You are here » Home » Companies » Company Overview » Kalyani Investment Company Ltd

Kalyani Investment Company Ltd.

BSE: 533302 Sector: Financials
NSE: KICL ISIN Code: INE029L01018
BSE 00:00 | 05 Aug 1524.00 6.05
(0.40%)
OPEN

1518.00

HIGH

1524.00

LOW

1517.00

NSE 00:00 | 05 Aug 1520.90
(%)
OPEN

1511.90

HIGH

1530.00

LOW

1511.90

OPEN 1518.00
PREVIOUS CLOSE 1517.95
VOLUME 89
52-Week high 2436.05
52-Week low 1415.00
P/E 25.57
Mkt Cap.(Rs cr) 666
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1518.00
CLOSE 1517.95
VOLUME 89
52-Week high 2436.05
52-Week low 1415.00
P/E 25.57
Mkt Cap.(Rs cr) 666
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kalyani Investment Company Ltd. (KICL) - Auditors Report

Company auditors report

To

The Members of

Kalyani Investment Company Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Kalyani Investment CompanyLimited ("the Company") which comprise the Balance Sheet as at March 31 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to theStandalone Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the StandaloneFinancial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 its profit and othercomprehensive income its changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the Standalone Financial Statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

a) Valuation of investments

At the balance sheet date the value of investments amounted to Rs.44986.41 Millionrepresenting 98.75% of the total assets. Investments have been considered as key auditmatter due to the size of the balance various recognition principles subsequentmeasurement principles and disclosure requirements. Refer Note 1A(m) to the StandaloneFinancial Statements for its accounting policy.

Principle Audit Procedures

i) We have understood and evaluated the process of the management to identifyimpairment indicators (if any) for the Company's investments.

ii) For quoted investments we have independently verified the fair values.

iii) We have evaluated the fair value of unquoted investments adopted by the managementand assessed the parameters of the fair valuation reports obtained by the management fromexternal experts.

iv) On a test check basis we have verified appropriate evidence with regard toassertions of existence and rights to the investments.

v) We have verified principles for recognition subsequent measurement and disclosuresas specified in the accounting policy adopted by the Company based on the Ind AccountingStandards.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Management Discussion and Analysis Board of Directors' Reportalong with its Annexures and Corporate Governance Report included in the Annual Report butdoes not include the Standalone Financial Statements and our auditor's report thereon. Ouropinion on the Standalone Financial Statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.

We also :

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 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 Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the Directors as on March31 2021 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2021 from being appointed as a Director in terms of Section 164 (2) of theAct.

f) With respect to the adequacy of the internal financial controls with reference tothe Standalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure "B".

g) As required by Section 197 (16) of the Act; in our opinion and according toinformation and explanation provided to us the remuneration paid/provided by the Companyto its Directors is in accordance with the provisions of Section 197 of the Act andremuneration paid/provided to Directors is not in excess of the limit laid down under thisSection.

h) 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) According to the information and explanation provided to us the Company did nothave any pending litigations that would have an impact on its financial position.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

For P G Bhagwat LLP
Chartered Accountants
Firm's Registration No.101118W/W100682
Abhijeet Bhagwat
Partner
Membership No.136835
UDIN : 21136835AAAABI6714
Place : Pune
Date : May 18 2021

Annexure "A" to the Independent Auditor's Report

Referred to in paragraph 1 under the heading "Report on Other legal andRegulatory Requirements" of our report on even date :

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

(b) According to the information and explanations provided to us the fixed assets ofthe Company are being physically verified by the Management every year. In our opinionthe frequency of verification is reasonable. The fixed assets have been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

(c) The Company does not have any immovable properties.

(ii) Being an investment Company it does not have any physical inventory. AccordinglyClauses (ii) a b and c are of the Order are not applicable to the Company.

(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 Act. Accordingly Clause (iii) a b and c of the Order are notapplicable to the Company.

(iv) According to information and explanation provided to us the Company does not haveany transactions covered under the provisions of Section 185 of the Act. According toinformation and explanation provided to us Section 186 of the Act is not applicable tothe Company being an investment Company.

(v) According to information and explanation provided to us the Company has notaccepted deposits hence the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under are not applicable to it. According to information and explanationprovided to us no order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other tribunal.

(vi) According to information and explanation provided to us being an investmentCompany maintenance of cost records under sub-section (l) of Section 148 of the Act isnot applicable.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax duty of customs goodsand service tax cess and any other statutory dues with the appropriate authorities.

According to the information and explanation provided to us no undisputed amountspayable in respect of statutory dues were in arrears as at March 31 2021 for a periodmore than six month from the date they became payable.

(b) According to the information and explanation provided to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxgoods and service tax or cess which have not been deposited because of any dispute.

(viii) Based on our audit procedures and according to the information and explanationprovided to us the Company has not defaulted in repayment of dues to a financialinstitution bank or government. The Company does not have any debenture holders.

(ix) According to information and explanation provided to us the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) during the current year. The Company has not availed term loans in thecurrent year.

(x) Based upon the audit procedures performed by us and according to the informationand explanations provided to us no fraud by the Company or any fraud on the Company byits officers or employees has been noticed or reported to us during the year.

(xi) According to information and explanations provided to us managerial remunerationto the Directors has been paid/provided in accordance with the requisite approvalsmandated under the provisions of Section 197 of the Act read with Schedule V.

(xii) The Company is not a Nidhi Company and accordingly Clause (xii) of the Order isnot applicable to the Company.

(xiii) According to the information and explanation provided to us all transactionswith the related parties are in compliance with Section 188 and 177 of Act whereverapplicable and the details of transactions have been disclosed in the Financial Statementsas required by Ind AS 24 'Related Party Disclosures'. Refer Note 27 to the FinancialStatements.

(xiv) According to the information and explanation provided to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the current year.

(xv) According to the information and explanation provided to us the Company has notentered into any non-cash transactions with Directors or persons connected with him.

(xvi) According to the information and explanation provided to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For P G Bhagwat LLP
Chartered Accountants
Firm's Registration No.101118W/W100682
Abhijeet Bhagwat
Partner
Membership No.136835
UDIN : 21136835AAAABI6714
Place : Pune
Date : May 18 2021

Annexure "B"to the Independent Auditor's Report

Referred to in paragraph 2 (f) under the heading "Report on Other legal andRegulatory Requirements" of our report on even date :

Report on the Internal Financial Controls with reference to Standalone FinancialStatements under Clause (i) of sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to the StandaloneFinancial Statements of Kalyani Investment Company Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the Standalone Financial Statements of theCompany 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated 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 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 Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the Standards onAuditing to the extent applicable to an audit of internal financial controls both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to the Standalone Financial Statements andtheir operating effectiveness. Our audit of internal financial controls with reference tothe Standalone Financial Statements included obtaining an understanding of internalfinancial controls with reference to the Standalone Financial Statements assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal controls based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the Standalone 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 controls withreference to the Standalone Financial Statements.

Meaning of Internal Financial controls with reference to the Standalone FinancialStatements

A Company's internal financial controls with reference to the Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A Company's internalfinancial controls with reference to the Standalone Financial Statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company are beingmade only in accordance with authorizations of management and Directors of the Company;and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to the StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tothe Standalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to the Standalone Financial Statements to future periods aresubject to the risk that the internal financial controls with reference to the StandaloneFinancial Statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to the Standalone Financial Statements and such internal financialcontrols with reference to the Standalone Financial Statements were operating effectivelyas at March 31 2021 based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For P G Bhagwat LLP
Chartered Accountants
Firm's Registration No.101118W/W100682
Abhijeet Bhagwat
Partner
Membership No.136835
UDIN : 21136835AAAABI6714
Place : Pune
Date : May 18 2021

.