The Members of Kilpest India Limited
Report on the Standalone Financial Statements
We have audited the accompanying (Standalone) financial statements of Kilpest IndiaLimited ('the company') which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors are responsible for the matters stated ill Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act
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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these (Standalone) financial statementsbased on our audit .We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143( 10)of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 control relevant to the Company's preparation of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Board of Directors as well as evaluating theoverall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
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 requitedby 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 March 31 2019 and its Profit and its Cash Flow for the year ended on that date.
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 of sub-section (II) ofsection 143 of the Act we give in the "Annexure A' a statement on the mattersspecified 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 explanations which to the bestof our knowledge belief were necessary for the purpose of our audit.
b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.
c. 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 accounts.
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March312019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of Section 164 (2) of theAct.
f. 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".
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 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 its financialposition.
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 in transfering amounts required to be transferred to theInvester Education and Protection Fund by the Company during the year ended 31st March2019.
For BAHETJ & CO.
Firm's registration No: 006287C
Membership No: 075063
" Annexure A " to the Independent Auditors' Report
Referred to in paragraph I under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 312019:
1) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) The Fixed Assets have been physically verified by the management at reasonableintervals. In our opinion the frequency of verification is reasonable having regard to thesize of the company and nature of the assets. To the best of our knowledge no materialdiscrepancies have been noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
2) (a) The inventory of finished goods and raw and packing materials and store andspare parts has been physically verified during the year by the management. In ouropinion the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations given to us theprocedure for (he physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness. To the best of our knowledge no material discrepancies have been noticed onsuch verification.
(c) In our opinion and according to the information and explanation given to us theCompany is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the books records were not material and samehave been properly dea1t within the books of accounts.
3) In respect of the loans secured or unsecured granted by the Company to companiesfirms Limited Liability Partnership or other parties covered in the register maintainedunder section 189 of the companies Act 2013. Company has given interest free unsecuredadvance payable on demand to one company and also has given advance to its subsidiarycompany.
(a) In our opinion and according to the information given to us the terms andconditions of the loans given by the company are prima facie not prejudicial to theinterest of the company.
(b) The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and/or receipts of interest have been regular as perstipulations.
(c) There are no overdue amounts as at the year-end in respect of both principal andinterest.
4) The Company has given Corporate Guarantee in favor of bankers for loans provided toits subsidiary.
5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
6) In our opinion and according to the information and explanations given to us thecentral Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act 2013.
7) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities applicableto it.
8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks financial Institutions andGovernment.
9) In our opinion and according to the information and explanations given to us by themanagement the company has not raised moneys by way of initial public offer or furtherpublic offer. Monies raised by debt instruments and term Loans during the year have beenapplied by the Company for the purpose for which they were raised.
10) In our opinion and according to the information and explanation given to us thatno fraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.
11) In our opinion and according to the information and explanation given to us theCompany has paid /provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
12) The Company is not a Nidhi Company. Therefore the provisions of clause (xii) ofthe Order of Paragraph 3 of the order are not applicable to the Company.
13) In our opinion and according to the explanation given to us all transactions withthe related parties are in compliance with section 177 and 188 of Companies Act 2013 andthe details of related party transactions have been disclosed in the Financial Statementsas required by the applicable accounting standards.
14) During the FY 17-18 the company has made preferential allotment of convertiblewarrants to non promoter numbering to 1100000 warrants @ Rs. 85/- each. The company hascomplied with the requirements of Section 42 of the Companies Act 2013.
15) In our opinion and according to the information and explanation given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him. Accordingly the provisions of clause 3 (xv) of the Order is not applicable tothe Company.
16) In our opinion and according to the information and explanation provided to usCompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order is not applicableto the Company.
Firm's registration No: 006287C
Membership No: 075063
"Annexure B" to the Independent Auditor's Report of even date on theStandalone financial Statements of Kilpest India Limited
Report on the Internal Financial Controls underClause (i)ofSub-section 3 of Section 143of the Companies Act2013("the Act")
We have audited the internal financial controls over financial reporting of KilpestIndia Limited ("the Company") as of March 312019 in conjunction with our auditof the standalone 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 Reporting (theGuidance note) issued by the Institute of Chattered Accountants of India". 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 safeguarding ofits 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.
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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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 auditors 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 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 (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 arc 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 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.
In our opinion and best of the information and according to the explanations given tous the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.
Firm's registration No: 006287C
Membership No: 075063