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Kanchi Karpooram Ltd.

BSE: 538896 Sector: Industrials
NSE: N.A. ISIN Code: INE081G01019
BSE 00:00 | 14 Dec 523.70 -7.05
(-1.33%)
OPEN

531.00

HIGH

534.55

LOW

515.00

NSE 05:30 | 01 Jan Kanchi Karpooram Ltd
OPEN 531.00
PREVIOUS CLOSE 530.75
VOLUME 3071
52-Week high 665.00
52-Week low 152.00
P/E 8.15
Mkt Cap.(Rs cr) 217
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 531.00
CLOSE 530.75
VOLUME 3071
52-Week high 665.00
52-Week low 152.00
P/E 8.15
Mkt Cap.(Rs cr) 217
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kanchi Karpooram Ltd. (KANCHIKARPOORAM) - Auditors Report

Company auditors report

FOR THE YEAR ENDED 31ST MARCH 2018

TO

THE MEMBERS OF

KANCHI KARPOORAM LIMITED

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS financial statements of KanchiKarpooramLimited ("the Company") which comprises the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss(including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ("the Act") with respect to the preparation ofthe seInd 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 accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act and the Rules made thereunder.

3. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the 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 the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

4. Our responsibility is to express an opinion on the seInd AS financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder. We conducted our audit of the Ind AS financial statements in accordance withthe Standards on Auditing as specified under Section143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and there asonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the afore said 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 the IndAS and accounting principles generally accepted in India of the state of affairs of theCompany as at 31stMarch 2018and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

Other Matters

8. The comparative financial information of the Company for the year ended 31stMarch2017 and the transition date opening balance sheet as at 1stApril 2016 included in theseInd AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies(Accounting Standards) Rules 2006audited by another firm of Chartered Accountants and their reports for the year ended31stMarch 2017 and31stMarch 2016 dated 29th May 2017 and 30thMay 2016 respectivelyexpressing an unmodified opinion on those financial statements and have been restated tocomply with Ind AS. Adjustments made to the previously issued said statutory financialinformation or the differences in the accounting principles adopted by the Company ontransition to the Ind AS have been audited by us. Our opinion is not modified in respectof these matters.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order2016 ("the Order")and issued by the CentralGovernmentof India in terms of sub-section 11 of Section 143ofthe Act we give in the Annexure A a statement on thematters specified in paragraphs 3and 4 of the saidOrder to the extent applicable.

10. As required by Section 143(3) of the Act we report that:

(a) we have sought and obtained all the information andexplanations which to the bestof our knowledge

andbelief were necessary for the purposes of our audit;

(b) in our opinion proper books of account as requiredby law have been kept by theCompany so far as itappears from our examination of those books;

(c) the Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the CashFlow Statement and Statement of Changes in Equity dealt with by thisreport are in agreement with thebooks of account;

(d) in our opinion the aforesaid IndASfinancial statements comply with the IndianAccountingStandards prescribed under Section 133 of the Act and the Rules made thereunder;

(e) on the basis of written representations received fromthe Directors as on 31stMarch2018 and taken onrecord by the Board of Directors none of the Directorsis disqualifiedas on 31stMarch 2018 from beingappointed as a Director in terms of Section 164 (2)of theAct;

(f) with respect to the adequacy of the internal financialcontrols with reference tofinancial statements and the operating effectiveness of such controls refer toourseparate report in Annexure B; and

(g) with respect to the other matters to be included inthe Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinionand to the best of our information andaccording to explanations given to us:

i. the Company has no pendinglitigations as at 31st March 2018 and accordinglydisclosing the impact of pending litigations on its financial position in itsfinancialstatements does not arise.

ii. the Company did not have any longterm contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. there was no delay in transferring the required amount to the InvestorEducationand Protection Fund by the Company during the year.

For P. CHANDRASEKAR LLP
CHARTERED ACCOUNTANTS
(Firm Regn. No.000580S/S200066)
Place : Chennai S. SRIRAM
Partner
Date : 16th May 2018 Membership No. 205496

Annexure A to Independent Auditors' Report – 31st March 2018

(Referred to in our report of even date)

I.

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us these fixed assets have been physically verified by theManagement at regular intervals; as informed to us no material discrepancies were noticedon such verification.

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

ii. The Management has conducted physical verification of inventory at reasonableintervals and as per the information made available to us no material discrepancies werenoticed on such verification.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not provided any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013.

iv. According to the information and explanations provided to us the Company does nothave any loans investments guarantees and security which are subject to the provisionsof Section 185 and 186 of the Companies Act 2013. Therefore provisions of Para 4(iv) ofthe Companies (Auditor's Report) Order 2016 are not applicable to the Company.

v. The Company has not accepted any deposits from public.

vi. On the basis of the records produced to us we are of the opinion that primafacie the cost records prescribed by the Central Government under sub-section (1) ofSection 148 of the Companies Act 2013 have been maintained. However we have not carriedout any detailed examination of such records.

vii. According to the information and explanations given to us in respect of statutorydues:

a) the Company has generally been regular in depositing with the appropriateauthorities the undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Service Tax Sales Tax Customs Duty Excise Duty and Cess thoughthere has been a slight delay in a few cases. To the best of our knowledge and accordingto the information and explanations given to us there were no arrears of outstandingstatutory dues as at 31st March 2018 for a period of more than six months from the datethey become payable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there were no dues of Income Tax or Sales Taxor Customs Duty or Excise Duty or Value Added Tax or Goods and Services Tax as at 31stMarch 2018 which have not been deposited on account of any dispute.

viii. On the basis of verification of records and according to the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto a financial institution bank Government or dues to debenture holders.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised monies by way of initial public offer or further public offer(including debt instruments) during the year. The term loans availed were applied for thepurposes for which they were raised.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given tous by the Management no fraud by the Company and no fraud on the Company by its officersor employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to usmanagerial remuneration paid or provided has been in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company and hence compliance with the provisions of theNidhi Rules is not applicable.

xiii. In our opinion and according to the information and explanations given to us alltransactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him which will come under the purview of Section 192of the Companies Act 2013.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

Place : Chennai For P.CHANDRASEKAR LLP
Date : 16th May 2018 CHARTERED ACCOUNTANTS
(Firm Regn. No.000580S/S200066)
S.SRIRAM
Partner
Membership No. 205496

Annexure - B to the Independent Auditors' Report - 31st March 2018

(Referred to in our report of even date)

Report on the Internal Financial Controls under clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (" the Act")

1. We have audited the internal financial controls with reference to the financialstatements of Kanchi Karpooram Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 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 Companies Act 2013.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements werein place and if such controls were operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. 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 financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

6. A company's internal financial controls with reference to financial statements aredesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controls withreference to financial statements includes those policies and procedures that a) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

c) 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 financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls with reference to financial statements and such internal financialcontrols were operating effectively as at 31st March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

Place : Chennai For P.CHANDRASEKAR LLP
Date : 16th May 2018 CHARTERED ACCOUNTANTS
(Firm Regn. No.000580S/S200066)
S.SRIRAM
Partner
Membership No. 205496