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Kewal Kiran Clothing Ltd.

BSE: 532732 Sector: Industrials
NSE: KKCL ISIN Code: INE401H01017
BSE LIVE 15:40 | 14 Sep 1724.60 54.60
(3.27%)
OPEN

1690.00

HIGH

1740.00

LOW

1679.95

NSE 15:31 | 19 Sep 1732.50 2.50
(0.14%)
OPEN

1702.25

HIGH

1735.00

LOW

1702.00

OPEN 1690.00
PREVIOUS CLOSE 1670.00
VOLUME 397
52-Week high 1993.15
52-Week low 1575.00
P/E 30.03
Mkt Cap.(Rs cr) 2,126
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1690.00
CLOSE 1670.00
VOLUME 397
52-Week high 1993.15
52-Week low 1575.00
P/E 30.03
Mkt Cap.(Rs cr) 2,126
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kewal Kiran Clothing Ltd. (KKCL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

KEWAL KIRAN CLOTHING LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Kewal KiranClothing Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (together referred to as financial statements).

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 financial statements that 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 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.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessments;the auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of 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 financial statements.

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 of the state of affairs of the Company as at 31stMarch 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 (‘theOrder’) issued by the Central Government of India in terms of Section 143(11) of theAct we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4of the Order.

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 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 the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of the written representations received from the directors as on 31stMarch 2016 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 adequacy of internal financial controls system over financialreporting of the Company and operating effectiveness of such controls refer to ourseparate report given in Annexure II; 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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 2.37 (a) to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For N. A. Shah Associates For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm’s Registration No.: 116560W Firm’s Registration No. : 113496W

 

Sandeep Shah Satish Trivedi
Partner Partner
Membership No. : 37381 Membership No. : 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: May 23 2016 Date: May 23 2016

Annexure I to Independent Auditor’s Report for the year ended 31st March 2016[Referred to in paragraph 1 under the heading "Report on other legal and regulatoryrequirements" of our report of even date]

(i) In respect of fixed assets:

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

(b) Fixed assets have been physically verified during the year by the management. Inour opinion the frequency of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) According to the information and explanation 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. Also refer note no. 2.9.5 to the standalone financialstatements.

(ii) The inventories (other than lying with third parties) have been physicallyverified during the year by the management. In respect of inventories lying with the thirdparties confirmations have been obtained by the company and there were no discrepancies.In our opinion the frequency of such verification is reasonable. The discrepanciesnoticed on verification between the physical stocks and the book records were notmaterial.

(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 Act. Therefore the requirement of clause (iii)(a) (iii)(b) and(iii)(c) of paragraph 3 of the Order are not applicable to the Company.

(iv) The Company has not granted any loans or provided any guarantees or securitiescovered under section 185 and section 186 of the Act. In respect of investments made bythe Company in our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Section 186 of the Act.

(v) In our opinion and according to the explanations given to us the Company has notaccepted any deposits. Therefore question of reporting compliance with directives issuedby the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder does not arise. We are informed that noorder relating to the Company has been passed by the Company law Board or National CompanyLaw Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) The Central Government has not prescribed maintenance of cost records undersection 148 (1) of the Act for any of the products / services of the Company. Accordinglyclause (vi) of paragraph 3 the Order is not applicable to the Company.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of records of the Company in respect of amounts deducted / accrued in thebooks of account the Company has been regular in depositing undisputed statutory duesincluding Provident Fund Employees Rs. State Insurance Income Tax Sales Tax ServiceTax Duty of Customs Duty of Excise Value Added Tax Cess and any other statutory duesas applicable to the Company during the year with the appropriate authorities. There areno undisputed statutory dues payable in respect to above statues outstanding as at 31stMarch 2016 for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there is no disputed Sales-tax Service TaxDuty of Customs Duty of Excise and Value Added Tax as on 31st March 2016 which have notbeen deposited except the following disputed dues which have not been deposited since thematters are pending with the relevant forum:

Nature of statue Nature of dues Amount Rs. Period to which it relates Forum where dispute is pending
Income Tax Act 1961 Income Tax and Interest 689290 Assessment year 2012-2013 CIT (Appeal) - Mumbai
Income Tax Act 1961 Income Tax and Interest 885540 Assessment year 2011-2012 CIT (Appeal) - Mumbai
Income Tax Act 1961(*) Income Tax and Interest 6894195 Assessment year 2005-2006 Bombay High Court (filed by the department)

(*) Adjusted against the refund of assessment year 2007-08

(viii) Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the Company has not defaulted in repaymentof loans or borrowings to banks during the year. There are no loans or borrowings fromfinancial institutions / debenture holders / government.

(ix) During the year the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans. Accordingly clause(ix) of paragraph 3 of the Order is not applicable to the Company.

(x) According to information and explanation given to us there are no incidence offraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.

(xi) According to the information and explanation given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) The Company is not a Nidhi Company. Therefore the provisions of clause (xii) ofparagraph 3 of the Order are not applicable to the Company.

(xiii) According to the information and explanation given to us and based on ourexamination of the records transactions with the related parties are in compliance withSection 177 and 188 of the Act where applicable and the details of such transactions havebeen disclosed in the financial statements as required by the applicable AccountingStandards (AS) 18 Related Party Disclosures specified under section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Therefore the provisions of clause (xiv) ofparagraph 3 of the Order are not applicable to the Company.

(xv) l n our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with directorsor persons connected with the directors. Therefore the provisions of clause (xv) ofparagraph 3 of the Order are not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-lA of the ReserveBank of lndia Act 1934. Therefore the provisions of the clause (xvi) of the Order arenot applicable to the Company.

For N. A. Shah Associates For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm’s Registration No.: 116560W Firm’s Registration No. : 113496W
Sandeep Shah Satish Trivedi
Partner Partner
Membership No. : 37381 Membership No. : 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: May 23 2016 Date: May 23 2016

Annexure II to Independent Auditor’s Report for the year ended 31st March 2016

[Referred to in paragraph 2 (f) under the heading "Report on other legal andregulatory requirements" of our report of even date]

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER SECTION 143(3)(1) OF THE ACT

We have audited the internal financial controls over financial reporting of Kewal KiranClothing Limited ("the Company") as of 31st March 2016 in conjunction withour audit of the financial statements of the Company for the year ended 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 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.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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 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 transactions are recorded as

necessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company’s assets that could havea 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 controlover 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 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 theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For N. A. Shah Associates For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm’s Registration No.: 116560W Firm’s Registration No. : 113496W
Sandeep Shah Satish Trivedi
Partner Partner
Membership No. : 37381 Membership No. : 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: May 23 2016 Date: May 23 2016