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Kiri Industries Ltd.

BSE: 532967 Sector: Industrials
NSE: KIRIINDUS ISIN Code: INE415I01015
BSE LIVE 15:59 | 21 Sep 420.25 -7.10
(-1.66%)
OPEN

430.00

HIGH

436.90

LOW

406.70

NSE 15:52 | 21 Sep 421.50 -6.45
(-1.51%)
OPEN

430.00

HIGH

437.00

LOW

405.05

OPEN 430.00
PREVIOUS CLOSE 427.35
VOLUME 129214
52-Week high 451.00
52-Week low 227.05
P/E 11.43
Mkt Cap.(Rs cr) 1,170
Buy Price 420.50
Buy Qty 219.00
Sell Price 0.00
Sell Qty 0.00
OPEN 430.00
CLOSE 427.35
VOLUME 129214
52-Week high 451.00
52-Week low 227.05
P/E 11.43
Mkt Cap.(Rs cr) 1,170
Buy Price 420.50
Buy Qty 219.00
Sell Price 0.00
Sell Qty 0.00

Kiri Industries Ltd. (KIRIINDUS) - Auditors Report

Company auditors report

To

The Members of Kiri Industries Limited

Report on the Standalone financial statements

We have audited the accompanying standalone financial statements of Kiri IndustriesLimited ("the Company") which comprises the Balance Sheet as at March 31 2016the Statement 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 Standalone financial statements

Management is responsible for the matters in section 134(5) of the Companies Act 2013("the Act") with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material 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 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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor’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 theCompany’s preparation of the standalone financial statements that give true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall 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 standalone 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: (a) in the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2016; (b) in the case of the Profit and LossAccount of the profit for the year ended on that date; and (c) in the case of the CashFlow Statement of the 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 in terms of sub-section (11) of section 143of the Act we give in the Annexure a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable

2. As required by section 143(3) of the Act we report that: a. we have obtained allthe information and explanations which to the best of our knowledge and belief werenecessary for the purpose of our audit; b. in our opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books; c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account; d. in our opinionthe Balance Sheet Statement of Profit and Loss and Cash Flow Statement 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 written representations received fromthe directors as on March 31 2016 and taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2016 from being appointed as a director interms of section 164(2) of the Act. f. with respect to the adequacy of the internalfinancial controls over financial reporting of the company and the operating effectivenessof such controls refer to our separate report in "Annexure – A". Ourreport expresses an unmodified opinion on the adequacy and operating effectiveness of theCompany’s internal financial controls over financial reporting. g. With respect tothe other matters to be included in the Auditor’s Report in accordance with Rule 11of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its financial statement;ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts; iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company

For V.D. Shukla &Co.
Chartered Accountants
Firm Registration No.: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 30 2016 Membership No.: 036416

ANNEXURE TO AUDIT REPORT:

The Annexure referred to in our Audit Report of even date to the members of KiriIndustries Limited on the accounts of the company for the year ended March 31 2016.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

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

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) As explained to us all the title deeds of immovable properties are held in thename of the company except an agricultural land intended for industrial purpose held inthe name of the chairman of the company in his fiduciary capacity as per section 88 of theIndian Trust Act 1882 pending necessary approval for conversion of agriculture land intonon agriculture land.

2. (a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.

3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Consequently the provisions of clauses ii (a)iii (b) and iii (c) of the order are not applicable to the Company.

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 Companies Act2013.

5. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the company has not accepted any deposit u/s 73to 76 or any other relevant provisions of the Companies Act 2013.

6. We have broadly reviewed the books of accounts maintained by the company pursuant tothe notification by the central government for maintenance of cost records undersub-section 1 of section 148 of the Companies Act 2013 and on the basis of informationreceived we are of the opinion that prima-facie the prescribed accounts and records havebeen made and maintained as per the requirement. We have however not carried out adetailed examination or audit of the cost records with a view to determine whether theyare accurate or complete.

7. (a) According to the records of the company it is observed that there was somedelay in payment of some of the undisputed statutory dues including Provident FundInvestor Education and Protection Fund Employees’ State Insurance Income Tax SalesTax Wealth Tax Service Tax Custom Duty Excise Duty Cess to the extent applicable withappropriate authorities which were subsequently paid in full.

(b) The disputed statutory dues that have not been deposited on account of disputedmatters pending before appropriate authorities are as under.

Sr. No Name of the Statute Name of the Dues Section under which dispute is pending Period to which amount relates (FY) Amount (Rs. In Lakhs) Forum where the dispute is pending
1 The Income Income Tax

143(3)

2002-03

36.99

Income Tax Appellate Tribunal
Tax Act 1961
271(1)(c) 2002-03 139.02 Commissioner of Income Tax
(Appeals)
143(3) 2005-06 58.59 Income Tax Appellate Tribunal
271(1)(c) 2005-06 53.67 Income Tax Appellate Tribunal
143(3) 2007-08 8.53 Income Tax Appellate Tribunal
143(3) 2008-09 21.18 Income Tax Appellate Tribunal
143(3) 2009-10 19.89 Commissioner of Income Tax
(Appeals)
143(3) 2010-11 316.06 Commissioner of Income Tax
(Appeals)
2 The Central Excise Act 1944 CENVAT Refund 2009-10 341.08 High court
2009-10 83.74 Central Excise and Service Tax
Appellate Tribunal

2010-11

255.23

Central Excise Commissioner
Appeal
2010-11 153.73 High Court
Similar Goods 2010-11 344.00 Central Excise Commissioner Appeal
2011-12 4.09 Central Excise Commissioner Appeal
Differential Duties 2011-12 21.40 Central Excise Commissioner Appeal
Outward 2013-14 2.17 Custom Excise and Service
Transportation of Finished Goods Tax Appellant Tribunal Ahmedabad

8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto any bank and debenture holder. The company has not borrowed from financial institutionor government during the year.

9. According to the information and explanation given to us the Company has not raisedmoney through initial public offer nor taken any term loan during the year. Hence thequestion of application of funds for the purpose for which these were borrowed does notarise.

10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

11. During the year under review the company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

12. Based on the audit procedures performed and the information and explanations givento us the company is not Nidhi Company therefore it is not required to follow NidhiRule 2014.

13. Based on the audit procedures performed and the information and explanations givento us the transactions with related party are in compliance with sections 177 and 188 ofthe Companies Act 2013.

14. According to the information and explanation given to us during the year theCompany has made preferential allotment to Kiri Employees Stock Options Trust foremployees and to a relative of a director by way of conversion of Share Warrants intoequity shares for which the requirements of section 42 of the Companies Act 2013 and SEBIguidelines have been complied with and the amount raised have been used for the purposesfor which the funds were raised.

15. According to the information and explanation given to us the Company has notentered in to non-cash transaction with directors or person connected with them during theyear.

16. According to the information and explanation given to us the Company is notrequired to be registered under section 45-IA of Reserve Bank of India Act 1934.

For V.D. Shukla &Co.
Chartered Accountants
Firm Registration No.: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 30 2016 Membership No.: 036416

ANNEXURE A

To the Independent Auditor's Report of even date on the Standalone Financial Statementsof Kiri Industries Limited

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

We have audited the internal financial controls over financial reporting of KiriIndustries Ltd. ("the Company") as of March 31 2016 in conjunction with ouraudit 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 Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea 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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 V.D. Shukla &Co.
Chartered Accountants
Firm Registration No.: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 30 2016 Membership No.: 036416