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Keltech Energies Ltd.

BSE: 506528 Sector: Industrials
NSE: N.A. ISIN Code: INE881E01017
BSE 00:00 | 28 Feb 686.75 -36.75
(-5.08%)
OPEN

683.05

HIGH

713.50

LOW

682.00

NSE 05:30 | 01 Jan Keltech Energies Ltd
OPEN 683.05
PREVIOUS CLOSE 723.50
VOLUME 354
52-Week high 900.00
52-Week low 549.00
P/E 6.46
Mkt Cap.(Rs cr) 69
Buy Price 684.00
Buy Qty 20.00
Sell Price 695.00
Sell Qty 5.00
OPEN 683.05
CLOSE 723.50
VOLUME 354
52-Week high 900.00
52-Week low 549.00
P/E 6.46
Mkt Cap.(Rs cr) 69
Buy Price 684.00
Buy Qty 20.00
Sell Price 695.00
Sell Qty 5.00

Keltech Energies Ltd. (KELTECHENERGIES) - Auditors Report

Company auditors report

To the Members of Keltech Energies Limited

Report on the Audit of the Standalone Ind AS Financial Statements Opinion

1 We have audited the accompanying standalone Ind AS financial statements of KeltechEnergies Limited (‘the Company') which comprise the Balance Sheet as at March31 2019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information. In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalone Ind ASfinancial statements give the information required by the Companies Act 2013 (‘theAct') 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 March 31 2019 and its profit (including other comprehensive income) changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

2 We conducted our audit in accordance with the Standards on Auditing (‘SAs')specified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial 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 (‘ICAI') together with the ethical requirements that are relevant to our auditof the standalone Ind AS financial statements under the provisions of the Act and theRules thereunder; and we have fulfilled our other ethical responsibilities in accordancewith these 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.

Key Audit Matters

3 Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the year underaudit. We have determined that there is no key audit matter to be communicated in ourreport.

Information Other than the Financial Statements and Auditor's Report Thereon

4 The Company's Board of Directors is responsible for the preparation of the otherinformation comprising of the information included in the Management Discussion andAnalysis Directors' Report including Annexures to Directors' Report and such otherdisclosures related Information excluding the standalone Ind AS financial statements andauditors report thereon (‘Other Information'). The other information is expected tobe made available to us after the date of this auditors' report. Our opinion on thestandalone Ind AS financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone Ind AS financial statements our responsibility is to read the otherinformation when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the standalone Ind AS financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

When we read the other Information and if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charges withgovernance as required under SA 720 ‘The Auditor's responsibilities Relating to otherInformation'

Responsibility of Management for Standalone Ind AS Financial Statements

5 The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under prescribed Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the standalone Ind AS financial statements managementis responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

6 Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements. Our audit process inaccordance with the SAs is narrated in Annexure 1 to this report.

Report on Other Legal and Regulatory Requirements

7 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 Act we give in the Annexure 2 a statement on the matters specified in paragraphs 3and 4 of the Order.

8 As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit and Lossincluding Other Comprehensive Income the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account. d. In ouropinion the aforesaid standalone Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 3 of the Companies(Indian Accounting Standards) Rules 2015. e. On the basis of the written representationsreceived from the directors as on March 31 2019 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2019 from being appointedas a director in terms of section 164 (2) of the Act. f. With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in Annexure 3. g. In terms ofprovisions of Section 197(16) of the Act as per the information and explanations givenwe report that the managerial remuneration paid by the Company to its Directors is inaccordance with provisions of Section 197 of the Act. h. With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us we report as under: (i) The Company has disclosed theimpact of pending litigations on the financials position in its standalone Ind ASfinancial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses. (iii) There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

 

For Khimji Kunverji & Co LLP

(Formerly Khimji Kunverji & Co)-FRN: Chartered Accountants

Firm Registration No 105146W

HASMUKH B DEDHIA

Place : Mumbai Partner (F - 033494) Date : 17.05.2019 Membership No. 17000

ANNEXURE 1 TO THE INDEPENDENT AUDITORS' REPORT

(referred to in para 6 titled "Auditor's Responsibilities for the Audit of theStandalone Ind AS Financial Statements") As part of our audit in accordancewith SAs we exercise professional judgment and maintain professional scepticism throughoutthe audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error to 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.

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 theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

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.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Annexure 2 to the Independent Auditors' Report

[referred to in para 7 under ‘Report on Other Legal and Regulatory Requirements']i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) As informed to us fixed assetswere physically verified by the Management at regular intervals. In our opinion thefrequency of physical verification is reasonable having regard to the size of the Companyand nature of its business; according to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company ii. The Inventories have been physicallyverified during the year by the management. In our opinion the frequency of suchverification is reasonable. As informed the discrepancies noticed on verification betweenthe physical stocks and the book records were not material. iii. The Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Therefore the requirement of clause (iii)(a) (iii)(b) and (iii)(c) of paragraph 3of the Order are not applicable to the company. iv. In our opinion and according to theinformation and explanations given to us the Company has not granted any loans or madeany investments or provided any guarantees or securities covered under section 185 and186 of the Act. Therefore the requirement of clause (iv) of paragraph 3 of the Order arenot applicable to the company. v. In our opinion and according to the information andexplanations given to us the Company has not accepted any deposits from the public duringthe year in terms of the provisions of Sections 73 to 76 or any other relevant provisionsof the Act and the rules framed there under. Accordingly paragraph 3(v) of the Order isnot applicable to the Company. vi. We have broadly reviewed the books of accountmaintained by the Company as specified under Section 148(1) of the Act for maintenance ofcost records in respect of products manufactured by the Company and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained.However we have not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete. vii. (a) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany amounts deducted/accrued in the books of account in respect of undisputedstatutory dues including Provident Fund Income-tax Sales-tax Service tax Goods andService Tax Cess and other material statutory dues generally have been regularlydeposited during the year by the Company with the appropriate authorities. There are noundisputed statutory dues payable in respect to the above statues outstanding as at March31 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of Goods and Service Tax andValue added tax which have not been deposited as on March 31 2019 on account of disputesexcept the following dues of Income Tax Service Tax and Sales Tax which have not beendeposited as on 31st March 2019 on account of disputes are given below:

Nature of Statue Nature of Dues Period to which the Amount Relates Forum where Dispute is Pending Amount (Rs in Lakhs)
Finance Act 1994 Service Tax 2005-06 to 2009-10 Customs Excise & Service Tax Appellate Tribunal (CESTAT) Bengaluru. 7.16
Income Tax Act 1961 Income Tax A.Y. 2011-12 CIT-Appeals 79.43
Income Tax Act 1961 Income Tax A.Y. 2015-16 CIT-Appeals 66.83
Income Tax Act 1961 Income Tax A.Y. 2016-17 CIT-Appeals 118.14
Central Sales Act 1956 Central Sales Tax 2009-10 Maharashtra Sales Tax Tribunal Mumbai. 118.01

viii. In our opinion and according to the information and explanations given to us andbased on the records of the Company the Company has not defaulted in the repayment ofloans or borrowings to financial institutions banks and government. The Company has notissued any debentures. ix. In our opinion and according to the information andexplanations given to us Company did not raise any money by way of initial public offer(including debt instruments) and loans. Hence clause (ix) of paragraph 3 of the Order isnot applicable. x. According to the information and explanations given to us no fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit. xi. According to the information and explanations give tous and based on our examination of the records of the Company the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Act. xii. In ouropinion and according to the information and explanations given to us the Company is nota Nidhi company. Accordingly reporting under clause (xii) of the Order is not applicable.xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredunder applicable Indian Accounting Standard (Ind AS). xiv. According to the informationand explanations given to us and based on our examination of the records of the Companythe Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. Accordingly reporting underclause (xiv) of the Order is not applicable to the Company. xv. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly reporting under clause (xv) of the Order is notapplicable to the Company. xvi. In our opinion The Company is not required to beregistered under section 45IA of the Reserve Bank of India Act 1934.

 

For Khimji Kunverji & Co LLP

(Formerly Khimji Kunverji & Co) Chartered Accountants

Firm Registration No 105146W

HASMUKH B DEDHIA

Place : Mumbai Partner (F - 033494) Date : 17-05-2019 Membership No. 17000

ANNEXURE 3 TO THE INDEPENDENT AUDITORS' REPORT

[referred to in paragraph 8(f) under ‘Report on Other Legal and RegulatoryRequirements']

Report on the Internal Financial Controls under Clause

(i) of Sub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financial reporting of KeltechEnergies Limited ("the Company") as at March 31 2019 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 the 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 Act.

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 Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 standalone Ind AS financial statements whether due to fraudor 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 systemover 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: (a) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (b) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone Ind ASfinancial 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 (c) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standaloneInd AS financial 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 considering the nature and size of the operations the Company has inall material respects an adequate internal financial controls system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at March 31 2019 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the ICAI.

 

For Khimji Kunverji & Co LLP

(Formerly Khimji Kunverji & Co) Chartered Accountants

Firm Registration No 105146W

HASMUKH B DEDHIA

Place : Mumbai Partner (F - 033494) Date : 17-05-2019 Membership No. 17000