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Kakatiya Textiles Ltd.

BSE: 521054 Sector: Industrials
NSE: N.A. ISIN Code: INE092E01011
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NSE 05:30 | 01 Jan Kakatiya Textiles Ltd
OPEN 3.23
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VOLUME 10
52-Week high 3.58
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Sell Price 0.00
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OPEN 3.23
CLOSE 3.23
VOLUME 10
52-Week high 3.58
52-Week low 2.40
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kakatiya Textiles Ltd. (KAKATIYATEXTILE) - Auditors Report

Company auditors report

To

The Members of

KAKATIYA TEXTILES LIMITED

Report on the Financial Statements:

We have audited the accompanying Ind AS financial statements of KAKATIYA TEXTILESLIMITED. ("the Company") which comprise the Balance sheet as at 31st March2018 the Statement of Profit and Loss (including other comprehensive income) thestatement of Cash Flows and the statement of changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as " Ind AS financial statements").

Management’s Responsibility for the 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (INDAS) prescribed under Section 133 of the Companies Act 2013 read with relevant rulesissued there under and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the company and for preventingand detecting the 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 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 Ind AS financial statements basedon our 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 there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the Ind AS financial statements arefree from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence by us is sufficient and appropriate to provide abasis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date

Other Matters

The transition date opening balance sheet as at April 1 2016 included in these Ind ASfinancial statements is based on the statutory financialstatements prepared in accordancewith the

Companies (Accounting Standards) Rules 2006 audited by the predecessor auditor whosereport for the year ended March 31 2016 dated May 26 2016 expressed an unmodifiedopinion on those financial statements and have been restated to comply with Ind AS.Adjustments made to the previously issued said financial information prepared inaccordance with the Companies

(Accounting Standards) Rules 2006 to comply with Ind AS have been audited by us.

Our opinion on the Ind AS financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of this

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143(11) of theAct we give in the

"Annexure-A" a statement on the matters specified in paragraphs 3 and 4 ofthe .

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 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 Sheetthe Statement of Profit and Loss including Other Comprehensive

Income the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the Indian Accounting

Standards (IND AS) prescribed under Section 133 of the Companies Act 2013 read withrelevant rules issued there under and other accounting principles generally accepted inIndia.

e. On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March

31 2018 from being appointed as a director in terms of Section 164(2) of theCompanies Act 2013.

f. With respect to the adequacy of internal financial control over financial reportingof the

Company and the operating effectiveness of such control refer to our separate reportin "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 does not have any pending litigations which would impact its financial position ason reporting date. ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses. iii. Therewere no amounts which required to be transferred to the Investor Education and ProtectionFund by the Company.

For CHEVUTURI ASSOCIATES
Chartered Accountants
Firm Reg. No.000632S
Sd/-
CA. Srinivasa Rao Cherukuri
Place: Tanuku Partner
Date: 30th May 2018 M. No.209237

Annexure-A to the Independent Auditors’ Report

The Annexure referred to in Paragraph 1 under the heading of "Report on otherLegal and Regulatory Requirements" of our report of even date to the members of KAKATIYATEXTILES LIMITED for the year ended 31st March 2018.We report that: (i). (a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.

(b) According to the information and explanations furnished to us the company hasphysically verified its fixed assets during the period and such intervals which in ouropinion provided for the physical verification of all the Fixed Assets at reasonableinterval having regard to the size of the company and nature of its business. According tothe information and explanation given to us no material discrepancies have been noticedon such verification carried out during the period.

(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). According to the information and explanations furnished to us the company hasphysically verified its inventories at reasonable intervals during the period underreport. In our opinion and according to information and explanation given to us thediscrepancies if any noticed on verification of inventories between the physical stocksand the book records were not material and have been properly dealt with in the books ofaccount.

(iii). According to the information and explanations furnished to us the company hasnot granted or other parties covered in register anyloanssecured orunsecured tocompanies firms maintained under Section 189 of the Companies Act 2013. Consequentlyparagraph 3 iii (a) (b) and (c) of the order are not applicable to the Company.

(iv). According to the information and explanations furnished to us the company hasnot given any loan made any investment given any guarantee or provided any securitycovered under section 185 and 186 of the Companies Act 2013. Hence reporting under clause(iv) of the Order is not applicable.

(v). According to the information and explanations given to us the company has notaccepted any deposits covered under the provisions of section 73 to 76 or any otherrelevant provisions of the Act. Further according to the information furnished to us noorder has been passed on the company by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliancewith the provisions of Sections 73 to 76 of the Companies Act 2013.

(vi). We have broadly reviewed the books of account and records maintained by thecompany pursuant to the rules made by the Central Government for the maintenance of CostRecords under the section 148 of the Companies Act2013 and we are of the opinion thatprima facie the prescribed accounts and records have been made and maintained

(vii). (a) According to the information and explanations furnished to us and accordingto the books and records produced for our examination in our opinion the company isregular in depositing with the appropriate authorities the undisputed statutory duesincluding Provident Fund Employees’ State insurance Income Tax Sales Tax ServiceTax Goods and Service tax Custom Duty Excise duty Value added tax Cess and othermaterial statutory dues wherever applicable to it and further there are no undisputedstatutory dues that were outstanding as at the date of the Balance Sheet for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations furnished to us and according to therecords of the company the company has no disputed dues on account of Provident FundEmployees’ State insurance Income Tax Sales Tax Service Tax Goods and Servicetax Custom Duty Excise duty Value added tax Cess and other material statutory duespending remittance as at March 31 2018.

(viii). According to the information and explanations given to us there were nodefaults in repayment of dues to financial institutions banks government or debentureholders at the date of balance sheet.

(ix). According to the information and explanations given to us the company has notraised money by way of initial public offer or further public offer (including debtinstrument) and the term loans from Banks and Financial Institutions have been applied forthe purposes for which they were obtained.

(x). According to the information and explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(xi). According to the information and explanations furnished to us the company hasnot paid or provided managerial remuneration during the period. Hence reportingrequirement in terms of Clauses (xi) does not arise during the period under report.

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

(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 applicableIndian accounting standards.

(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.

(xv). According to the information and explanations furnished to us the company hasnot entered in to any non-cash transactions with directors or persons connected with him.Hence provisions of Section 192 of the Companies Act 2013are not applicable.

(xvi). According to the information and explanations furnished to us the company isnot required to be registered under the section 45-IA of the Reserve Bank of India Act1934

For CHEVUTURI ASSOCIATES
Chartered Accountants
Firm Reg. No.000632S
Sd/-
CA. Srinivasa Rao Cherukuri
Place: Tanuku Partner
Date: 30th May 2018 M. No.209237

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 KAKATIYATEXTILES LIMITED ("the Company") as of 31 March 2018 in conjunction with ouraudit of the Ind 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 controloverfinancialreporting 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 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material 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 over financial 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 judgment 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 sufficientand 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 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of un authorised 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 31 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 CHEVUTURI ASSOCIATES
Chartered Accountants
Firm Reg. No.000632S
Sd/-
CA. Srinivasa Rao Cherukuri
Place: Tanuku Partner
Date: 30th May 2018 M. No.209237