You are here » Home » Companies » Company Overview » Kanani Industries Ltd

Kanani Industries Ltd.

BSE: 506184 Sector: Consumer
NSE: KANANIIND ISIN Code: INE879E01037
BSE 00:00 | 17 Sep 8.82 0.42
(5.00%)
OPEN

8.40

HIGH

8.82

LOW

8.40

NSE 00:00 | 17 Sep 8.85 -0.15
(-1.67%)
OPEN

9.30

HIGH

9.30

LOW

8.65

OPEN 8.40
PREVIOUS CLOSE 8.40
VOLUME 35
52-Week high 14.55
52-Week low 2.90
P/E 220.50
Mkt Cap.(Rs cr) 87
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.40
CLOSE 8.40
VOLUME 35
52-Week high 14.55
52-Week low 2.90
P/E 220.50
Mkt Cap.(Rs cr) 87
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

1. Opinion

We have audited the standalone financial statements of Kanani Industries Limited whichcomprise the balance sheet as at 31st March 2020 the statement of Profit and Lossstatement of changes in equity and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in "/'conformity with theaccounting principles generally accepted in India including Indian Accounting Standards(Ind AS) specified in Section 133 of the Act of the state of affairs of the Company as atMarch 312020 its profit cash flows and the changes in equity for the year ended on thatdate.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

No provision for gratuity amount not ascertainable in absence of acturial valuation bya certified valuer has been made by the compay.

Impact of Covid19 pandemic

The attention is drawn to Note No. 22.13 to the Notes to accounts which specificallydescribes the uncertainties and the impact of the Covid19 pandemic on the operationsgoint concern status and recoverability of the assets of the company. The management hasassessed the impact of the lockdown and related restrictions imposed by the governmentalauthorities to control pandemic and came to the conclusion that there is no materialimpact on the company's financial and operational health.

Our procedures included but were not limited to the following:

Impact of Covid19 pandemic

(a) Assessed the impact of lockdown and resultant closure of operations on thefinancials of the company;

(b) Assessed the recoverability of the debtors inventory investments and other assetsand the ability of the company to repay its liabilities;

(c) Assessed the reasonableness of the assumptions made by the management regardingassessing the situation post-Covid19 pandemic.

4. 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 standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany'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.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

5. Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors' report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

a. Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

d. Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

e. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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

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

8. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matters orwhen 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 of such communication.

9. Other Matters

Our attendance at the time of physical inventory taken by the management was notpracticable under the lockdown conditions and accordingly we have relied upon the reportof the internal auditors and have performed alternative procedures to audit on theexistence and condition of inventory at year end as per the guidance provided in"SA-501 - Audit Evidence - Specific considerations for selected items" and haveobtained sufficient audit envidence to issue our unmodified opinion on these consolidatedfinancial results.

10. Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

11. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 Standalone Balance Sheet the Statement of Profit and Loss and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.

(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 received from the directors as on 31 stMarch2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting 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 its financialposition in its financial 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 tothe Investor Education and Protection Fund by the Company.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Proprietor
Place: Mumbai M. No. 44141
Date: July 30 2020 ICAI Firm Regi. No. 102239W
UDIN : 20044141AAAABI2010

ANNEXURE "A" TO THE AUDITOR'S REPORT

(Referred to in para 2 of our report on even 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 312020.

i. a. The Company has maintained proper records of fixed assets showing fullparticulars including quantitative details and situation of fixed assets.

b. As explained to us the fixed assets have been physically verified by the mangementduring the year in accordance with a regular programme for verification which in ouropinion is reasonable having regard to the size of the company and nature of its assets.No material discrepancies were noticed on such physical verification.

c. The title deeds of immovable properties are held in the name of the company.

ii. a. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

b. The inventories have been physically verified by the management during the year on amonthly basis. In our opinion the frequency of such verification is reasonable. Howeverdue to lockdown announced by the Government of India on account of Covid19 the managementcould not take physical verification of its stock after 20.03.2020. The company hasverified the stock on 08.06.2020 which reflects no deviation.

c. In our opinion and according to the information and explanation given to us thecompany is maintaining proper records of inventory. The discrepancies noticed onverification between physical stocks and book records were not material and have beenproperly dealt with in the books of accounts.

iii. The Company has not granted any loans secured or unsecured to any companiesfirms Limited Liability partnerships or other parties covered in the register maintainedunder section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) ofthe Order are not applicable to the Company and hence not commented upon.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit in contravention of section 73 to section 76 or anyother relevent provision of the Companies Act 2013 and Companies (Acceptance of Deposits)Rules 2014. As informed to us no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any other Court or tribunal.

vi. Having regard to the nature of the business of the company and as per theinformation and explaination given to us in our opinion the rules regarding maintainanceof cost records under section 148(1) of the companies Act 2013 are not applicable to thecompany.

vii. a. The company is regular in depositing undisputed statutory dues includingprovident fund investor education and protection fund employees' state insurance fundincome tax sales tax value addes tax Goods and Service Tax wealth tax custom dutyexcise duty cess and other material statutory dues with appropriate authorities whereverapplicable to it.

b. In our opinion and in accordance with the information and explaination given to usthe following 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 ( Rs )
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 arenot applicable to the Company 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: July 30 2020 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 with reference to the aforesaid standalonefinancial statements under Clause (i) of Sub-section 3 of Section 143 of the CompaniesAct 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of KANANI INDUSTRIES LIMITED. ("the Company") as of March 31 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to standalone financial statements and such internalfinancial controls were operating effectively as at March 312020 based on "theinternal financial control with reference to standalone financial statements 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" (the "Guidancenote").

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial control with reference to standalonefinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013 (hereinafter referred to as "the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls with reference to standalone financial statements.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were established andmaintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the standalone financial statementswhether 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 systemwith reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financialstatements

A company's internal financial control with reference to 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 control with reference to 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 arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 standalonefinancial statements

Because of the inherent limitations of internal financial controls with reference tostandalone 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 standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For Deepak Mehta & Associates
Chartered Accountants
(DEEPAK MEHTA)
Proprietor
Place: Mumbai M. No. 44141
Date: July 30 2020 ICAI Firm Regi. No. 102239W

.