The Members of Kilpest India Limited
Report on the Standalone Financial Statements
We have audited the accompanying (Standalone) financial statements of Kilpest IndiaLimited (the company1) which comprise the Balance Sheet as at March 312017the Statement of Profit and Loss Cash Flow Statement for the year then ended and asummary 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 oftheAct.
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 financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions oftheAct and the Rules made there under section 143(ll)oftheAct.
We conducted our audit of the standalone financial statements in accordance with foeStandards on Auditing specified under Section 143(10) oftheAct. Those Standards requirethat we comply with ethical requirements and plan and perform foe audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about foe amounts andfoe disclosures in foe financial statements. The procedures selected depend on foeauditor's judgment including foe assessment of foe risks of material misstatement of foefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to foe Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingfoe appropriateness of the accounting policies used and foe reasonableness of foeaccounting estimates made by the Company's Board of Directors as well as evaluating theoverall presentation of the standalone financial statements.
We believe that foe audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on foe standalone financial statements.
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 foe Companyas at March 312017 and its Profit and its Cash Flow 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")as amended issued by die Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2) Asrequiredby section 143 (3) oftheAct we reportthat:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge belief were necessary for the purpose of our audit
b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as 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 in agreement with the books of accounts.
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 oftheCompanies( Accounts) Rules 2014..
e. On the basis of written representations received from the directors as on March312017 taken on record by the Board of Directors none ofthe directors is disqualified ason March 312017 from being appointed as a director in terms of Section 164 (2) ofthe Act
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". g. With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 ofthe Companies (AuditandAuditors)Rules2014 in our opinion and to the best of our information and according tothe 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. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. The company has provided requisite disclosures in its financial statements as toholding as well dealings in specified Bank Notes during the period from 8th November 2016to 30th December 2016 and these are in accordance with the books of accounts maintainedby the company.
Chartered Accountants Firm's registrationNo:403034C
Membership No :400993
"Annexnre A" to the Independent Auditors' Report
Referred to in paragraph 1 under toe heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to toe financial statements of the Company for toeyear ended March 312017:
1) Special of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on toe basis of available information.
(b) The Fixed Assets have been physically verified by the management at reasonableintervals. In our opinion toe frequency of verification is reasonable having regard to toesize of toe company and nature of toe assets. To toe best of our knowledge no materialdiscrepancies have been noticed on such verification.
(c) The title deeds of immovable properties are held in the name of toe company.
2) (a) The inventory of finished goods and raw and packing materials and store andspare parts has been physically verified during the year by the management In our opinionthe frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedure for toe physical verification of inventories followed by toe management arereasonable and adequate in relation to toe size of the company and the nature of itsbusiness. To toe best of our knowledge no material discrepancies have been noticed onsuch verification.
(c) In our opinion and according to toe information and explanation given to us toeCompany is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and toe books records were not material and samehave been properly dealt within the books of accounts.
3) In respect of the loans secured or unsecured granted by toe Company to companiesfirms Limited Liability Partnership or other parties covered in the register maintainedunder section 189 of the companies Act2013 .Company has given interest free unsecuredadvance payable on demand to one company and also has given advance to its subsidiarycompany.
a) In our opinion and according to the information given to us the terms andconditions of the loans given by toe company are prima facie not prejudicial to theinterest of the company.
b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and/or receipts of interest have been regular as perstipulations.
c) There are no overdue amounts as at toe year-end in respect ofboth principal andinterest.
4) The Company has given Corporate Guarantee infavor of bankers for loans provided toits subsidiary.
5) The Company has not accepted any deposits from the public and hence toe directivesissued by toe Reserve Bank of India and toe provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and toe Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
6) In our opinion and according to toe information and explanations given to ns toecentral Government has not prescribed the maintenance of cost records under section 148(1)of the Companies Act2013.
7) According to information and explanations given to us and on the basis of ourexamination of the books of account and records toe Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with toe appropriate authorities applicableto it.
8) In our opinion and according to the information and explanations given to us toeCompany has not defaulted in the repayment of dues to banks financial Institutions andGovernment.
9) In our opinion and according to toe information and explanations given to us by themanagement toe company has not raised moneys by way of initial public offer or furtherpublic offer. Monies raised by debt instruments and term Loans during the year have beenapplied by toe Company for toe purpose for which they were raised.
10) In our opinion and according to toe information and explanation given to us thatno fraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.
11) In our opinion and according to die information and explanation given to us dieCompany 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. Therefore the provisions of clause (xii) ofthe Order of Paragraph 3 of the order is not applicable to the Company.
13) In our opinion and according to the explanation given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013 andthe details ofrelated party transactions have been disclosed in the Financial Statementsas required by the applicable accounting standards.
14) During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) ofParagraph 3 of the Order is notapplicable to the Company.
13) In our opinion and according to the information and explanation given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provisions of clause 3 (xv) of the Order is not applicable tothe Company.
16) In our opinion and according to the information and explanation provided to usCompany is not required to be registered under section 45 IAof the Reserve Bank oflndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order is not applicableto the Company.
For R.C. BAHETI & CO.
Chartered Accountants Finn's registrationNo: 403034C
Membership No: 400993
Place: Bhopal Date: 29-05-2017
"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of Kilpest India Limited
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 KilpestIndia Limited ("the Company") as of March 312017 in conjunction with our auditof the standalone 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 (theGuidance note) issued by the Institute of Chartered Accountants of India". 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 die accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 judgment 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion and best of the information and according to the explanations given tous 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 2017 based on internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.
For R.C. BAHETI & CO.
Chartered Accountants' Fiim's registration No: 403034C
Membership No: 400993