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Kamadgiri Fashion Ltd.

BSE: 514322 Sector: Industrials
NSE: N.A. ISIN Code: INE535C01013
BSE 00:00 | 13 Nov 91.00 -4.00
(-4.21%)
OPEN

91.05

HIGH

98.00

LOW

91.00

NSE 05:30 | 01 Jan Kamadgiri Fashion Ltd
OPEN 91.05
PREVIOUS CLOSE 95.00
VOLUME 310
52-Week high 188.00
52-Week low 78.35
P/E 9.89
Mkt Cap.(Rs cr) 53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 91.05
CLOSE 95.00
VOLUME 310
52-Week high 188.00
52-Week low 78.35
P/E 9.89
Mkt Cap.(Rs cr) 53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kamadgiri Fashion Ltd. (KAMADGIRIFASH) - Auditors Report

Company auditors report

To the Members of Kamadgiri Fashion Limited Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Kamadgiri FashionLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and asummaryofsignificantaccounting policies and other explanatory information (hereinafterreferred to as "Ind AS Financial Statements"). doubt on the

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 (state of affairs)financial position profit or loss (financial comprehensive income) cash flows and changesin equity of the

Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind

AS) specified under Section 133 of the Act read with relevant rules issued thereunder.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 and ensuring their operating effectiveness and the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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 thereunder.

We conducted our audit in accordance 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 anddisclosures in the Ind AS financial statements.

The procedures selected depend on the auditors' judgment including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud or error.

In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast

Company's ability to continue as a significant going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the Ind AS financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern. performance including other Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis 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 including the Ind

AS of the state of affairs (financial position) of the Company as at March 31 2018its profit including other comprehensive income its cash flowsand changes in equity forthe year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 01 2016 included in these IndAS financial statements are based on the previously issued statutory financial statementsprepared in accordance with the Companies

(Accounting Standards) Rules 2006 which were audited by us on which we expressed anunmodified opinion dated May 292017 and May 302016 respectively. The adjustments tothose financial statements for the differences in the accounting principles adopted bythe Company on transition to the Ind AS have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors' 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 "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable. (2) As required by Section143(3) of the Act we report that: a. We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit; b. In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books; c. The BalanceSheet the Statement of Profit

Cash Flow Statement and the Statement of Changes in Equity dealt with by this Reportare in agreement with the books of account; d. In our opinion the aforesaid Ind ASfinancial statements comply with the Indian Accounting Standards specified under Section133 of the Act read with relevant rules issued thereunder; e. On the basis of writtenrepresentations received from the directors as on March 31 2018 and taken on record bythe Board of Directors none of the directors is disqualified as on March 31 2018 frombeing appointed as a director in terms of Section 164 (2) of the Act; f. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls we give our separate Report in"Annexure 2". g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

Loss (i) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements Refer Note 37 on Contingent Liabilities to theInd AS financial statements; (ii) The Company did not have any long-term contractsincluding derivative contracts. Hence the question of any material foreseeable lossesdoes not arise; (iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W /W100048
Sumant Sakhardande
Partner
Membership No. 034828
Place: Mumbai
Date: May 26 2018

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of KamadgiriFashion Limited on the financial statements for the year ended March 31 2018]

(i)

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) During the year the fixed assetsof the Company have been physically verified by the management and as informed nomaterial discrepancies were noticed on such verification. In our opinion the frequency ofverification is reasonable having regard to the size of the Company and the nature of itsassets.

(c) The title deeds of immovable properties recorded as fixed assets in the books ofaccount of the Company are held in the name of the Company.

(ii) The inventory (excluding stocks lying with third parties) has been physicallyverified by the management during the year. In our opinion the frequency of physicalverification is reasonable. In respect of inventory lying with third parties these havesubstantially been confirmed by them. As informed no material discrepancies were noticedon physical verification carried out during the year.

(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability

Partnerships or other parties covered in the register maintained under Section 189 ofthe Act. Accordingly paragraph 3 (iii)(a) 3 (iii)(b) and 3 (iii)(c) of the Order are notapplicable to the Company.

(iv) Based on information and explanation given to us there are no loans investmentguarantees and security where provisions of Section 185 and 186 of the Act are required tobe complied with. Accordingly paragraph 3 (iv) of the Order is not applicable to theCompany. (v) In our opinion and according to the information and explanations given to usthe Company has not accepted any deposits from the public within the provisions ofSections 73 to 76 of the Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof products where the maintenance of cost records has been specified by the

Central Government under sub-section (1) of Section 148 of the Act and the rules framedthere under and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. (vii) (a) The Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax value added taxgoods and service tax customs duty excise duty cess and any other material statutorydues applicable to it AND According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome tax sales tax service tax value added tax goods and service tax customs dutyexcise duty cess and any other material statutory dues applicable to it wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us the dues outstandingwith respect to income tax sales tax service tax value added tax goods and servicetax custom duty excise duty which have not been deposited on account of dispute are asfollows:

Name of the statute Nature of dues Amount Period to which the amount relates Forum where dispute is pending
(Rs in Lakh)
Income Tax Act 1961 Income Tax 122.36 2010-2011 CIT (Appeals)
2011-2012
2012-2013
2013-2014
2014-2015*
Gujarat Sales Tax Act 1969 Sales Tax 31.02 2001-2002 Commissioner (Appeals)
2002-2003
* Assessment Year

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to banks. Further there are no borrowingsfrom financial institution government or dues to debenture holder

(ix) The Company has not raised money by way of public issue offer / further publicoffer during the year. In our opinion and according to the information and explanationsgiven to us the Company has utilized the money raised by way of term loans during theyear for the purposes for which they were raised.

(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 fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) According to the information and explanations given to us managerial remunerationhas been paid / provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act. (xii) In our opinion andaccording to the information and explanations given to us the Company is not a NidhiCompany. Therefore paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanation given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of Act where applicable and the details have been disclosed in the Ind ASFinancial Statements etc. as required by the applicable Indian Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Thereforeparagraph 3(xiv) of the Order is not applicable to the Company.

(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) According to the information and explanation given to us the Company isnot required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W /W100048
Sumant Sakhardande
Partner
Membership No. 034828
Place: Mumbai
Date: May 26 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT [Referred to in paragraph 2 under‘Report on Other Legal and Regulatory Requirements' in the Independent Auditor'sReport of even date to the members of Kamadgiri Fashion Limited on the financialstatements for the year ended March 31 2018]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KamadgiriFashion Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the 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 andefficientconduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the

Company's internal financial controls system over financial reporting.

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 March 31 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 ICAI.

For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W /W100048
Sumant Sakhardande
Partner
Membership No. 034828
Place: Mumbai
Date: May 26 2018