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Kewal Kiran Clothing Ltd.

BSE: 532732 Sector: Industrials
NSE: KKCL ISIN Code: INE401H01017
BSE LIVE 12:27 | 24 Nov 1887.05 -0.05
(0.00%)
OPEN

1887.15

HIGH

1891.15

LOW

1844.00

NSE 15:31 | 24 Nov 1881.40 6.95
(0.37%)
OPEN

1903.00

HIGH

1903.00

LOW

1871.00

OPEN 1887.15
PREVIOUS CLOSE 1887.10
VOLUME 28
52-Week high 1980.00
52-Week low 1575.00
P/E 30.42
Mkt Cap.(Rs cr) 2,327
Buy Price 1866.00
Buy Qty 3.00
Sell Price 1887.05
Sell Qty 16.00
OPEN 1887.15
CLOSE 1887.10
VOLUME 28
52-Week high 1980.00
52-Week low 1575.00
P/E 30.42
Mkt Cap.(Rs cr) 2,327
Buy Price 1866.00
Buy Qty 3.00
Sell Price 1887.05
Sell Qty 16.00

Kewal Kiran Clothing Ltd. (KKCL) - Auditors Report

Company auditors report

TO

THE MEMBERS OFKEWAL 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 2017 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 standalone 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 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

AUDITOR'S 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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments; the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone 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 2017 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 Section 143(11) of the Act we givein the Annexure I a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 standalone financial statements – Refer Note 2.9.5 and 2.37 (a) tothe standalone financial statements; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses;

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

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management – Refer Note 2.49to the standalone financial statements.

For N. A. Shah Associates LLP For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm's registration number Firm's registration number
116560W/W100149 113496W
Milan Mody Satish Trivedi
Partner Partner
Membership number 103286 Membership number 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: April 25 2017 Date: April 25 2017
Effective 14th July 2016
N. A. Shah Associates
– ROF Registration no. BA71407
converted into
N. A. Shah Associates LLP
– LLP Identification no. AAG-7909

Annexure I to Independent Auditor's Report for the year ended 31st March 2017

[Referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" 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' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues asapplicable to the Company during the year with the appropriate authorities. There are noundisputed statutory dues payable in respect to above statues outstanding as at 31stMarch 2017 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 2017 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
The Income Tax Act 1961 Income Tax and Interest 689290 Assessment year 2012-2013 CIT (Appeal) – Mumbai
The Income Tax Act 1961 (*) Income Tax and Interest 885540 Assessment year 2011-2012 ITAT – Mumbai
The Income Tax Act 1961(**) Income Tax and Interest 6894195 Assessment year 2005-2006 Bombay High Court (Appeal filed by the department)
The Income Tax Act 1961 Income Tax and Interest 501765 Assessment year 2014-2015 CIT (Appeal) – Mumbai

(*) Adjusted against the refund of assessment year 2013-14 (**) Adjusted against therefund 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) During the course of our examination of the books of account and records of theCompany carried out in accordance with generally accepted auditing practices in India andaccording to information and explanation given to us we have neither noticed nor havebeen informed by the management any incidence of fraud by the Company or on the Companyby its officers or employees.

(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 standalone financial statements as required by the applicableAccounting Standards (AS) 18 Related Party Disclosures specified under section 133 of theAct read with 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) ln 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 LLP For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm's registration number Firm's registration number
116560W/W100149 113496W
Milan Mody Satish Trivedi
Partner Partner
Membership number 103286 Membership number 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: April 25 2017 Date: April 25 2017
Effective 14th July 2016
N. A. Shah Associates
– ROF Registration no. BA71407
converted into
N. A. Shah Associates LLP
– LLP Identification no. AAG-7909

Annexure II to Independent Auditor's Report for the year ended 31st March 2017

[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 I OF THE ACT

We have audited the internal financial controls over financial reporting of Kewal KiranClothing Limited ("the Company") as of 31st March 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 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 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 process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial 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 31st March 2017 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 LLP For Jain & Trivedi
Chartered Accountants Chartered Accountants
Firm's registration number Firm's registration number
116560W/W100149 113496W
Milan Mody Satish Trivedi
Partner Partner
Membership number 103286 Membership number 38317
Place of signature: Mumbai Place of signature: Mumbai
Date: April 25 2017 Date: April 25 2017
Effective 14th July 2016
N. A. Shah Associates
– ROF Registration no. BA71407 converted into
N. A. Shah Associates LLP
– LLP Identification no. AAG-7909