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KKalpana Industries (India) Ltd.

BSE: 526409 Sector: Industrials
NSE: N.A. ISIN Code: INE301C01028
BSE LIVE 13:25 | 26 Sep 28.40 1.65
(6.17%)
OPEN

26.90

HIGH

28.40

LOW

26.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 26.90
PREVIOUS CLOSE 26.75
VOLUME 34995
52-Week high 54.50
52-Week low 25.05
P/E 13.46
Mkt Cap.(Rs cr) 267
Buy Price 27.25
Buy Qty 50.00
Sell Price 28.50
Sell Qty 100.00
OPEN 26.90
CLOSE 26.75
VOLUME 34995
52-Week high 54.50
52-Week low 25.05
P/E 13.46
Mkt Cap.(Rs cr) 267
Buy Price 27.25
Buy Qty 50.00
Sell Price 28.50
Sell Qty 100.00

KKalpana Industries (India) Ltd. (KKALPANAINDS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

KKALPANA INDUSTRIES (INDIA) LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Kkalpana Industries (India)Ltd ("The Company") which comprise the Balance sheet as at 31st March 2016and the Statement of Profit & Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Management is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("The Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition and financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the accounting standardsspecified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the 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 control 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 materialmisstatements whether due to fraud or error.

Auditor’s 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 andauditing standards and matters which are required to be included in the audit report underthe provisions of the act and the Rules made thereunder.

4. We conducted our audit in accordance with the standards on auditing specified u/s143(10) of the Act. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements free from material mis-statements.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risk 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 financial Statements that give true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and reasonableness of the accountingestimates made by the Company’s Directors as well as evaluating the overallpresentation of the financial statements.

6. 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

7. 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: (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 Statement of Profit & Loss of the profit for the year endedon that date.

(c) In the case of Cash Flow Statement of the cash flows of the company for the yearended on that date.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor’s Report) Order2016 ("theOrder") issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act based on the comments in the auditors report we give in theAnnexure Astatement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

9. As required by Section 143(3) of the Act we report to the extent applicable that :

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and 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 appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received

(c) The Balance Sheet and Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts and with the returns;

(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 on 31stMarch 2016 taken on record by the Board of Director none of the directors aredisqualified as on 31st March 2016 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 other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules2014 in our opinion and to the best of our information and accordingto the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financialpositions in its financial statements in accordance with the generally accepted accountingpractice-also refer Note 26 to the Financial Statements.

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Protection Fund by the company.

FOR B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 30th May 2016 (Membership No. 002941)

Annexure A to the Independent Auditor’s Report- 31st March 2016

(Referred to in our report of even date)

The Annexure referred to in Independent Auditor’s Report to the members of theCompany on the financial statements for the year ended 31st March 2016 we report that:

(i) In respect of its Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular program of verification which in our opinion provides aphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed onverification.

(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) In respect of its Inventory:

The inventory except goods-in-transit has been physically verified by the managementat reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. In respect of inventory lying with third parties these havesubstantially been confirmed by them. The discrepancies noticed on verification betweenthe physical stocks and the book records were not material.

(iii) In respect of Loans taken or granted:

In our opinion and according to information and explanations given to us the Companyhas not granted any loans secured or unsecured to companies firms or other partiescovered in the register maintained under section 189 of Companies Act 2013. Accordinglyparagraph 3(iii) of the Order is not applicable to the Company.

(iv) In respect of Loans to Directors and Investments by Company :

The Company has not granted any loans or provided any guarantees or security to theparties covered under Section 185 of the Act. The Company has complied with the provisionsof Section 186 of the Act in respect of investments made or loans or guarantee or securityprovided to the parties covered under Section 186.

(v) In respect of Deposits :

According to the information and explanation given to us the company has not acceptedany deposit during the year and accordingly the question of complying with section 73 and76 of the Companies Act 2013 does not arise. In respect of unclaimed deposits theCompany has complied with the provisions of sections 74 and 75 or any other relevantprovisions of the Companies Act. According to the information and explanation given to usno Order has been passed by the Company Law Board or the National Company Law Tribunal orthe Reserve Bank of India or any Court or any other Tribunal on the Company.

(vi) In respect of Cost Records :

We have broadly reviewed the Cost Records maintained by the Company pursuant to theCompanies (Cost Records & Audit) Rules 2014 as amended and prescribed by the CentralGovernment under sub section (1) of section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed Cost Records have been made and maintained. Wehave however not made a detailed examination of the Cost records with a view todetermine whether they are accurate or complete.

(vii) In respect of whether the Company is regular in depositing its Statutory dues :

a) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues Provident Fund Income tax sales taxEmployees State Insurance Wealth Tax Service Tax Customs Duty Excise Duty Value AddedTax Cess and other material statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities. As explained to us the Company did nothave any dues on account of employees’ state insurance and duty of excise.

According to the information and explanation given to us no undisputed amounts payablein respect of provident fund income tax sales tax value added tax duty of customsservice tax cess and other material statutory dues were in arrears as at 31st March 2016for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no duties ofIncome Tax Sales Tax Value added Tax service Tax Duty of Customs Duty of Excise whichhave not been deposited with the appropriate authorities on account of any dispute.

(viii)In respect of Loans from Bank/Financial Institution :

According to the information and explanation given to us the Company has not defaultedin repayment of dues to any Financial Institution Bank or to Debenture holders during theyear.

(ix) In respect of moneys raised by way of Initial Public Offer Term Loans :

The Company did not raise money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3(ix)of the Order is not applicable.

(x) In respect of frauds on or by the Company :

To the best of our knowledge and according to the information and explanation given tous no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.

(xi) In respect of Managerial Remuneration as per section 197 (schedule V) :

According to the information and explanations given to us managerial remuneration hasbeen provided in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In respect of Nidhi Company :

In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii)In respect of Transactions with the Related Parties :

According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith Sections 177 and 188 of the act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

(xiv)In respect of Preferential allotment or Private placement of shares :

To the best of our knowledge and according to the information and explanation given tous there was no preferential allotment or Private placement of shares or fully or partlyconvertible Debentures during the year under review.

(xv) In respect of Non-cash transaction with Directors or persons connected with him :

To the best of our knowledge and according to the information and explanation given tous there was no non-cash transaction with any Director or persons connected with himduring the year. Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi)In respect of registration under section 45-IA of the Reserve Bank of India Act1934 :

The Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

FOR B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 30th May 2016 (Membership No. 002941)

Annexure B to the Independent Auditor’s Report- 31st March 2016

(Referred to in our report of even date)

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 KKALPANAINDUSTRIES (INDIA) LTD. ("The Company") as of 31st March 2016 in conjunctionwith our audit of the Standalone financial statements of the Company for the year ended onthat 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 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 safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under Companies Act2013.

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 of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement 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 controlssystem over 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 the maintenance of record that in reasonable detail accurately andfairly reflect the transaction and deposition 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 acquisitionuse or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of 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 hasin all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March2016 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 B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 30th May 2016 (Membership No. 002941)