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Kanani Industries Ltd.

BSE: 506184 Sector: Consumer
NSE: KANANIIND ISIN Code: INE879E01037
BSE 00:00 | 10 Oct 6.65 0
(0.00%)
OPEN

6.75

HIGH

6.75

LOW

5.65

NSE 00:00 | 15 Oct 5.80 0
(0.00%)
OPEN

6.20

HIGH

6.20

LOW

5.65

OPEN 6.75
PREVIOUS CLOSE 6.65
VOLUME 508
52-Week high 12.95
52-Week low 5.38
P/E 110.83
Mkt Cap.(Rs cr) 66
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.75
CLOSE 6.65
VOLUME 508
52-Week high 12.95
52-Week low 5.38
P/E 110.83
Mkt Cap.(Rs cr) 66
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kanani Industries Ltd. (KANANIIND) - Auditors Report

Company auditors report

To the Members

Kanani Industries Limited

Mumbai

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Kanani IndustriesLimited which comprise of the Balance Sheet as at March 31 2018 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

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 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets of the Company and for preventing anddetecting the frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act and the rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitue of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the accompanying financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India: (i) in the case of the balance sheetof the state of affairs of the Company as at March 31 2018; (ii) in the case of thestatement of profit and loss of the profit for the year ended on that date;

(iii) in the case of the cash flow statement of the cash flows for the year ended onthat date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies'(Auditors' Report) Order 2016 ("the order")as ammended issued by the Central Government of India in terms of sub -Section (11) 0fSection 143 of the Companies Act 2013 (here-in-after referred to as the order) and on thebasis of such checks of the books and records of the company as we considered appropriateand according to the information and explanations given to us we give in the "AnnexureA" a statement on the matters specified in Paragraph 3 & 4 of the order.

2. As required by section 143(3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. in our opinion proper books ofaccount as required by law the have been kept by the Company so far as appears from ourexamination of those books; c. The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount; d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; e. On the basis of the written representations receivedfrom the directors as on March 31 2018 taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2018 from being appointed as a director interms of Section 164 (2) of the Act. f. With respect to the adequacy of the internalfinancial controls over financial reporting of the company and the operating effectivenessof such controls refer to our separate Report in "Annexure B". g. Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us : i. The Company does nothave any pending litigations which would impact its financial position. ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses. iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Companyduring the year ended March 31 2018.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Proprietor
Place: Mumbai M. No. 44141
Date: May 30 2018 ICAI Firm Regi. No. 102239W

ANNEXURE "A" TO THE AUDITOR'S REPORT (Referred to in para 2 of our report oneven date)

To the Members

Kanani Industries Limited

Mumbai

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 31 2018: i. a. The Company has maintained proper recordsof fixed assets showing full particulars including quantitative details and situation offixed assets. b. As explained to us the fixed assets have been physically verified by themangement during the year in accordance with a regular programme for verification whichin our opinion is reasonable having regard to the size of the company and nature of itsassets. No material discrepancies were noticed on such physical verification. c. The titledeeds of immovable properties are held in the name of the company. ii. The management hasconducted physical verification of inventory at reasonable intervals during the year andno material discrepancies were noticed on such physical verification. iii. The company hasnot granted any loans secured or unsecured to any companies firms Limited Liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. As such sub-clause (a) and (c) are not applicable. iv. In our opinion and accordingto the information and explanations given to us the company has complied with theprovisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security. v. In our opinion and according to the informationand explanations given to us the Company has not accepted any deposit in contravention ofsection 73 to section 76 or any other relevent provision of the Companies Act 2013 andCompanies (Acceptance of Deposits) Rules 2014. As informed to us no order has beenpassed by Company Law Board or National Company Law Tribunal or Reserve Bank of India orany other Court or tribunal. vi. We have broadly reviewd the books of account maintainedby the Company pursuant to the Rule made by the Central Government for maintenance of costrecords under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we arenot required to carry out and have not carried out a detailed examination of the recordswith a view to determine whether they are accurate or complete. vii. a. The company isregular in depositing undisputed statutory dues including provident fund investoreducation and protection fund employees' state insurance fund income tax sales taxvalue addes tax Goods and Service Tax wealth tax custom duty excise duty cess andother material statutory dues with appropriate authorities wherever applicable to it. b.In our opinion and in accordance with the information and explaination given to us thefollowing demands were not deposited on account of dispute:

Name of Statute Nature of Dues Period to which the amount relates Forum where disputes is pending Amount ( )
Income Tax Act 1961 Income Tax A Y 2014-15 CIT (Appeals) 2090/-
Income Tax Act 1961 Income Tax A Y 2013-14 CIT (Appeals) 68100/-

viii. In our opinion and according to the information and explanations given to us theCompany is not defaulted in repayment of loans / borrowings to banks government.

ix. In our opinion the company has not raised any funds from public offer (includingdebt instruments) or by term loan.

x. In our opinion on the basis of audit conducted by us and in accordance with theinformation and explanations given to us no fraud on or by the company has been noticedor reported during the course of our audit.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with him.

Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) ofthe Order are not applicable to the company and hence not commented upon.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Proprietor
Place: Mumbai M. No. 44141
Date: May 30 2018 ICAI Firm Regi. No. 102239W

"Annexure B" to the Independent Auditor's Report

(Referred to in our report of even date)

To the Members

Kanani Industries Limited

Mumbai

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 KANANIINDUSTRIES LIMITED. ("the Company") as of March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 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.

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 systemover 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"the internal control over financial 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 Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Proprietor
Place: Mumbai M. No. 44141
Date: May 30 2018 ICAI Firm Regi. No. 102239W