in theaudit report.

5. 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 theInstitute 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' 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.

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

Opinion

8. 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 of the state of affairs of the Company as at June302015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order 2015' issued by the CentralGovernment of India in terms of subsection (II) of Section 143 of the Act (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in theAnnexure a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 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 financial statements comply with the AccountingStandards specified under Section 133 of theAct read with Rule 7 of the Companies(Accounts) Rules2014.

(e) On the basis of the written representations received from the directors as on June302015 taken on record by the Board of Directors none of the directors is disqualifiedas on June 30 2015 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule I I 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 has disclosed the impact of pending litigations as at June 302015 onits financial position in its financial statements - Refer Note 26.

ii. The Company has long-term contracts as at June 302015 for which there were nomaterial foreseeable losses.There are no long-term derivative contracts.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended June 302015.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number (FRN):007567S/S-2000I2
Chartered Accountants
(Formerly Price Waterhouse & Co. Bangalore
FRN: 007567S)
Shivakumar Hegde
Place: Bangalore Partner
Date: August 212015 Membership Number: 204627

Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Kennametal India Limited on the financial statements as of and for the yearended June 30 2015

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

ii. (a) The inventory has been physically verified by the Management during the year.In our opinion the frequency of verification is reasonable.

(b) In our opinion the procedures of physical verification of inventory followed bythe Management are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the Act.Therefore the provisions of Clause 3(iii) (iii)(a) and (iii)(b) of the Order are notapplicable to the Company.

iv. 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.

v. The Company has not accepted any deposits from the public within the meaning ofSections 737475 and 76 of the Act and the rules framed there under to the extentnotified.

vi. We have broadly reviewed the books of account maintained by the Company in respectof products where pursuant to the rules made by the Central Government of India themaintenance of cost records has been specified under sub-section (I) of Section 148 of theAct and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax wealth tax service tax duty of customs duty of excise value added taxcess and other material statutory duesas applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of duty of customs and wealth tax which havenot been deposited on account of any dispute.The particulars of dues of income tax salestax service tax and duty of excise as at June 302015 which have not been deposited onaccount of a disputeare as follows:

Name of the statute Nature of dues Amount U ) Period to which the amount relates Forum where the dispute is pending
The Central Excise Act 1944 Excise duty/ Service tax 52450 January 1998 to September 201 1 The Customs Excise & Service Tax Appellate Tribunal (CESTAT) Bangalore
851264 February 1992 to August 1993 The Supreme Court of India
46101 13 (*l) April 2006 to June 2013 CESTAT Bangalore
The Finance Act 1994 Service tax 576157 (*2) April 2007 to March 2008 CESTAT Bangalore
237458 September 2005 to November 2009 CESTAT Bangalore
The Andhra Pradesh General Sales Tax Act 1957 Sales tax 5872886 (*3) April 2003 to March 2004 The Sales Tax Appellate Tribunal Hyderabad
The Delhi Sales Tax Act 1975 Sales tax 78550 (*4) April 2004 to March 2005 The Joint Commissioner (Appeals) Delhi
The Central Sales Tax Act 1956 Sales tax 5711151 April 2006 to March 2010 The High Court of Karnataka
The Karnataka Value Added Tax Act 2003 Sales tax 820124 April 2005 to March 2010 The High Court of Karnataka
The Karnataka Tax on Entry of Goods Act 1979 Entry tax Nil (*5) April 2010 to June 2014 The Commissioner of Commercial Taxes Bangalore
The Uttar Pradesh Value Added Tax Act 2008 Sales tax Nil (*6) May 201 1 The Joint Commissioner of Appeals Sonabhadhra Uttar Pradesh
The Karnataka Value Added Tax Act 2003 Sales Tax Nil (*7) April 2005 to March 2006 The Joint Commissioner of Commercial taxes (Appeals) Bangalore
Sales Tax Nil (*8) April 2011 to March 2012 The Joint Commissioner of Commercial taxes (Appeals) Bangalore
Sales Tax Nil (*9) April 2012 to March 2013 The Joint Commissioner of Commercial taxes (Appeals) Bangalore
Sales Tax 50535366 (*I0) April 2013 to March 2014 The Joint Commissioner of Commercial taxes (Appeals) Bangalore
The Income Tax Income tax 2198066 (* 1 1) April 1993 to March The Supreme Court
Act 1961 1994; and April 1999 to March 2001 of India
Nil fi2) April 1999 to March 2001 The Commissioner of Income Tax (Appeals) Bangalore
Nil (*I3) April 2006 to March 2007 The Income Tax Appellate Tribunal Bangalore
Nil (*l4) April 2007 to March 2008 The Commissioner of Income Tax (Appeals) LTU Bangalore
Nil (*l5) April 2008 to March 2009 The Commissioner of Income Tax (Appeals) LTU Bangalore
Nil (*l6) April 2009 to March 2010 The Commissioner of Income Tax (Appeals) LTU Bangalore
50842950 April 2010 to March The Commissioner of
201 1 Income Tax (Appeals) LTU Bangalore
Nil (*l7) April 2012 to March 2013 The Commissioner of Income Tax (Appeals) LTU Bangalore

(*l) Net of Rs.5094915 paid "under protest". (*2) Net of Rs.576227 paid"under protest".

(*3) Net of Rs.5872886 paid "under protest". (*4) Net of Rs.78550 paid"under protest".

(*5) Net of Rs.7529692 paid "under protest". (*6) Net of Rs.404400 paid"under protest".

(*7) Net of Rs.370607 paid "under protest".

(*8) Net of Rs.2141073 paid "under protest". (*9) Net of Rs.5345294 paid"under protest". (*I0) Net of Rs.5000000 paid "under protest". (*lI) Net of Rs.750375 paid "under protest". (*I2) Net of Rs.27667829 paid"under protest". (*I3) Net of Rs.69776571 paid "under protest".(*I4) Net of Rs.54009650 paid "under protest". (*I5) Net of Rs.50365440 paid"under protest". (*I6) Net of Rs.53038036 paid "under protest". (*17) Net of Rs.215466 paid "under protest".

c) There are no amounts required to be transferred by the Company to the InvestorEducation and Protection Fund in accordance with the provisions of the Companies Act 1956and the rules made thereunder.

viii. The Company has no accumulated losses as at the end of the financial year and ithas not incurred any cash losses in the financial year ended on that date or in theimmediately preceding financial year.

ix. As the Company does not have any borrowings from any financial institution or banknor has it issued any debentures as at the balance sheet date 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 theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year. Accordingly the provisions of Clause 3(x) of the Order arenot applicable to the Company.

xi. The Company has not raised any term loans.Accordingly the provisions of Clause3(xi) of the Order are not applicable to the Company.

xii. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of any such case by the Management.

For Price Waterhouse & Co Bangalore LLP
Firm Registration Number (FRN):007567S/S-2000I2
Chartered Accountants
(Formerly Price Waterhouse & Co. Bangalore
FRN: 007567S)
Shivakumar Hegde
Place: Bangalore Partner
Date: August 212015 Membership Number: 204627