You are here » Home » Companies » Company Overview » KDDL Ltd

KDDL Ltd.

BSE: 532054 Sector: Others
NSE: KDDL ISIN Code: INE291D01011
BSE 16:01 | 18 Jun 532.35 25.35
(5.00%)
OPEN

529.00

HIGH

532.35

LOW

528.50

NSE 15:40 | 18 Jun 535.50 25.50
(5.00%)
OPEN

529.90

HIGH

535.50

LOW

529.90

OPEN 529.00
PREVIOUS CLOSE 507.00
VOLUME 673
52-Week high 621.00
52-Week low 176.00
P/E 41.04
Mkt Cap.(Rs cr) 577
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 529.00
CLOSE 507.00
VOLUME 673
52-Week high 621.00
52-Week low 176.00
P/E 41.04
Mkt Cap.(Rs cr) 577
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KDDL Ltd. (KDDL) - Auditors Report

Company auditors report

To

The Members of

KDDL Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of KDDL Limited('the Company') which comprise the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 of thesestandalone 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 prescribedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended). 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 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. Further to our comments in Annexure I 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 purpose 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 financial statements dealt with by this report are in agreement withthe books of account;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards prescribed underSection 133 ofthe Act read with Rule7oftheCompanies(Accounts) Rules 2014(asamended);

e. on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none ofthe directors is disqualified as on 31 March 2017from being appointed as a director in terms of Section 164(2) ofthe Act;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) ofthe Company as on 31 March 2017 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date and our report dated30 May 2017 as per Annexure II expresses unqualified opinion;

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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company as detailed in Note 32 (c) to 32 (f) to the standalone financialstatements has disclosed the impact of pending litigations on itsfinancial position;

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; and

iv. the company as detailed in Note 45 to the standalone financial statements hasmade requisite disclosures in these standalone financial statements as to holdings as wellas dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016. Based on the audit procedures performed and taking into consideration theinformation and explanations given to us in our opinion these are in accordance with thebooks of account maintained by the company.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Lalit Kumar

Partner

Membership No.: 095256

Place: Chandigarh

Date: 30 May 2017

Annexure I to the Independent Auditor's Report of even date to the members of KDDLLimited on the standalone financial statements for the year ended 31 March 2017

Annexure I

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(I) (a) The Company has maintained proper records showing full particulars includingquantitative details

and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assetsunder which fixed assets are verified in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties (which are included under the head'fixed assets') are held in the name of the Company except for the following piece of landsituated at Parwanoo which was transferred to the Company as a result of amalgamation ofHimachal Fine Blanks Limited erstwhile wholly owned subsidiary of the company.

Nature of property Total Number ofCases Whether leasehold /freehold Gross block as on 31 March 2017 (Rs.) Net block on 31 March 2016 (Rs.) Remarks
Land 1 Freehold 566913 566913 The management is completing formalities for transferring the title deeds.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year except for goods-in-transit and stocks lying withthird parties. For stocks lying with third parties at the year-end written confirmationshave been obtained by the management. No material discrepancies were noticed on theaforesaid verification.

(iii) The Company has granted secured loan to a company covered in the registermaintained under Section 189 of the Act; and with respect to the same:

(a) in our opinion the terms and conditions of grant of such loans are not primafacie prejudicial to the company's interest.

(b) the schedule of repayment of principal and payment of interest has been stipulatedin the contract. The repayment of the principal amount and payment of interest did notfall due during the year covered by our audit.

(c) there is no overdue amount in respect of loans granted to such company.

(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) In our opinion the Company has complied with the directives issued by the ReserveBank of India the provisions of Sections 73 to 76 and other relevant provisions of theAct and the Companies (Acceptance of Deposits) Rules 2014 (as amended) as applicablewith regard to the deposits accepted. According to the information and explanations givento us no order has been passed by the Company Law Board or National Company LawTribunalor Reserve Bank of India or any Court or any other Tribunal in this regard.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-

tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable have generally been regularly deposited to theappropriate authorities though there has been a slight delay in a few cases. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Statement of Disputed Dues

Name of statute Nature of dues Amount (Rs) Amount paid under protest (Rs.) Period to which the amount relates Forum where dispute is pending
Finance Act 1994 Service tax 3230574 - June 2009 September 2013 Commissioner (Appeals)
Finance Act 1994 Service tax 623422 October 2013 August 2014 Commissioner (Appeals)
Finance Act 1994 Service tax 491593 - September 2014 June 2015 Commissioner (Appeals)
Finance Act 1994 Service tax 448946 - July 2015 June 2016 Commissioner (Appeals)
Income tax Act 1961 Income tax 4046108 4046108 FY 2003-04 Income Tax Appellate Tribunal New-Delhi
Income tax Act 1961 Income tax 13203431 FY 2004-05 Income Tax Appellate Tribunal New-Delhi
Income tax Act 1961 Income tax 10625400 9815807 FY 2005-06 Income Tax Appellate Tribunal New-Delhi
Income tax Act 1961 Income tax 1964000 1964000 FY 2010-11 Commissioner of Income-tax (Appeals) New- Delhi
Income tax Act 1961 Income tax 6948302 - FY 2011-12 Commissioner of Income-tax (Appeals) New- Delhi

# amounts as per demand order including interest and penalty whichever indicated inthe order

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) In our opinion the Company has applied moneys raised by way of the term loans forthe purposes for which these were raised. The Company did not raise moneys by way ofinitial public offer/ further public offer (including debt instruments) during the year.

(x) No fraud by the Company or on the company by its officers or employees has beennoticed or reported during the period covered byouraudit.

(xi) Managerial remuneration has been paid and provided by the company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the company has made private placement of shares. In respect ofthe same in our opinion the company has complied with the requirement of Section 42 ofthe Act and the Rules framed thereunder. Further in our opinion the amounts so raisedhave been used for the purposes for which the funds were raised. During the year thecompany did not make preferential allotment of shares/ fully or partly convertibledebentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

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

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Lalit Kumar

Partner

Membership No.: 095256

Place: Chandigarh

Date : 30 May 2017

Annexure II to the Independent Auditor's Report of even date to the members of KDDLLimited on the financial statements for the year ended 31 March 2017

Annexure II

Independent Auditor's report on the Internal Financial Controls under Clause (I) ofSub-section 3 of Section 143 of the Companies Act 2013 (the 'Act')

1. In conjunction with our audit of the financial statements of KDDL Limited (the'Company') as of and for the year ended 31 March 2017 we have audited the internalfinancial controls over financial reporting (IFCoFR) of the Company of as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the IFCoFR criteria established by the Companyconsidering the essential components of internal financial controls stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting (the 'GuidanceNote') issued 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 the Company's 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 ofreliablefinancial information as required underthe Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing ('Standards')issued by the ICAI and deemed to be prescribed under section 143(10) of the Act to theextent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating 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 financial statements whether dueto 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 IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sIFCoFR 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

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls overflnancial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the IFCoFRcriteria established by the Company considering the essential components of internalfinancial controls stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP

(formerly Walker Chandiok & Co)

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Lalit Kumar

Partner

Membership No.: 095256

Place: Chandigarh

Date: 30 May 2017.