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KEI Industries Ltd.

BSE: 517569 Sector: Engineering
NSE: KEI ISIN Code: INE878B01027
BSE 00:00 | 19 Oct 269.90 -8.70
(-3.12%)
OPEN

276.10

HIGH

279.00

LOW

263.90

NSE 00:00 | 19 Oct 266.65 -11.05
(-3.98%)
OPEN

279.00

HIGH

279.35

LOW

263.25

OPEN 276.10
PREVIOUS CLOSE 278.60
VOLUME 17646
52-Week high 494.80
52-Week low 255.00
P/E 14.27
Mkt Cap.(Rs cr) 2,131
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 276.10
CLOSE 278.60
VOLUME 17646
52-Week high 494.80
52-Week low 255.00
P/E 14.27
Mkt Cap.(Rs cr) 2,131
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KEI Industries Ltd. (KEI) - Auditors Report

Company auditors report

TO THE MEMBERS OF KEI INDUSTRIES LIMITED Report on the StandaloneIndian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying standalone Ind AS financialstatements of KEI Industries Limited ("the Company") which comprise theBalance Sheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Ind AS FinancialStatements

2. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements to give a true and fairview of the financial position financial performance (including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended and other accountingprinciples generally accepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone IndAS financial statements based on our audit.

4. In conducting our audit we have taken into account the provisionsof the Act and the Rules made thereunder including the accounting and auditing standardsand matters which are required to be included in the audit report under the provisions ofthe Act and the Rules made thereunder.

5. We conducted our audit of the standalone Ind AS financial statementsin accordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material mis-statement.

6. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material mis-statement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the standalone Ind ASfinancial 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 overallpresentation of the standalone Ind AS financial statements.

7. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

8. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone Ind AS financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the Ind AS and other accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2018 and its profit(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.

Other Matters

9. The comparative financial information of the Company for the yearended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016included in these standalone Ind AS financial statements are based on the statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor whose report for the year ended 31st March2017 and 31st March 2016 dated 10th May 2017 and 21st May 2016 respectively expressedan unmodified opinion on those standalone financial statements and have been restated tocomply with Ind AS. Adjustments made to the previously issued said financial informationprepared in accordance with the Companies (Accounting Standards) Rules 2006 to complywith Ind AS have been audited by us.

Our opinion on the standalone Ind AS financial statements is notmodified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by Section 143 (3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The Balance Sheet the Statementof Profit and Loss (including other comprehensive income) the Cash Flow Statement and theStatement of Changes in equity dealt with by this Report are in agreement with therelevant books of account. d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Indian Accounting Standards prescribed under Section 133 of theAct. e) On the basis of the written representations received from the directors of theCompany as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 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 A. Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting. g) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its standalone Ind AS financialstatements – Refer Note No. 44; ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses duringthe year ended 31st March 2018. 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 31st March 2018.

11. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act ("the Order") and on the basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations giventouswegiveintheAnnexureBastatement on the matters specified inparagraphs 3 and 4 of the Order.

For PAWAN SHUBHAM & CO.
Chartered Accountants
Firm Registration Number: 011573C CA Pawan Kumar Agarwal
Place of signature: New Delhi Partner
Date : 17th May 2018 Membership Number:092345

Annexure A to the Independent Auditor's Report

Referred to in paragraph 10 (f) of the Independent Auditor'sReport of even date to the members of KEI Industries Limited on the standalone IndAS financial statements for the year ended 31st March 2018.

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls over financialreporting of KEI Industries Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its 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 ofreliable financial information as required under the Act.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting 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 deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting 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 judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect 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 withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

7. Because of the inherent limitations of internal financial controlsover financial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion to the best of our information and according to theexplanations given to us 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 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For PAWAN SHUBHAM & CO.
Chartered Accountants
Firm Registration Number: 011573C CA Pawan Kumar Agarwal
Place of signature: New Delhi Partner
Date : 17th May 2018 Membership Number:092345

Annexure B to Independent Auditor's Report

Referred to in paragraph 11 of the Independent Auditor's Report ofeven date to the members of KEI Industries Limited on the Standalone Ind AS financialstatements as of and for the year ended 31st March 2018. i. (a) The Company ismaintaining proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) The fixed assets of the Company have been physically verified bythe Management during the year. The discrepancies noticed on such verification were notmaterial and have been properly dealt with in the books of account. In our opinion thefrequency of verification is reasonable.

(c) The title deeds of immovable properties as disclosed in Note 3 onfixed assets to the financial statements are held in the name of the Company. ii. Thephysical verification of inventory (excluding stocks with third parties) has beenconducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material. iii. The Company has not granted any loans secured or unsecured toCompanies firms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act. There are two parties covered in the registermaintained under Section 189 of the Act to which Company has given security deposits asper contractual obligations. (Refer Note 7).

(a) In respect of the aforesaid deposits the terms and conditionsunder which such deposits were granted are not prejudicial to the Company's interest.

(b) Since it is a security deposit no schedule for repayment of depositis applicable and no interest was charged.

(c) In respect of the aforesaid deposit there is no amount which isoverdue for more than ninety days. iv. In our opinion and according to the informationand explanations given to us the Company has complied with the provisions of Section 185and 186 of the Companies Act 2013 in respect of the loans and investments made andguarantees and security provided by it. v. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofSections 73 74 75 and 76 or any other relevant provisions of the Act and the Rulesframed thereunder to the extent notified with regard to the deposits accepted from thepublic. According to the information and explanations given to us no order has beenpassed by the Company Law Board or National Company Law Tribunal or

Reserve Bank of India or any Court or any other Tribunal on the Companyin respect of the aforesaid deposits. vi. Pursuant to the rules made by the CentralGovernment of India the Company is required to maintain cost records as specified underSection 148(1) of the Act in respect of its products. We have broadly reviewed the sameand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have not however made a detailed examination of the records witha view to determine whether they are accurate or complete. vii. (a) According to therecords of the Company and information and explanations given to us and the records of theCompany examined by us the Company has been regular in depositing the undisputedstatutory dues including provident fund employees state insurance income tax Investoreducation and protection fund goods and service tax sales tax service tax customsduty excise duty cess and other material statutory dues applicable to it with theappropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us the particulars of dues of Income Tax goods andservice tax service tax value added tax/ sales tax entry tax customs duty and exciseduty as at 31st March 2018 which have not been deposited on account of a dispute are asfollows:

Name of the Statute Nature of the Due Amount (Rs In millions) Period to which the amount relates Forum where dispute is pending
Sales/ Entry Central Sales Tax 0.67 1999-2000 Tax Board
Tax Act West Bengal Tax on Entry of Goods into Local Areas Act2012 7.14 2013-14 to 2017-18 Hon'ble High Court
Central Excise Duty Excise Duty 7.75 2005-06 2007-08 & 2008-09 CESTAT
Excise Duty 19.75 2010-11 Commissioner
Finance Act Service Tax 34.85 2011-12 to 2015-16 Commissioner
(Appeals)

viii. According to the records of the Company examined by us and theinformation and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any financial institution or bank or Government or dues todebenture holders as at the balance sheet date. ix. The Company has not raised any moneyby way of initial public offer further public offer (including debt instruments). Termloans have been applied for the purposes for which they were obtained. x. During thecourse of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.xi. The Company has paid/ provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct. xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany. xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

xiv. 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. xv. The Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the provisions of Clause 3(xv) ofthe Order are not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) ofthe Order are not applicable to the Company.

For PAWAN SHUBHAM & CO.
Chartered Accountants
Firm Registration Number: 011573C
CA Pawan Kumar Agarwal
Place of signature: New Delhi Partner
Date : 17th May 2018 Membership Number:092345