Kilpest India Ltd.
|BSE: 532067||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE994E01018|
|BSE 00:00 | 23 Jul||716.65||
|NSE 05:30 | 01 Jan||Kilpest India Ltd|
|Mkt Cap.(Rs cr)||538|
|Mkt Cap.(Rs cr)||538.20|
Kilpest India Ltd. (KILPESTINDIA) - Auditors Report
Company auditors report
The Members of Kilpest India Limited
Report on the Standalone Financial Statements
We have audited the accompanying (Standalone) financial statements ofKilpest India Limited ('the company1) which comprise the Balance Sheet as atMarch 312020 the Statement of Profit and Loss(including Other Comprehensiveincome)Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10)of the Companies Act 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the 'ICAI's Code of Ethics. We believe that the audit evidence obtainedby us is sufficient and appropriate to provide a basis for our opinion on the financialstatements.
Key Audit Matter
Key audit matters are those matters that in our professional judgementwere of most significance in our audit of the financial statements of the current year.These matters were addressed in the context of our audit of the financial statement as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to communicate inour report.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding 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 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 forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Director's are responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibility for the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial 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 financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol
Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143 (3)(If the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order 2016("the Order") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act we give in the" Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by section 143 (3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge beliefwere necessary for the purpose of our audit.
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts.
d. In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under section 133 of the Act.readwithof theCompanies (Accounts) Rules 2015 as amended.
e. On the basis of written representations received from the directorsas on March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in" Annexure B".
g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
ii. The Company did not have any long- term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
"AnnexureA" to the Independent Auditors' Report
Referred to in paragraph 1 under the heading 'Report on Other Legal& Regulatory Requirement' of our report of even date to the financial statements ofthe Company for the year ended March 312020:
1) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.
(b) The Fixed Assets have been physically verified by the management atreasonable intervals. In our opinion the frequency of verification is reasonable havingregard to the size of the company and nature of the assets. To the best of our knowledgeno material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties are held in the name of thecompany.
2) Inrespect of its lnventories:
(a) The inventory of finished goods raw and packing materials andstore and spare parts has been physically verified during the year by the management. Inour opinion the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanationsgiven to us the procedure for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business. To the best of our knowledge no material discrepancies have beennoticed on such verification.
(c) In our opinion and according to the information and explanationgiven to us the Company is maintaining proper records of inventory.
3) The company has not granted any loans secured or unsecured to firmsor other parties covered in the register maintained under section 189 of the companiesAct 2013.
4) The company has not given any loans investments guarantees andsecurity. Hence the provisions of section 185 and 186 of the Companies Act 2013 are notapplicable.
5) The company has not accepted any fresh deposits during the year.
6) In our opinion and according to the information and explanationsgiven to us the Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Companies Act 2013.
7) According to information and explanations given to us and on thebasis of our examination of the books of account and records the Company is generallyregular in depositing undisputed statutory dues including Income-Tax Duty of CustomsCess Goods and Services Tax (GST) and any other statutory dues with the appropriateauthorities applicable to it.
8) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings tofinancial institutions banks government or due to debenture holders.
9) No term loans availed during the year hence this clause is notapplicable.
10) In our opinion and according to the information and explanationgiven to us that no fraud by the Company or on the Company by its officers or employeeshas been noticed or reported during the year.
11) In our opinion and according to the information and explanationgiven to us the Company has paid /provided managerial! remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.
12) The Company is not a Nidhi Company.
13) In our opinion and according to the explanation given to us alltransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 and the details of related party transactions have been disclosed inthe Financial Statements as required by the applicable accounting standards.
14) During the year M/s Kilpest India Limited Holding company has madepreferential allotment of 1100000 equity shares of Rs. 10 each at premium of Rs. 75 pershare to non-promoters and the amount raised has been utilized towards the purpose forwhich it was raised.
15) In our opinion and according to the information and explanationgiven to us the company has not generally entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order is not applicable to the Company.
16) In our opinion and according to the information and explanationprovided to us Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order isnot applicable to the Company.
"Annexure B" to the Independent Auditor's Report of even dateon the Standalone Financial Statements of Kilpest India Limited
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of Kilpest India Limited (the Company") as of March 312020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
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 (the Guidance note) issued by the Institute of Chartered Accountantsof India". These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143( 10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial 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.
In our opinion and best of the 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 March 31 2020 based oninternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Noteon Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.