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Kirloskar Industries Ltd.

BSE: 500243 Sector: Others
NSE: KIRLOSIND ISIN Code: INE250A01039
BSE LIVE 15:40 | 16 Nov 1388.15 -29.90
(-2.11%)
OPEN

1418.05

HIGH

1418.05

LOW

1365.00

NSE 15:31 | 17 Nov 1390.25 -5.25
(-0.38%)
OPEN

1464.95

HIGH

1464.95

LOW

1381.95

OPEN 1418.05
PREVIOUS CLOSE 1418.05
VOLUME 197
52-Week high 1671.00
52-Week low 737.00
P/E 27.47
Mkt Cap.(Rs cr) 1,348
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1418.05
CLOSE 1418.05
VOLUME 197
52-Week high 1671.00
52-Week low 737.00
P/E 27.47
Mkt Cap.(Rs cr) 1,348
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kirloskar Industries Ltd. (KIRLOSIND) - Auditors Report

Company auditors report

Independent Auditors' Report To

The Members of Kirloskar Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of KirloskarIndustries Limited ("the Company") which comprise the Balance Sheet as at March312017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 Section 134(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 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 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 Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers 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 the 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 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 mannerso required and give a true and fairview in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 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 Sub-Section (11) of Section 143 ofthe Act we give in the Annexure-A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. As required by Section 143(3)oftheAct we report 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 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 in 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 March312017 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) ofthe Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refertoourseparate Report in "Annexure B".

(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 included the disclosure of the impact of pending litigations on itsfinancial position in its Financial Statements under Note 24 Contingent Liabilities.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor 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 31Disclosure on Specified Bank Notes (SBNs).

For G. D. APTE & CO.
Chartered Accountants
Firm Registration Number: 100515W
Sd 1-
U.S.ABHYANKAR
Partner
Pune: 11 May 2017 Membership Number: 113053

Annexure-A referred to in paragraph 1 under the heading 'Report on Other Legal and

Regulatory Requirements' of our report on even date:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and

situation offixed assets.

(b) The Company has a regular programme of physical verification of its fixed assetsaccording to which fixed assets are verified in a phased manner over a period of threeyears. In accordance with this programme certain fixed assets were verified during theyear and no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets.

(c) The title deeds of immovable properties are held in the name of the Company.

ii. Considering the nature of the inventories of the Company [Renewable EnergyCertificates (RECs)] the provisions of paragraph 3(ii) of the Order are not applicable tothe Company.

iii. Based on the audit procedures conducted by us and according to the information andexplanations given to us in our opinion no loans secured or unsecured have been grantedto companies firms limited liability partnerships or other parties covered in theRegister maintained under Section 189 of the Act.

iv. Based on the audit procedures conducted by us and according to the information andexplanations given to us in our opinion the Company has not given any loans guaranteesor securities to any of its Directors or to any other persons in whom the Director isinterested under Section 185.The Company has complied with the provisions of Section 186of the Act with respect to the investments made.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public as per the provisions of the Act.

vi. The Company is not required to maintain cost records as per Rule 3 of the Companies(Cost Records and Audit) Rules 2014.

vii. (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including

Provident fund Income-tax Value added tax Service tax Cess and other materialstatutory dues applicable to it. According to the information and explanations given to usand from the records of the Company there were no undisputed statutory dues as at thelast day of the financial year which were outstanding for a period of more than six monthsfrom the date they became payable. We have been explained that dues in respect ofEmployees State Insurance Custom duty Excise duty and Sales tax were not applicableduring the year.

(b) According to the information and explanations given to us and from the examinationof books of account and records of the Company there are no dues in respect of Incometax Sales tax Service tax Custom duty Excise duty Value added tax or Cess which havenot been deposited on account of any dispute except for following cases:

Name of the statute Nature of dues Amount (T in Lakhs) Years to which the amount relates Forum where dispute is pending
Finance Act 1994 (Service Tax) Denial of service tax credit taken and penalty thereon 0.52 2006-07 CESTAT-Mumbai
Income Tax Act 1961 Disallowance of certain expenses 235.82 (Out of this f 150.00 lakhs paid under protest) 2013-14 Commissioner of Income Tax (Appeals)

viii. The Company has not availed any loan from any financial institution bankgovernment or debenture holders. As such the reporting under this paragraph regardingdefault of the Company in repayment of dues to financial institution bank government ordebenture holders is not required.

ix. During the year the Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) and term loans.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and as per the information and explanations given bythe management we report that no fraud by the Company or any fraud on the Company by itsofficers or employees has been noticed or reported during the year.

xi. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and as per the information and explanations given tous we report that the managerial remuneration has been paid and provided in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act.

xii. According to the explanations given to us the Company is not a Nidhi Companywithin the meaning of Section 406 of the Act.

xiii. Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the Financial Statements and as per the information and explanationsgiven to us we report that the transactions with the related parties are in compliancewith Sections 177 and 188 of the Act where applicable and the details as required by theapplicable accounting standards have been disclosed in the Financial Statements.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

xv. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and as per the information and explanations given tous we report that the Company has not entered into any non-cash transactions of thenature as described in Section 192 (1) of the Act.

xvi. Based upon the audit procedures performed by us and as per the information andexplanations given to us we report that the Company is not required to be registeredunder Section 45-IAof the Reserve Bank of India Act 1934.

For G. D. APTE & CO.
Chartered Accountants
Firm Registration Number: 100515W
Sd 1-
U.S.ABHYANKAR
Partner
Pune: 11 May 2017 Membership Number: 113053

Annexure-B referred to in paragraph 2 (f) under the heading 'Report on Other Legal andRegulatory Requirements' of our report on even date on the Internal Financial Controlsunder Clause (i) of Sub-Section 3 of Section 143 of the Companies Act 2013 ("theAct")

To The Members of Kirloskar Industries Limited

We have audited the internal financial controls overfinancial reporting of KirloskarIndustries Limited ("the Company") as of March 312017 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 overfinancial 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 assets theprevention 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 overfinancial 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 as specified under Section143 (10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls 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 overfinancial 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 systemoverfinancial 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 overfinancialreporting 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 oftheCompany'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 orfraud 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 controlsoverfinancial reporting were operating effectively as at March 312017 based on theinternal control overfinancial 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 ICAI.

ForG. D.APTE&CO.
Chartered Accountants
Firm Registration Number: 100515W
Sd /-
U.S.ABHYANKAR
Partner
Pune: 11 May 2017 Membership Number: 113053