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K C P Ltd.

BSE: 590066 Sector: Industrials
NSE: KCP ISIN Code: INE805C01028
BSE 13:50 | 19 Dec 99.45 1.20
(1.22%)
OPEN

99.65

HIGH

101.00

LOW

98.50

NSE 13:39 | 19 Dec 99.40 1.15
(1.17%)
OPEN

98.95

HIGH

101.00

LOW

97.75

OPEN 99.65
PREVIOUS CLOSE 98.25
VOLUME 24899
52-Week high 170.10
52-Week low 80.95
P/E 21.91
Mkt Cap.(Rs cr) 1,282
Buy Price 98.85
Buy Qty 20.00
Sell Price 99.55
Sell Qty 274.00
OPEN 99.65
CLOSE 98.25
VOLUME 24899
52-Week high 170.10
52-Week low 80.95
P/E 21.91
Mkt Cap.(Rs cr) 1,282
Buy Price 98.85
Buy Qty 20.00
Sell Price 99.55
Sell Qty 274.00

K C P Ltd. (KCP) - Auditors Report

Company auditors report

To the members of The KCP Limited Chennai

Report on Standalone Ind-AS Financial Statements:

We have audited the accompanying standalone Ind AS financial statements of The KCPLimited Chennai which comprise the Balance sheet as at 31st March 2018the Statement of Profit and Loss (including other comprehensive income) the Cash Flowsand the statement of changes in equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (herein after referredto as "standalone Ind AS financial statements") .

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 with respect to the preparation of these standalone IndAS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards(Ind AS)prescribed under section 133 of Companies Act 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof 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 adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's 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 Companies Act 2013 the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Companies Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Companies Act 2013.Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone Ind AS financial statements are free from material misstatement.

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 auditor's 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 standalone Ind AS financial statements that givea true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standalone IndAS 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 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 Companies Act 2013 in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thefinancial position of the Company as at 31st March 2018 its financialperformance including other comprehensive income its cash flows and changes in equity forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order2016("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 inthe paragraph 3 and 4 of the Order to the extent applicable.

2) As required by Section 143(3) of the Companies Act we report that: a) we havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b) in our opinionproper books of account as required by law have been kept by the Company so far asit appears from our examination of those books.

c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement andchanges in equity dealt with by this Report are in agreement with the books of account; d)in our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Actread with relevant rules issued there under and other accounting principles generallyaccepted in India; e) on the basis of written representations received from the directorsas on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as adirector in terms of Section 164(2) of the Companies Act; f) with respect to the adequacyof internal financial controls over financial reporting of the company and the operatingeffectiveness of such controls refer to our separate report in "Annexure B"and 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. theCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements - Refer Note 35 to the standalone Ind AS financialstatements; ii. the company has made provision as required under the applicable law oraccounting standards for material foreseeable losses on long term contracts anddid not have derivative contracts – Refer Note 50 to the financial statements; iii.there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company.

For K. S. RAO & Co
Chartered Accountants
Firm Registration No: 003109S
Place: Chennai P. Govardhana Reddy
Partner
Date: 28th May 2018 (ICAI Memb. No. 029193)

ANNEXURE ‘A' TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Paragraph 1 under the heading "Report on otherLegal and Regulatory Requirements" of our report of even date to the members of THEKCP LIMITED CHENNAI for the year ended 31st March 2018.

We report that:

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

b. the Fixed Assets are physically verified by the management according to a phasedprogram designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. Pursuant to the program a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies have been noticedon 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 the immovable property areheld in the name of the company.

(ii) the inventory has been physically verified by the management at reasonableintervals during the year under report and the discrepancies noticed during such physicalverification of inventories as compared to book records have been properly dealt with inthe books of account.

(iii) the company has not granted any loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Therefore the provisions of clause 3(iii)(a) 3(iii)(b) &3(iii)(c) of the said Order are not applicable to the company.

(iv) in our opinion and according to the information and explanations given to us thecompany has not granted any loans guarantees and security in accordance with theprovisions of section 185 of the Companies Act 2013. The company has complied with theprovisions of Section 186 of the Companies Act 2013 in respect of investments made by thecompany.

(v) in our opinion the company has complied with the provisions of section 73 to 76 andother applicable provisions of the Companies Act 2013 and Companies (Acceptance ofDeposits) Rules 2014 with regard to the deposits accepted from the public. According tothe information furnished to us no Order has been passed on the company by the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any Court or anyother Tribunal for non-compliance with the provisions of Sections 73 to 76 of theCompanies Act 2013.

(vi) we have broadly reviewed the books of account and records maintained by thecompany at its cement engineering and electric power generation units pursuant to theRules made by the Central Government for the maintenance of Cost Records under section148(1) of the Companies Act 2013 and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained.

(vii) (a) according to the information and explanations given to us and the basis ofour examination of the records of the company in our opinion the company is regular indepositing with the appropriate authorities the undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Goods and Service TaxService Tax duty of Customs duty of Excise Value added tax Cess and other materialstatutory dues applicable to it; and

according to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Goods and Service TaxService Tax duty of customs duty of Excise value added tax cess and other materialstatutory dues were in arrears as at 31st March 2018 for a period of more than six monthsfrom the date they became payable;

(b) according to the information and explanations given to us there were no amounts ofSales Tax duty of Customs Goods and Service Tax duty of Excise Cess Income TaxService Tax that have been disputed by the company and hence were not remitted to theconcerned authorities at the date of the Balance Sheet under report except

Nature of dues Name of the statute Period Amount (Rs. Lakhs) Paid under protest (Rs. Lakhs) Forum where the dispute is pending
1 Excise duty and related demands Central Excise Act 1944 1996-2015 2027.45 89.20 At various Appellate forums
2 Sales tax and related demands AP Sales Tax Act 1957 1996-2001 and 2011-12 237.77 103.23 AP High Court
3 Sales tax and related demands Tamilnadu Sales Tax Act 2007-08 & 2015-16 8.70 6.87 Addl. Commissioner of Commercial taxes
4 Forest Permit Charges A.P. Forest Produce Rules 1970 2010-15 and 2016-17 301.38 96.06 Hon'ble High Court
5 Royalty MMDR Act1957 1986-87 0.93 0.00 ADMG – Guntur
6 Net Present Value of Safety Zone Area Forest Conservation Act1980 2014-15 17.87 0.00 DFO - Guntur
7 Income Tax Income Tax Act 1961 2010-11 &2012-13 8.03 0.00 CIT (Appeals)
Hon'ble Supreme
8 Electricity Duty AP Electricity Duty Act 1938 July 2003 to May 2013 871.22 522.73
Court of India
9 Contribution to District Mineral foundation MMDR Act 1957 as amended in 2015 12-01-2015 to 09-02-2016 35.87 0.00 AP High Court

(viii) according to the records of the company examined by us and the information andexplanations given to us there were no defaults in repayment of loans or borrowings tobanks during the year under report;

(ix) in our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year;

(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 anyinstances of material fraud by the company or any fraud on the company by its officers oremployees noticed or reported during the year nor we have been informed of any such caseby the management;

(xi) according to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for themanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Companies Act 2013;

(xii) the company is not a chit fund or a nidhi/mutual benefit fund/society and hencethe requirement of clause 3(xii) of the Order is not applicable to the company during theyear under report;

(xiii) according to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards;

(xiv) according to the information and explanations given 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;

(xv) according to the information and explanations given to us and based on ourexaminations of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Therefore theprovision of clause 3(xv) of the Order is not applicable;

(xvi) the Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For K. S. RAO & Co
Chartered Accountants
Firm Registration No: 003109S
Place: Chennai P. Govardhana Reddy
Partner
Date: 28th May 2018
(ICAI Memb. No. 029193)

ANNEXURE - ‘B' TO THE INDEPENDENT AUDITORS' REPORT

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 The KCPLimited ("the Company") as of 31st March 2018 in conjunction with our audit ofthe standaloneInd AS 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 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 safeguarding ofits 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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 31st March 2018 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 K. S. RAO & Co
Chartered Accountants
Firm Registration No: 003109S
Place: Chennai
Date: 28th May 2018 (P.GOVARDHANA REDDY)
Partner
(ICAI Memb. No. 029193)