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Kerala Ayurveda Ltd.

BSE: 530163 Sector: Health care
NSE: N.A. ISIN Code: INE817B01025
BSE LIVE 15:28 | 18 Oct 99.75 9.05
(9.98%)
OPEN

99.00

HIGH

99.75

LOW

95.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 99.00
PREVIOUS CLOSE 90.70
VOLUME 41783
52-Week high 122.80
52-Week low 56.00
P/E 55.11
Mkt Cap.(Rs cr) 105
Buy Price 99.75
Buy Qty 73677.00
Sell Price 0.00
Sell Qty 0.00
OPEN 99.00
CLOSE 90.70
VOLUME 41783
52-Week high 122.80
52-Week low 56.00
P/E 55.11
Mkt Cap.(Rs cr) 105
Buy Price 99.75
Buy Qty 73677.00
Sell Price 0.00
Sell Qty 0.00

Kerala Ayurveda Ltd. (KERALAAYURVEDA) - Auditors Report

Company auditors report

To

The Members of

KERALA AYURVEDA LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial statements of Kerala AyurvedaLimited ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

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.

Auditors' 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

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 judgement 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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

1. 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 Section143 ofthe Act we give in the Annexure B a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. 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 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith 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 and 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 A" and

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 information and according to the explanations 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 contractsfor which there were any material foreseeable losses.

(iii) The company does not have any amounts required to be transferred to the InvestorEducation and Protection Fund.

For BIJU GEORGE & CO
Chart ered Account ant s
FRN: 007920S
Sd/ -
BIJU GEORGE B. Sc FCA DISA(ICA)
Thodupuzha Proprietor
28th May 2016 MEM REGN No. 206233

ANNEXURE - A TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1(f) under the heading of "Report on Other Legal andRegulatory Requirements" section of our report of even date

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of KeralaAyurveda Limited ( 'the Company') as of March 31 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

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 Reportingissued by the Institute of Chartered Accountants of India ( the Rs. Guidance Note'). 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 safeguarding ofits 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 Act.

Auditors' Responsibility

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 Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with the 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.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 existsand testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

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

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement 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

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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For BIJU GEORGE & CO
Chart ered Account ant s
FRN: 007920S
Sd/ -
BIJU GEORGE B. Sc FCA DISA(ICA)
Thodupuzha Proprietor
28th May 2016 MEM REGN No. 206233

ANNEXURE- B TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditors Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2016 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of 3 years. In accordancewith this programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification .In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. As explained to us physical verification of inventory has been conducted atreasonable intervals by the management and discrepancies noticed on such verificationbetween physical stocks and book records were not material considering the operations ofthe Company and the same have been properly dealt with in the books of account.

iii. The Company has granted loans to its subsidiaries covered in the registermaintained under section 189 of the Companies Act 2013 ('the act')

(a) In our opinion the terms and conditions on which the loans had been granted tosubsidiaries listed in the register maintained under section 189 of the Act were notprimafacie prejudicial to the interest of the Company

(b)The loans are interest free and the terms of arrangements do not stipulate anyrepayment schedule and the loans are repayable on demand. Accordingly the provisions ofclause (iii) (b) of the order is not applicable.

(c) There are no overdue amounts in respect of the loans granted to the body corporateslisted In the register maintained under section 189 of the Act

iv. In our opinion and according to the information and explanations given to as by themanagement the company has complied with the provisions of the section 185 and 186 of theCompanies Act 2013 with respect to loans investments guarantees and securities made.

v. In our opinion and according to the information and explanations given to as by themanagement the company has not accepted any deposit within the meaning of sections 73 and76 of the Companies Act 2013 and the rules framed there under.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government under section 148 (1) of the Companies act 2013for maintenance of cost records and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

vii. According to the records of the company and information and explanations given tous the Company has generally been regular in depositing with the appropriate authoritiesundisputed statutory dues including Provident fund Employees State Insurance Income TaxSales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess and anyother statutory dues applicable to it. There are no undisputed statutory dues as referredto above as at 31st March 2016 outstanding for a period of more than six months from thedate they became payable.

viii. Based on our audit procedures and according to the information and explanationsgiven to as by the management the company has not defaulted in repayment of loans orborrowings to a financial institutions BankGovernment or dues to debenture holders. TheCompany has not issued any debenture .

ix. In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they are obtained. Further as perthe records the Company did not raise any money by way of initial public offer furtherpublic offer (including debt instruments).

x. Based upon the audit procedures performed and to the best of our knowledge andbelief and according to the information and explanations given to as no fraud by theCompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3 (xv)of the Order is not applicable.

xvi. The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.

For BIJU GEORGE & CO
Chart ered Account ant s
FRN: 007920S
Sd/ -
BIJU GEORGE B. Sc FCA DISA(ICA)
Thodupuzha Proprietor
28t h May 2016 MEM REGN No. 206233