Independent Auditor's Report
To The Members of
Kabra Extrusiontechnik Ltd
Report on the Financial Statements
We have audited the accompanying Standalone Financial Statements of KabraExtrusiontechnik Limited ("the Company") which comprise the Balance Sheetas at March 31 2017 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of thesefinancial statements that give a true and fair view of thefinancialpositionfinancial performance and cash ows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules issued thereunder fromtime to time. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 adequateinternalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on thesefinancial statements based on ouraudit. 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 whetherthefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in thefinancial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of thefinancialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internalfinancial control relevant to the Company's preparation of thefinancialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Board of Directors as well as evaluating the overall presentation ofthefinancial statements.
We believe that the audit evidence we have obtained is suf cient and appropriate toprovide a basis for our audit opinion on thefinancial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaidfinancial 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 of the state of affairs of the Company as at March31 2017 and its profit and its cash ows 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 inparagraphs 3 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 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 account as required by law have been kept by theCompany so far as appears from our examination of those books;
c. the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d. in our opinion the aforesaidfinancial statements comply with the AccountingStandards referred to in Section 133 of the Act read with relevant rules issuedthereunder from time to time;
e. on the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disquali ed as onMarch 31 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f. with respect to the adequacy of the internalfinancial controls over thefinancialreporting of the Company and the operating effectiveness of such controls refer to ourseparate 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 disclosed the impact of pending litigations on itsfinancialstatements Refer Note 23 to thefinancial 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 to theInvestor Education and Protection Fund by the Company;
iv) The Company has provided requisite disclosures in thefinancial statements as toholding as well as
dealings in Specified Bank Notes during the period from 8 November 2016 to 30December 2016. Based on audit procedures and relying on the management representation wereport that the disclosures are in accordance with books of account maintained by theCompany and as produced to us by the Management Refer Note 37 to thefinancial statements.
For Kirtane & Pandit LLP
Firm Reg. No. 105215W / W100057
Kishor B Phadke
Membership No.: 42296
Mumbai May 16 2017
Annexure-A to the Independent Auditor's Report
The annexure referred to in paragraph 1 in Report on Other Legal and RegulatoryRequirements of the Independent Auditor's Report to the members of the Company onthefinancial statements for the year ended March 31 2017 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets. (b) As explained to us xed assets arephysically veri ed by the Management at reasonable intervals in a phased veri cationprogramme and the discrepancies found in the same are properly dealt with in the books ofaccounts. In our opinion the veri cation programme is reasonable having regard to thesize of the Company and nature of its business.
(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) The inventory has been physically veri ed at reasonable intervals by theManagement and no material discrepancies were noticed on such veri cation.
(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act. Accordingly paragraph 3(iii) of the Order is notapplicable.
(iv) In our opinion and according to the information and explanations given to us theCompany has not given loans made investments or given guarantees which are covered by theprovisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public under Section 73 to 76 or any otherrelevant provisions of the Companies Act and the rules framed there under.
(vi) The Central Government has specified maintenance of cost records under Sub-Section(1) of Section 148 of the Act and we are of the opinion that prima facie such accounts andrecords are made and maintained. We have not however made a detailed examination of therecords 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 Income TaxSales Tax Value Added Tax Duty of Customs Duty of Excise and any other materialstatutory dues have been regularly deposited during the year by the Company withappropriate authorities. As explained to us Employee State Insurance is not applicable tothe Company. According to the information and explanations given to us no undisputedamounts payable in respect of statutory dues were in arrears as at March 31 2017 for aperiod of more than six months from the date they became payable. (b) According to theinformation and explanations given to us the Service Tax dues aggregating to Rs. 36.14lacs have not been deposited on account of dispute as listed below:
|Sr. No ||Name of the statute ||Nature of the dues ||Amount (Rs. in lacs) ||Period for which the amount relates ||Forum where the dispute is pending |
|1 ||Finance Act 1994 ||Service Tax ||36.14 ||Various years from 2006-07 to 2010-11 ||Commissioner Officentral Excise (Appeals) |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to its banks andfinancial institutions.The Company did not have any loan or borrowings from government or any debenturesoutstanding during the year.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.
(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its Officers or employees has been noticed or reported during theyear.
(xi) According to the information and explanations given to us the managerialremuneration is paid or provided in accordance with the requisite approvals mandated bythe 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. Accordingly paragraph 3(xii) of the Order is notapplicable.
(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with sections 177 and 188 of theAct and the details as required by the applicable accounting standards have beendisclosed in thefinancial statements.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partiallyconvertible debentures during the year.
(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe year.
(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.
For Kirtane & Pandit LLP
Firm Registration No. 105215W/W100057
Kishor B Phadke
Membership No. 42296
Mumbai May 16 2017
Annexure-B to the Independent Auditor's Report
The annexure referred to in paragraph 2(f) on Other Legal and Regulatory Requirementsof the Independent Auditor's Report to the members of the Company on thefinancialstatements for the year ended March 31 2017.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act
We have audited the internalfinancial controls overfinancial reporting of KabraExtrusiontechnik Ltd ("the Company") as of March 31 2017 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 maintaininginternalfinancial controls based on the internalfinancial control overfinancial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequateinternalfinancial controls that were operating effectively for ensuring the orderly and efcient conduct 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 reliablefinancialinformation as required under Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controlsoverfinancial reporting based on our audit conducted in accordance with the Guidance Noteon Audit of Internal Financial Controls over Financial Reporting (the "GuidanceNote") and the Standards on Auditing to the extent applicable to an audit ofinternalfinancial controls 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 internalfinancial controls overfinancial reporting was established and maintainedand if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internalfinancial controls overfinancial reporting included obtaining an understandingof internalfinancial controls overfinancial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement ofthefinancial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is suf cient and appropriate toprovide a basis for our audit opinion on the Company's internalfinancial controls systemoverfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internalfinancial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability offinancial reporting and thepreparation offinancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internalfinancial 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 offinancial 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 thefinancial statements.
Inherent Limitations of Internal Financial Control Over Financial Reporting
Because of the inherent limitations of internalfinancial controls overfinancialreporting 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 internalfinancial controls overfinancialreporting to future periods are subject to the risk that the internalfinancial controloverfinancial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternalfinancial controls system overfinancial reporting and such internalfinancialcontrols overfinancial reporting were operating effectively as at March 31 2017 based onthe internal control overfinancial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
For Kirtane & Pandit LLP
Firm Reg. No. 105215W/W100057
Kishor B Phadke
Membership No. 42296
Mumbai May 16 2017