You are here » Home » Companies » Company Overview » Nilkamal Ltd

Nilkamal Ltd.

BSE: 523385 Sector: Industrials
NSE: NILKAMAL ISIN Code: INE310A01015
BSE LIVE 19:47 | 19 Oct 1627.20 -37.10
(-2.23%)
OPEN

1673.40

HIGH

1673.40

LOW

1615.25

NSE 19:40 | 19 Oct 1635.85 -18.30
(-1.11%)
OPEN

1655.00

HIGH

1667.00

LOW

1618.00

OPEN 1673.40
PREVIOUS CLOSE 1664.30
VOLUME 5291
52-Week high 2274.85
52-Week low 1215.00
P/E 22.24
Mkt Cap.(Rs cr) 2,428
Buy Price 0.00
Buy Qty 0.00
Sell Price 1627.20
Sell Qty 452.00
OPEN 1673.40
CLOSE 1664.30
VOLUME 5291
52-Week high 2274.85
52-Week low 1215.00
P/E 22.24
Mkt Cap.(Rs cr) 2,428
Buy Price 0.00
Buy Qty 0.00
Sell Price 1627.20
Sell Qty 452.00

Nilkamal Ltd. (NILKAMAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF NILKAMAL LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of NilkamalLimited ("the Company") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofCash Flows the Statement of Changes in Equity for the year then ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with relevant rules issued thereunder.

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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the Standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including IND AS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure A a statement on the matters specified in the paragraphs 3 and 4 ofthe Order to the extent applicable.

As required by Section 143 (3) of the Act 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 (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act read withrelevant rules issued thereunder;

(e) On the basis of the written representations received from the Directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 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 the Annexure B; and

(g) With respect to the other matters to be included in the Auditors' 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:

1. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements.

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

3. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31st March2017; and

4. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016. Based on the audit procedures performed andrelying on management representations we report that the disclosures made by the Companyare in accordance with the books of accounts maintained by the Company - Refer Note 45 tothe standalone Ind AS financial statements.

For B S R & Co. LLP For Vora & Associates
Chartered Accountants Chartered Accountants
Firm's Registration No: 101248W/W-100022 Firm's Registration No: 111612W
Sadashiv Shetty Bharat B. Chovatia
Partner Partner
Membership No: 048648 Membership No.: 031756
Mumbai Mumbai
May 11 2017 May 11 2017

Annexure A to the Independent Auditors' Report - 31st March 2017

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone Ind AS financial statements for the year ended31st March 2017 we report the following:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich the fixed assets are verified by the management according to a phased programmedesigned to cover all the items over a period of three years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the programme the Company hasphysically verified certain fixed assets during the year and we are informed that nomaterial discrepancies were noticed on such verification.

(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 asdisclosed in Note 1 to the standalone Ind AS financial statements are held in the name ofthe Company other than those disclosed in the table below:

Asset class No of cases Gross Block (Rs in Lakhs) Net block (Rs in Lalhs) Remarks
Freehold land 1 0.68 0.68 Pending completion of the relevant formalities of some of the fixed assets which vested in the Company pursuant to the scheme of amalgamation such assets continue to be in the name of the erstwhile amalgamated companies
Buildings 29 262.39 251.88

(ii) The inventory except for goods in transit and stocks lying with third partieshas been physically verified by the management at reasonable intervals during the year. Inour opinion the frequency of such verification is reasonable. In respect of stocks lyingwith third parties at the year-end written confirmations have been obtained. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been adequately dealt with in books of account.

(iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013 ('the Act'). Accordingly paragraphs 3 (iii) (a) and (b) ofthe Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us theCompany has not granted any loans or made any investments or provided any guarantees orsecurity to the parties covered under Section 185 of the Act. The Company has compliedwith the provisions of Section 186 of the Act in respect of the investments made by theCompany.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed thereunder. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Income-tax Sales-tax Service tax Duty of Customs Duty of Excise Valueadded tax cess and other material statutory dues have been generally regularly depositedduring the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income-tax Sales-taxService tax Duty of Customs Duty of Excise Value added tax cess and other materialstatutory dues were in arrears as at 31st March 2017 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome-tax Sales tax Service tax Duty of Customs Duty of Excise and Value added tax asat 31st March 2017 which have not been deposited with the appropriate authorities onaccount of any dispute except as stated below:

Name of the statute Nature of dues Amount * (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
Central Sales Tax Act and Local Central Sales Tax and Local Sales - 2001-2002 to 2004-2005 Supreme Court
Sales Tax of various states Tax (including Value Added Tax) 35.22 2008-2009 High Court
667.71 2012-13 High Court
110.17 2013-14 High Court
813.10 2005-2006 20072008 2009 to 2016 Commissioner - Appeals
Central Excise Excise Duty 22.95 2002-2007 Customs Excise & Service tax
Act 1944 206.78 November 2011 to May 2012 Appellate tribunal ("CESTAT") Customs Excise & Service tax Appellate tribunal ("CESTAT")
26.60 March 2007 to June 2015 Customs Excise & Service tax Appellate tribunal ("CESTAT")
10.80 June 2010 to February 2011 Customs Excise & Service tax Appellate tribunal ("CESTAT")
150.29 June 2009 to September 2014 Commissioner -Appeals
10.17 2008-2013 Commissioner -Appeals
21.36 October 2014 to March 2015 Commissioner -Appeals
26.37 April 2015 to December 2015 Commissioner -Appeals
Finance Act 1994 Service Tax 0.81 2007 to 2012 Commissioner -Appeals
Income Tax Act 1961 Tax deducted at source 3.39 2010-11 CIT (Appeals)

* Amount is net of payments made under dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings to banks. The Companydoes not have any loans or borrowings from financial institutions or government or dues todebenture holders during the year.

(ix) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3(ix) of the Order is notapplicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usthe Company has entered into transactions with related parties in compliance with theprovisions of Sections 177 and 188 of the Act where applicable and the details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired by Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act read with relevant rules.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP For Vora & Associates
Chartered Accountants Chartered Accountants
Firm's Registration No: 101248W/W-100022 Firm's Registration No: 111612W
Sadashiv Shetty Bharat B. Chovatia
Partner Partner
Membership No: 048648 Membership No.: 031756
Mumbai Mumbai
May 11 2017 May 11 2017