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Khaitan (India) Ltd.

BSE: 590068 Sector: Agri and agri inputs
NSE: KHAITANLTD ISIN Code: INE731C01018
BSE LIVE 15:15 | 15 Dec 28.60 0.95
(3.44%)
OPEN

26.55

HIGH

28.60

LOW

26.55

NSE 12:04 | 06 Oct Stock Is Not Traded.
OPEN 26.55
PREVIOUS CLOSE 27.65
VOLUME 2747
52-Week high 29.00
52-Week low 10.18
P/E 2.59
Mkt Cap.(Rs cr) 14
Buy Price 28.00
Buy Qty 877.00
Sell Price 29.00
Sell Qty 200.00
OPEN 26.55
CLOSE 27.65
VOLUME 2747
52-Week high 29.00
52-Week low 10.18
P/E 2.59
Mkt Cap.(Rs cr) 14
Buy Price 28.00
Buy Qty 877.00
Sell Price 29.00
Sell Qty 200.00

Khaitan (India) Ltd. (KHAITANLTD) - Auditors Report

Company auditors report

To

The Members of Khaitan (India) Limited Kolkata

Report on the Financial Statements:

1. We have audited the accompanying financial statements of Khaitan (India) Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of 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 insection 134(5) of the Companies Act 2013 ("the act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principle generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts) Rules2014 .

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financial controls that were operating effectively for insuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementwhether due to fraud or error.

Auditors’ 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 and auditingstandards and matters which are required to be included in the audit report under theprovision of the Act and the rules made there under.

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.

4. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 assessmentsthe 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 but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system operating over financial reporting and the operating effectiveness of suchcontrols . An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made bycompany’s’ Directors as well as evaluating the overall presentation of thefinancial statements.

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

5. Basis of Qualified Opinion:

a. Attention is provided to Note no. 14 regarding deferred tax asset which have notbeen written off amounting to Rs.32643751/- being recognized in the Balance Sheet. If theDeferred tax asset had been written off during the year there would be a loss ofRs.5595687/- as against the profit of Rs.27148064/- shown in these financial statements.Deferred tax asset balance in the Balance sheet would amount to ‘NIL’ as againstRs.32643751/- as disclosed in these financial statements.

b). Closing balances of Debtors Creditors loans deposits advances old liabilitiesrelating to gratuity land rent & panchayat tax and some bank balances are unconfirmedand fixed deposit receipts and National Saving certificates are not available with thecompany in respect of which we are unable to express our opinion.

6. Qualified Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matter referred to in paragraph 5 above the financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

7. Emphasis of Matter:

Without qualifying our opinion we draw attention to the following matters:

Attention is drawn to Note No. 2(f) regarding valuation of planted trees on estimatedrealizable value being technical in natureand Notes on financial statements 5 Long TermBorrowings No 2 regarding written back of SUGAR DEVELOPMENT FUND we are unable to expressour opinion.

8. Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act 2013 we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable .

9. As required by section 143(3) of the Act we report that:

a) except for the matter referred to in paragraph 5 above we have sought and obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit;

b) in our opinion except for the matter referred to in paragraph 5 above proper booksof account as required by law have been kept by the Company so far as appears from ourexamination of those books;

c) except for the matter referred to in paragraph 5 above the Balance Sheet theStatement of Profit and Loss and the Cash Flow Statement dealt with by this Report are inagreement with the books of account;

d) in our opinion except for the matter referred to in paragraph 5 above the aforesaid financial statements comply with the accounting standards specified under section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) on the basis of written representations received from the directors as on March312017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of section164 (2) of the Act.

f) With respect to the other matters to be included in the Auditors’ 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 :

g) There is no amount required to be transferred to the Investor Education andProtection Fund by the Company

h) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated 8th November 2016 of the Ministry of Finance during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management - Refer Note No.2.39 to the financial statements.

The company has disclosed the impact of pending litigations on its financial positionin its financial statements 31 refer note 2 (M) to the financial statements

For O P Sharma and Associates
Chartered Accountants
B-3 8th Floor Saltee Spacio Registration No 500128 N
1 Mall Road CA Om Prakash Sharma
Kolkata-700080 Proprietor
The 12th June 2017 Membership No. 070762

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 8 WITH THE HEADING"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" SECTION OF OUR REPORT OFEVEN DATE

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

ii. The Fixed Assets have been physically verified in a phased manner by the managementand reconciliation of the quantities with the Fixed Assets Register is under process andas such the differences are not ascertained as on that date.

iii. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the Lands admeasuring more or less 8053.54Acres are held by the Company originally in the name of M/s Ramnugger Cane & SugarCompany Limited as per the Order of Government of West Bengal Land and Revenue DepartmentLand Reform Branch vide order No. 4572-L Ref .dated Calcutta 12th March 1964 andthereafter the name of the company was changed to M/S Khaitan Agro complex Limited as perthe certificate of Incorporation issued by the Registrar of the Companies on 1st October1991 . Further M/S Khaitan (India) Limited was amalgamated with M/s Khaitan Agro CpmplexLimited with effect from 1st January 1994 as per the order of Honorable Calcutta HighCourt dated 17th October 1994 and as per the order of the Court the name of the companywas retained as Khaitan (India) Limited . The Registrar of Companies West Bengal issued afresh certificate of Incorporation on 14th November 1994 and change the name of theCompany from Khaitan Agro Complex Limited to M/S Khaitan (India) Limited . Subsequentlythe Government of West Bengal in its Calcutta Gazette published on 17th April 1995 videits notification No.186-CI/C dated 24th March 1995 issued by the Commerce &Industries Department GROUP "C" made the amendments and substitute the wordsand brakets from Khaitan Agro Complex Limited (Sugar Division) to Khaitan (India) Limited.

2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed .

3. The Company has not granted loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the of the Companies Act 2013.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5. The Company has not accepted deposits from the public. The directives issued by theReserve Bank of India and the provisions of Section 73 to 76 of the Act and the rulesframed there under are not applicable

6. The maintenance of cost records has been specified by the Central Government undersection148(1) of the Companies Act 2013. We have broadly reviewed the books of recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules2014asamended prescribed Central Government under subsection of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed accounts and costrecords have been made and maintained. We have however not made detailed examination ofthe records with a view to determine whether they are accurate or complete.

7. i. According to the information and explanations given to us and on the basis of ourexamination of the books and account the company generally has not been regular and thusthere are delays in depositing the Undisputed statutory dues including Provident FundEmployees State Insurance Income Tax Sales Tax Service Tax Excise Duty Cess ValueAdded Tax TDS and other statutory dues if any with the appropriate authorities ;-According to the records the following statutory dues were outstanding as at 31st March2016 for a period of more than six months from the date they became payable:

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 8 WITH THE HEADING"REPORT ON

OTHER LEGAL AND REGULATORY REQUIREMENTS" SECTION OF OUR REPORT OF EVEN DATE (Cont.)

Name of the statute Nature of dues Period to which pertain Amount (Rs. In Lacs) Due date Paid on
Provident Fund and Pension Fund ETC PF of employers & Employees contributions 2016-17 From April to September 2016 1485578/ 15th of succeeding month =
Income Tax Act 1961 Tax deducted at sources 2016-17 From April to September 2016 6949938/ 7th of the succeeding month

=

The Central/State Sales Tax Act Value Added Tax 2016-17 From April to September 2016 1162985/ 20th of succeeding month =
Service Tax 2016-17 From April to September2016 3602324/ 6th of the succeeding month

=

Panchayat Tax 2016-17 53603/ Within 31st March =
Professional Tax 2016-17 From April to September2016 22276/ 21stth of succeeding month

=

ii. According to the information and explanations given to us and the records of thecompany examined by us the dues of Income Tax Sales Tax Service Tax Excise DutyValue added Tax and Cess as at 31st March 2017 which have not been deposited on account ofdispute and the forum where the disputes are pending are as follows :

Name of the Statute Nature of Class Amount Period to which is relating Forum where dispute is pending
Maharastra Sales Tax Act Tax & Penalty on higher turnover on reassessment 9487225 Joint Commissioner & Sales Tax (Appellate) Mumbai.

8 According to the information and explanations given to us by the management thecompany is in no default in repayment of dues to Financial institutions/Banks .

9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and money raised by way of term loans have beenapplied by the Company during the year for the purposes for which they have raised.

10. To the best of our knowledge and belief and according to the information andexplanations given to us. no fraud by the company or no fraud on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

11. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

12. The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 order is not applicable.

13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013whereapplicable for all transactions with the related parties and the details of the relatedparty transactions have been disclosed in the financial statements etc.as required by theapplicable standard .

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of CARO 2016 is not applicable to the Company.

15. In 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 itsdirectors or person connected with him and hence provisions of section 192 of theCompanies Act 2013 are not applicable.

16. The Company is not required to be registered under section 45-I of the Reserve Bankof India 1934.

For O P Sharma and Associates
Chartered Accountants
B-3 8th Floor Saltee Spacio Registration No 500128 N
1 Mall Road CA Om Prakash Sharma
Kolkata-700080 Proprietor
The 12th June 2017 Membership No. 070762

ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 8 WITH THE HEADING"REPORT ON

OTHER LEGAL AND REGULATORY REQUIREMENTS" SECTION OF OUR REPORT OF EVEN DATE (Cont.)

ANNEXURE - B TO THE AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of section 143 of theCompanies Act 2013 ("the Act ")

We have audited the internal financial controls over financial reporting of KhaitanIndia Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial control 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 (‘ICAI') . 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 safe guarding ofits assets the prevention and deduction 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

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 Reportingissued by ICAI and deemed to be prescribed under section 143(10) of the Company's Act 2013 to the extent applicable to an audit of internal financial controls both applicable toan audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India .Those Standards and the Guidance Note require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects .

Our audit involves performing procedure to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their reportingeffectiveness . 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 procedureselected depends on the auditor's judgment including the assessment of the risks ofinternal misstatement of the financial statements whether due to the 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial controls 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 the generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:-

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company.

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the Company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 over ride ofcontrols material misstatements due to error or fraud may occur and not be detected .Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 reportingwere operating effectively as at 31st March 2017 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financialcontrols Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia .

For O P Sharma and Associates
Chartered Accountants
B-3 8th Floor Saltee Spacio Registration No 500128 N
1 Mall Road CA Om Prakash Sharma
Kolkata-700080 Proprietor
The 12th June 2017 Membership No. 070762