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KIOCL Ltd.

BSE: 540680 Sector: Metals & Mining
NSE: KIOCL ISIN Code: INE880L01014
BSE 00:00 | 24 Jun 119.35 0
(0.00%)
OPEN

136.95

HIGH

136.95

LOW

118.10

NSE 00:00 | 25 Jun 120.25 1.10
(0.92%)
OPEN

121.95

HIGH

122.40

LOW

119.10

OPEN 136.95
PREVIOUS CLOSE 119.35
VOLUME 1149
52-Week high 258.70
52-Week low 114.55
P/E 66.31
Mkt Cap.(Rs cr) 7,423
Buy Price 119.35
Buy Qty 43.00
Sell Price 119.35
Sell Qty 157.00
OPEN 136.95
CLOSE 119.35
VOLUME 1149
52-Week high 258.70
52-Week low 114.55
P/E 66.31
Mkt Cap.(Rs cr) 7,423
Buy Price 119.35
Buy Qty 43.00
Sell Price 119.35
Sell Qty 157.00

KIOCL Ltd. (KIOCL) - Auditors Report

Company auditors report

To the Members of KIOCL Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof KIOCL Limited ('the Company') which comprise the balance sheet as at 31 March 2018the statement of Profit and loss (including other comprehensive income) the statement ofcash flows and the statement of changes in equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information (herein afterreferred to as "standalone Ind AS Bnancial statements").

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with relevant rules issued thereunder.

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 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

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. We have considered the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditingspecified under Section a143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe 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 misstatement 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 AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

We believe that the audit evidence we have obtained is sufVcient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including the IndAS of the financial position of the Company as at 31 March 2018 and its financialperformance including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Emphasis of Matter

We draw attention to Note 23.35 to the financial statements whichstates that during the year the company based on the recommendation of technicalCommittee reclassi ed Inventory of stores & spares to "Capital stores andspares". Full (100%) provision is already made in the previous years since the sparesare non-moving for more than the stipulated period as per the norms of the Company.Consequent upon reclassi cation value of the stores is restored to its cost amounting toRs1331.43 Lakh provision for non-moving capital spares of Rs.881.10 lakhs is withdrawnduring the year. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the order.

2. As required by section 143(5) we have included in the Annexure-Ba statement on the matters specified in the 'Directions' and in our opinion no action isrequired to be taken thereon and there is no impact on the accounts and financialstatements of the company.

3. 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 and belief were necessary for the purposes of ouraudit.

(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 the statementof cash flows and the statement of changes in equity dealt with by this Report agree withthe books of account;

(d) in our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with relevant rule issued thereunder;

(e) On the basis of the written representations received from thedirectors as on 31 March 2018 taken on record by the Board of Directors none of thedirectors is disquali ed as on 31 March 2018 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in

"Annexure C"; and

(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 as per the explanations given to us:

i. the Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements Refer Note 23.2 B othernotes forming part of the standalone Ind AS financial statements;

ii. the Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts; and

iii. there has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Anand & Ponnappan

Chartered Accountants Firm's registration number: 000111S

Sd/-

R Ponnappan

Partner

Membership number: 021695

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the membersof the Company on the standalone Ind AS financial statements for the year ended 31 March2018.

We report that:

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Txed assets.

(b) The Company has a regular programme of physical veri cation of itsfixed assets by which fixed assets are veri ed in a phased manner over a period of threeyears. In accordance with this programme certain fixed assets were veri ed by themanagement during the year and no material discrepancies were noticed on such veri cation.In our opinion this periodicity of physical veri cation is reasonable having regard tothe size of the Company and the nature of its assets.

(c) According to the information and explanations given to usand based on our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) Physical veri cation of inventory has been conducted at reasonableintervals by the management and material discrepancies were not noticed;

(iii) The Company has not granted loans to bodies corporate covered inthe register maintained under section 189 of the Companies Act 2013 ('the Act').

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not entered in to any transaction attracting the provisionsof section 185 and 186 of the Act.

(v) The Company has not accepted any deposits from the public.

(vi) Maintenance of cost records has been specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013 and suchaccounts and records have been so made and maintained.

(a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company amounts deducted/ accrued inthe books of account in respect of undisputed statutory dues including provident fundincome-tax sales tax value added tax duty of customs service tax Goods and servicetax cess and other material statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities. As explained to us the Company did nothave any dues on account of employees' state insurance and duty of excise.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax valueadded tax duty of customs service tax Goods and service tax cess and other materialstatutory dues were in arrears as at 31 March 2018 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us thereare no dues of duty of customs which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of income tax sales tax duty of excise service tax andvalue added tax have not been deposited by the Company on account of disputes :

(Rs In lakhs)

Name of the statute Nature of dues

Amount

Period to which the amount relates

Forum where dispute is pending

Central Excise Non-Payment of SAD on DTA clearance of pellets

1454.11

2010-11

CESTAT

Central Excise Non-Payment of SAD on DTA clearance of pellets

1248.99

2011-12

CESTAT

Central Excise Non-Payment of SAD on DTA clearance of pellets

3145.21

2011-12

CESTAT

Service tax Service tax

21.18

2016-17

CESTAT

Income Tax* Regular Assessment

391.77

2012-13

Commissioner of Income Tax (Appeals)

Income Tax* Regular Assessment

456.22

2013-14

Commissioner of Income Tax (Appeals)

Income Tax* Regular Assessment

192.94

2014-15

Commissioner of Income Tax (Appeals)

Income Tax* Regular Assessment (* Adj against refund)

186.44

2015-16

Commissioner of Income Tax (Appeals)

(viii) The Company does not have any loans or borrowings from anyfinancial institution banks government or debenture holders during the year.Accordingly paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its of cers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone Ind AS financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him.

Accordingly paragraph 3(xv) of the Order is not applicable.

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

For Anand & Ponnappan

Chartered Accountants Firm's registration number: 000111S

Sd/-

R Ponnappan

Partner

Membership number: 021695

Place: New Delhi Date : 22.05.2018

Annexure B to the Auditors Report

On the statement of the matters speciGed in the directions ofComptroller and Auditor General of India

1. Whether the company has clear title/lease deeds for freehold andleasehold land respectively If not please state the area of freehold and leasehold landfor which title/lease deed are not available

According to the information and explanations given to us allleasehold and freehold land re ected in the books of accounts are registered in the nameof the company except those specified in Note No.23.1 to the financial statements.

2. Whether there are any cases of waiver/write off ofdebts/loans/interest etc. if yes the reasons there for and the amount involved.

According to the information and explanations given to us during theyear under audit there are no cases of waiver/ write off of debts/loans/interest.

3. Whether proper records are maintained for inventories lying withthird parties & assets received as gifts/ grants from Government or other authorities.

According to the information and explanations given to us no portion ofthe inventories is lying with the third parties and no assets have been received asgift/grant from Government or other authorities.

For Anand & Ponnappan

Chartered Accountants Firm's registration number: 000111S

Sd/- R Ponnappan

Partner

Membership number: 021695

Place: New Delhi Date : 22.05.2018

Annexure - C to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of KIOCL Limited("the Company") as of 31 March 2018 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 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 Companies Act 2013.

Auditors' Responsibility

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 standalone Ind AS financial statements whether dueto 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorization of management and directors of thecompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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.

The management has reconciled physical verification to inventoryrecords and necessary adjustments have been made in the books once in a year to reconcilethe books with physical verification results after appropriate approvals.

Control accounts in respect of creditors for goods and services anddebtors are maintained manually outside the system.

However we applied testing controls through inquiry combined withother procedures such as observation of activities inspection of less formaldocumentation or performance of certain controls to provide sufficient evidence aboutwhether the control is effective.

Opinion

In our opinion the fundamental requirement of effective internalcontrol is a process effected by people that supports the organization in several waysenabling it to provide reasonable assurance regarding risk and to assist in theachievement of objectives

Therefore in our opinion the Company has in all material respectsan adequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2018 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Anand & Ponnappan

Chartered Accountants Firm's registration number: 000111S

Sd/- R Ponnappan

Partner

Membership number: 021695

Place: New Delhi Date : 22.05.2018

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION143(6)(b) OF THE COMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF KIOCL LIMITEDBANGALORE FOR THE YEAR ENDED ON 31 MARCH 2018

The preparation of financial statements of KIOCL Limited Bangalore forthe year ended 31 March 2018 in accordance with the financial reporting frameworkprescribed under the Companies Act 2013 (Act) is the responsibility of the management ofthe company. The Statutory Auditor appointed by the Comptroller and Auditor General ofIndia under Section 139(5) of Act is responsible for expressing opinion on the financialstatements under Section 143 of the Act based on the independent audit in accordance withthe Standards on Auditing prescribed under Section 143(10) of the Act. This is stated tohave been done by them vide their Audit Report dated 22 May 2018.

I on behalf of the Comptroller and Auditor General of India haveconducted a supplementary audit under Section 143(6)(a) of the Act of the financialstatements of KIOCL Limited Bangalore for the year ended 31 March 2018. Thissupplementary audit has been carried out independently without access to the workingpapers of the Statutory Auditors and is limited primarily to inquiries of the StatutoryAuditor and company personnel and a selective examination of some of the accountingrecords. On the basis of my audit nothing significant has come to my knowledge whichwould give rise to any comment upon or supplement to Statutory Auditor's report.

For and on behalf of the

Comptroller & Auditor General of India

Sd/-

(L.Tochhawng)

Director General of Commercial Audit &

Ex-Officio Member Audit Board

Hyderabad

Place : New Delhi Date : 22.05.2018