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Kiri Industries Ltd.

BSE: 532967 Sector: Industrials
NSE: KIRIINDUS ISIN Code: INE415I01015
BSE 11:29 | 23 Jul 545.35 0.50
(0.09%)
OPEN

551.85

HIGH

555.00

LOW

538.95

NSE 11:19 | 23 Jul 543.50 -2.35
(-0.43%)
OPEN

550.00

HIGH

554.85

LOW

520.00

OPEN 551.85
PREVIOUS CLOSE 544.85
VOLUME 6690
52-Week high 684.00
52-Week low 227.05
P/E 16.67
Mkt Cap.(Rs cr) 1,709
Buy Price 543.30
Buy Qty 50.00
Sell Price 545.25
Sell Qty 104.00
OPEN 551.85
CLOSE 544.85
VOLUME 6690
52-Week high 684.00
52-Week low 227.05
P/E 16.67
Mkt Cap.(Rs cr) 1,709
Buy Price 543.30
Buy Qty 50.00
Sell Price 545.25
Sell Qty 104.00

Kiri Industries Ltd. (KIRIINDUS) - Auditors Report

Company auditors report

Independent Auditor's Report

To

The Members of Kiri Industries Limited

Report on the Standalone financial statements

We have audited the accompanying standalone financial statements of Kiri IndustriesLimited ("the Company") which comprises the Balance Sheet as at March 31 2017the Statement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone financial statements

The Company's Board of Directors is responsible for the matters stated in 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 Standardsprescribed under Section 133 of the Act as applicable.

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 standalonefinancial statements that give a true and fair view and are free from materialmis-statement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

In conducting our audit we have taken into account 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 there under.

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 standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected

depend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company's preparation of the standalone financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 requiredby 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 2017 and its profit and its cash inflows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 and belief were necessary for the purposes of our audit;

b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards prescribed under Section 133 of the Act as applicable;

e. on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 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 - A". Our report expresses an unmodified opinion onthe adequacy

and operating effectiveness of the Company's internal financial controls over financialreporting.

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 has disclosed the impact of pending litigations on its financialposition in its financial statement;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

iv. The Company has provided requisite disclosures in the standalone financialstatements as regards

its holding and dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated the 8th November 2016 of the Ministry of Finance during theperiod from 8th November 2016 to 30th December 2016. Based onaudit procedures performed and the representations provided to us by the management wereport that the disclosures are in accordance with the books of account maintained by theCompany.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For V.D. Shukla & Co.
Chartered Accountants
FRN: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 25 2017 Membership No.: 036416

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date) Report on the Internal Financial Controls OverFinancial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of KiriIndustries Ltd. ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.

Opinion

In our opinion 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 2017 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 V.D. Shukla & Co.
Chartered Accountants
FRN: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 25 2017 Membership No.: 036416

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

1. (a) The company has maintained proper records

showing full particulars including quantitative details and situation of its fixedassets.

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) As explained to us all the title deeds of immovable properties are held in thename of the company except an agricultural land intended for industrial purpose held inthe name of the chairman of the company in his fiduciary capacity as per section 88 of theIndian Trust Act 1882 pending necessary

approval for conversion of agriculture land into non agriculture land.

2. (a) As explained to us inventories have been physically

verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.

3. According to the information and explanations given to us and on the basis of ourexamination of the books of

account the Company has not granted any loans secured or unsecured to companiesfirms or other parties listed in the register maintained under Section 189 of theCompanies Act 2013. Consequently the provisions of clauses ii (a) iii (b) and iii (c)of the order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act2013.

5. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the company has not accepted any deposit u/s 73to 76 or any other relevant provisions of the Companies Act.

6. The maintenance of cost records has been specified by the Central Government underSection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under sub-section (1) of Section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

7. (a) According to the records of the company it is observed that the company isgenerally regular in depositing undisputed

statutory dues including Provident Fund Investor Education and Protection FundEmployees' State Insurance Income- tax Sales-tax Wealth Tax Service Tax Custom DutyExcise Duty cess to the extent applicable and any other statutory dues with appropriateauthorities.

(b) The disputed statutory dues that have not been deposited on account of disputedmatters pending before appropriate authorities are as under.

Sr No. Name of the Statute Section under which dispute is pending Period to which amount relates (FY) Amount (Rs. in Lakhs) Forum where the dispute is pending
1 Income Tax Act 143 (3) 2002-03 36.99 Income Tax Appellate Tribunal
1961 143 (3) 2005-06 53.67 Income Tax Appellate Tribunal
271(1)(c) 2005-06 53.67 Income Tax Appellate Tribunal
143 (3) 2007-08 8.53 Income Tax Appellate Tribunal
143 (3) 2008-09 21.18 Income Tax Appellate Tribunal
143 (3) 2009-10 19.89 Income Tax Appellate Tribunal
271(1)(c) 2009-10 0.88 Commissioner of Income Tax (Appeals)
143 (3) 2010-11 316.06 Income Tax Appellate Tribunal
2 The Central Excise CENVAT Refund 2009-10 341.08 High court
Act 1944 2009-10 83.74 Central Excise and Service Tax Appellate Tribunal
2010-11 255.23 Central Excise Commissioner Appeal
2010-11 153.73 High Court
Similar Goods 2010-11 344.00 Central Excise Commissioner Appeal
2011-12 4.09 Central Excise Commissioner Appeal
Outward Transportation of Finished Goods 2013-14 2.17 Custom Excise and Service Tax Appellant Tribunal Ahmedabad
3 The Gujarat VAT 2003 VAT Liabilities 2007-08 62.39 Gujarat Value Added Tax Tribunal

8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto any bank and debenture holder. The company has not borrowed from financial institutionor government during the year.

9. According to the information and explanation given to us the Company has not raisedmoney through initial public officer nor taken any term loan during the year. Hence thequestion of application of funds for the purpose for which these were borrowed does notarise.

10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

11. During the year under review the company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

12. Based on the audit procedures performed and the information and explanations givento us the company is not Nidhi Company therefore it is not required to follow NidhiRule 2014.

13. Based on the audit procedures performed and the information and explanations givento us the transactions

with related party are in compliance with sections 177 and 188 of the Companies Act2013.

14. According to the information and explanation given to us during the year theCompany has made preferential allotment and to a relative of a director by way ofconversion of Share Warrants into equity shares for which the requirements of section 42of the Companies Act 2013 and SEBI guidelines have been complied with and the amountraised have been used for the purposes for which the funds were raised.

15. According to the information and explanation given to us the Company has notentered in to non-cash transaction with directors or person connected with them during theyear.

16. According to the information and explanation given to us the Company is notrequired to be registered under section 45-IA of Reserve Bank of India Act 1934.

For V.D. Shukla & Co.
Chartered Accountants
FRN: 110240W
Vimal D. Shukla
Place : Ahmedabad (Proprietor)
Date : May 25 2017 Membership No.: 036416