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Kilburn Chemicals Ltd.

BSE: 524699 Sector: Industrials
NSE: N.A. ISIN Code: INE655C01027
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(-2.76%)
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72.55

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 72.55
PREVIOUS CLOSE 72.50
VOLUME 518
52-Week high 78.70
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 84
Buy Price 70.50
Buy Qty 4.00
Sell Price 73.70
Sell Qty 40.00
OPEN 72.55
CLOSE 72.50
VOLUME 518
52-Week high 78.70
52-Week low 32.00
P/E
Mkt Cap.(Rs cr) 84
Buy Price 70.50
Buy Qty 4.00
Sell Price 73.70
Sell Qty 40.00

Kilburn Chemicals Ltd. (KILBURNCHEMICAL) - Auditors Report

Company auditors report

To

The Members of

Kilburn Chemicals Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Kilburn ChemicalsLimited(''the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the 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

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 preparationand presentation of these financial statements to give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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.

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 and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theAudit Report.

We conducted our audit in accordance with the Standards on Auditing as 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.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 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 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 2017 its profit and its cash flows for the year ended on that date.

Emphasis of Matters

1. Note No. 28 regarding non provision of gratuity liability of Rs. 2304884/-(including for the yearRs. 173076/-).

2. Note No. 30 regarding non provision against Trade Receivables of Rs. 110972664/-in respect of Commodity Transactions and other Receivables of Rs. 10093772/-

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

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 section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure- A a statement on the matters specified in paragraphs 3 and 4 of theOrder. 1. As required by section 143(3) of the Act wereport 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 faras it appears from our examination ofthose books;

c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are inagreement 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 on31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2017 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 B" 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 the financial statements as referred to in Note 27 in the financialstatements.

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

iii. the Company has transferred Rs. 213343/- relating to the Financial Year2008-2009 to the Investor Education and Protection Fund with a delay of10 days.

iv. the Company has provided requisite disclosure in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountmaintained by the Company.

For V. SINGHI & ASSOCIATES

Chartered Accountants

Firm Registration No. 311017E

(SUNIL SINGHI)

Four Mangoe Lane

Partner

Membership No. 060854

Surendra Mohan Ghosh Sarani

Kolkata

Date: 19th May 2017

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph-1 on Other Legal and Regulatory Requirements of our Report ofeven date to the members of Kilburn Chemicals Limitedon theFinancial Statements of theCompany for the yearended 31st March 2017)

i. a) The Company has maintainedproper records showing full particulars includingquantitative details and situation of its Fixed Assets.

b) As explained to us the Fixed Assets have been physically verified by the managementat regular intervals and as informed to us no material discrepancies were noticed on suchverification.

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. According to the information and explanations given to us the inventories havebeen physically verified by the Management during the year at regular intervals and nomaterial discrepancies were noticed on such verification.

iii. According to the information and explanations given to us the Company has notgranted any loan secured or unsecured during the year (excluding outstanding UnsecuredLoan of Rs.24806627/- as on 31.03.2017) to companies firms Limited LiabilityPartnership or other parties covered in the register maintained under Section 189 of theAct.

a) No interest is being charged on the above loan as per terms of the agreement betweenthe parties.

b) There are no schedules as regards to repayments of principal amount and therefore weare not in a position to make any comments as to whether or not the Company was regular inreceipt of principal amount. However the Company has received Rs 194704/- on account ofprincipal during the year.

c) In view of our comments in para (b) above we are not in a position to make anycomments as to whether or not there were any overdue amounts of more than Ninety days andwhether any reasonable steps have been taken by the Company for recovery of the principalamount.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Actin respect ofthe loans and investments made.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year within the meaning of sections 73 to76 of the Act and the rules framed there under to the extent notified.

vi. As per the information and explanations given to us by the management the CentralGovernment has prescribed the maintenance of cost records under section 148(1) of the Actbut since the criteria for minimum turnover is not complied with Clause 3(vi) of theorder is not applicable.

vii. a) As per records of the Company and according to the information and explanationsgiven to us the Company is generally regular in depositing undisputed applicablestatutory dues including Provident Fund Income Tax Sales Tax Custom duty Excise DutyService Tax Value Added Tax Cess and any other statutory dues to the appropriateauthorities and there are no undisputed amount payable in respect of the same which werein arrears as on 31st March

2017 for a period of more than six months from the date the same became payable. b)According to the information and explanations given to us the Company has not depositedthe following dues on account of disputes with the appropriate authorities:

Name of the statue Nature of the dues Amount in Rs. Period to which the amount relate Forum where dispute is pending
Income Tax Act 1961 Income Tax 62555590/- Assessment Year 2012-13 Commisioner of Income Tax (Appeals) Chennai
Income Tax Act 1961 Income Tax 5343330/- Assessment Year 2013-14 Commisioner of Income Tax (Appeals) Chennai
Income Tax Act 1961 Income Tax 1048080/- Assessment Year 2014-15 Commisioner of Income Tax (Appeals) Chennai

viii. According to the information and explanations given to us the Company hasobtainedterm loansunder consortium finance from Bank of Baroda & State Bank of Indiaduring the year. However no installment is due for repayment during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). However term loans raised during the year havebeen applied for the purpose for which the same were raised.

x. During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance offraud on or by the Company noticed or reported during the year nor we have been informedof such case by the management.

xi. In our opinion and according to the information and explanations given to us themanagerial remuneration paid or provided is in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

xii. According to the information and explanations given to us the Company is not aNidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to usand on the basis of ourexamination of the records of the Company we report that all transactions with therelated parties are in compliance with sections 177 and 188 of the Act wherever applicableand the details in respect of such transactions have been disclosed in the FinancialStatements as required under Accounting Standards - 18 Related Party Disclosures specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. During the year under review the Company has madepreferential allotment of1185000 Equity Sharesof Rs. 10 eachin accordance with provisions of Section 42 of theActand the amount raised has been utilized/to be utilized for the purpose for which it wasraised.

xv. According to the information and explanations given to us we report that theCompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly clause 3(xv) of the Order is not applicable.

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

For V. SINGHI & ASSOCIATES

Chartered Accountants

Firm Registration No. 311017E

(SUNIL SINGHI)

Four Mangoe Lane

Partner

Membership No. 060854

Surendra Mohan Ghosh Sarani

Kolkata

Date: 19th May 2017.

Annexure -Bto the Independent Auditor's Report

(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Reportof even date to the members of Kilburn Chemicals Limited on the Financial Statements ofthe Company for the year ended 31st March 2017)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KilburnChemicals Limited (''the Company") as of 31st March 2017 in conjunction with ouraudit of the financial statement 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 V

Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India (‘ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable 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 the ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the GuidanceNote require that we comply with ethical requirements and planand 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 allmaterial 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 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 materialmisstatements 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 controlsover financial reporting were operating effectively as at 31stMarch 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 V. SINGHI & ASSOCIATES

Chartered Accountants

Firm Registration No. 311017E

(SUNIL SINGHI)

Four Mangoe Lane

Partner

Membership No. 060854

Surendra Mohan Ghosh Sarani

Kolkata

Date: 19th May 2017.