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Karnimata Cold Storage Ltd.

BSE: 537784 Sector: Others
NSE: N.A. ISIN Code: INE576P01019
BSE 00:00 | 31 Mar Karnimata Cold Storage Ltd
NSE 05:30 | 01 Jan Karnimata Cold Storage Ltd
OPEN 6.00
PREVIOUS CLOSE 6.00
VOLUME 48000
52-Week high 6.00
52-Week low 0.00
P/E 5.94
Mkt Cap.(Rs cr) 3
Buy Price 5.60
Buy Qty 6000.00
Sell Price 6.65
Sell Qty 6000.00
OPEN 6.00
CLOSE 6.00
VOLUME 48000
52-Week high 6.00
52-Week low 0.00
P/E 5.94
Mkt Cap.(Rs cr) 3
Buy Price 5.60
Buy Qty 6000.00
Sell Price 6.65
Sell Qty 6000.00

Karnimata Cold Storage Ltd. (KARNIMATACOLD) - Auditors Report

Company auditors report

To the Members of

KARNIMATA COLD STORAGE LIMITED CIN: L01403WB2011PLC162131

Opinion

We have audited the accompanying financial statements of Karnimata Cold StorageLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and 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 the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2022 and its profit and its cash flows for the year ended on that date.

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 further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Responsibility of Management for the 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 flow 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 provisions of the Act for safeguarding of assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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.

Those Board of Directors are also responsible for overseeing the company’sfinancial reporting process.

Auditor’s Responsibility 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 misstament whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstament when it exists. Misstaments 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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2020 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act (hereinafterreferred to as the "Order") we give in the Annexure A a statement onthe matters specified in paragraph 3 and 4 of the Order to the extent applicable.

As required by section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

a) 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.

b) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

c) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

d) On the basis of written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of Section164(2) of the Act.

e) 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; and

f) 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 2020 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact itsfinancial position; ii) The Company did not have any long-term contracts includingderivate contracts for which there were any material foreseeable losses; iii) Therewere no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

Annexure referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has regular programme of physicalverification of its property plant and equipment by which all property plant andequipment are verified in a phased manner every year during the last quarter i.e. Januaryto March. In our opinion this periodicity of physical verification is reasonable havingregard to the size of the company and nature of its assets. No material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company all the title deeds of immovable properties areheld in the name of the company.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not revalued its property plant and equipment during the year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the company there are no proceedings initiated or pendingagainst the company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made there under.

ii. a) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable and procedures and coverageas followed by management were appropriate. No discrepancies were noticed on verificationbetween physical stocks and the book records that were 10% or more in the aggregate foreach class of inventory.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not been sanctioned workingcapital limits in excess of five crore rupees from banks on the basis of current assets.In our opinion the quarterly returns or statements filed by the company with such banksare in agreement with the books of accounts of the company.

iii. According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not made any investmentprovided guarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnership or any other parties duringthe year. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties during the year.

iv. According to the information and explanations given to us and on the basis of ourexamination of the records the company has not given any loans or provided any guaranteeor security as specified under section 185 and 186 of the Companies Act 2013. Further thecompany has complied with the provisions of section 186 of the Companies Act 2013 inrelation to loans given and investments made.

v. The Company has not accepted any deposits or amounts which are deemed to be depositsfrom the public.

Accordingly clause 3(v) of the order is not applicable.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the CompaniesAct 2013 for the services provided by it. Accordingly clause 3(vi) of the Order is notapplicable.

vii. (a) The company does not have liability in respect of sales tax service tax dutyof excise and value added tax during the year. Since effective from 1st July2017 these statutory dues have been subsumed into GST. According to the information andexplanations given to us and on the basis of or examination of the records of the companyamounts deducted / accrued in the books of accounts in respect of undisputed statutorydues including GST Provident Fund Employees state insurance income tax duty ofcustoms cess and other material statutory dues have generally been regularly depositedwith the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of GST provident fund ESI income tax duty of customs cess andother material statutory dues were in arrears as at 31 March 2022 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofGST provident fund ESI income tax duty of customs cess and other statutory dues whichhave not been deposited by the company on account of disputes.

viii. According to the information and explanations given to us and on the basis of ourexamination of the records the company the company has not surrendered or disclosed anytransactions previously unrecorded as income in the books of accounts in the taxassessments under the Income Tax Act 1961 as income during the year.

ix. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company did not have any loans orborrowings from any lender during the year. Accordingly clause 3(ix) (a) of the Order isnot applicable.

(b) ) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority.

(c) According to the information and explanations given to us by the management thecompany has not obtained any term loans. Accordingly clause 3(ix) (c) of the Order is notapplicable.

(d) According to the information and explanations given to us and on an overallexamination of the Balance sheet of the company we report that the company has raisedfrom SBI short term loan (OLF) in the last week of March 2022 for the purpose of financingto potato farmers and the same has been used/will be used for this purpose.

(e) According to the information and explanations given to us and procedures performedby us we report that the company does not have any subsidiary as defined under theCompanies Act 2013. Accordingly clause 3(ix) (e) and 3(ix) (f) of the Order is notapplicable.

x. (a) The company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly clause 3(x) (a) of the Order is notapplicable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x) (b) of the Order is not applicable.

xi. (a) Based on examination of the books and records of the company and according tothe information and explanations given to us considering the principle of materialityoutlined in Standards on Auditing we report that no fraud by the company or on thecompany has been noticed or reported during the course of the audit.

(b) Based on examination of the books and records of the company and according to theinformation and explanations given to us we have neither come across any instance offraud on or by the Company by its officers or employees noticed or reported during thecourse of our audit nor have we been informed of any such instance by the Management.Accordingly no report under sub section (12) of section 143 of the Companies Act 2013 hasbeen filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Auditand Auditors) Rules 2014 with the Central Government.

(c) Based on examination of the books and records of the company and according to theinformation and explanations given to us we have not come across any whistle blowercomplaints received by the company during the year.

xii. According to the information and explanations given to us the company is not aNidhi company. Accordingly clause 3(xii) of the Order is not applicable.

xiii. In our opinion and according to the information and explanations given to us thetransactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the Notes to financial statements.

xiv. (a) Based on information and explanations provided to us and our audit proceduresin our opinion the company has an internal audit syatem commensurate with the size andnature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

xv. In our opinion and according to the information and explanations given to us thecompany has not entered into any non cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Companies Act 2013are not applicable to the company.

xvi. (a) The company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934.

Accordingly clause 3(xvi)(a) and 3(xvi)(b) of the Order is not applicable.

(b)The company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) and 3(xvi)(d) of the Orderis not applicable.

xvii. The company has not incurred cash losses in the current and in the immediatelypreceding financial year.

xviii. There has been resignation of the statutory auditors during the year on theground of non renewal of their Firm’s Peer Review and we have taken intoconsideration the same and casual vacancy was filled up in the Board Meeting dated31.03.2022 subject to approval by share holders within three months.

xix. According to the information and explanations given to us and on basis of thefinancial ratios ageing and expected dates of realization of financial assets andpayments of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We further state that our reporting is based on the facts upto the date ofaudit report and we neither give any guarantee or any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

xx. In our opinion and according to the financial statements company is not covered bySection 135(1) of the

Companies Act 2013 regarding Corporate Social Responsibilities (CSR). So this clauseis not applicable to the Company.

Annexure B to the Independent Auditor’s Report

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 KarnimataCold Storage Limited ("the Company") as of March 31 2022 in conjunctionwith our audit 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 and efficientconduct of its business including adherence to company’s policies the safeguardingof its 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

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 Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 judgment 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 controlssystem 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 of records that in reasonable detail accuratelyand fairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial 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 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For R.C.JHAWER & CO.

Chartered Accountants

(FRN: 310068E)

7A Bentinck Street(New Wing)
Kolkata 700 001
R. C. JHAWER
Propreitor
Dated the 20th day of May 2022 M.NO.-017704

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