You are here » Home » Companies » Company Overview » Kokuyo Camlin Ltd

Kokuyo Camlin Ltd.

BSE: 523207 Sector: Services
NSE: KOKUYOCMLN ISIN Code: INE760A01029
BSE 00:00 | 17 Sep 66.80 -1.00
(-1.47%)
OPEN

68.95

HIGH

68.95

LOW

66.05

NSE 00:00 | 17 Sep 66.60 -1.20
(-1.77%)
OPEN

68.80

HIGH

68.80

LOW

66.15

OPEN 68.95
PREVIOUS CLOSE 67.80
VOLUME 40316
52-Week high 79.85
52-Week low 52.20
P/E
Mkt Cap.(Rs cr) 670
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 68.95
CLOSE 67.80
VOLUME 40316
52-Week high 79.85
52-Week low 52.20
P/E
Mkt Cap.(Rs cr) 670
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kokuyo Camlin Ltd. (KOKUYOCMLN) - Auditors Report

Company auditors report

To The Members of Kokuyo Camlin Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Kokuyo Camlin Limited ("theCompany") which comprise the balance sheet as at 31 March 2021 and the statement ofprofit and loss (including other comprehensive income) statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and loss and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matter.

Description of Key Audit Matter

The key audit matter How the matter was addressed in our audit
Revenue recognition (refer note 3.01 and 44 – to the financial statements) Our audit procedures included the following:
Revenue from the sale of goods is rec- ognised when the control of the goods has passed to the customers which is on dispatch/delivery of the goods. Accounting policies: Assessed the Company's accounting poli- cies with respect to revenue rec- ognition discounts and rebates by comparing with applicable accounting standards.
There is a risk that revenue may be Overtated to achieve performance tar- gets at the reporting period end. Control testing: Tested the design implementation and operating effectiveness of the Company's controls over recording revenue and estimating and recording the amount of provisions for schemes and discounts.
Revenue is measured net of discounts incentives and rebates earned by cus- tomers on the Company's sales. The estimation of discounts incentives and rebates is significant and considered to be complex and requires significant degree of judgment. There is a risk that revenue may be Overtated through incorrect estimation of the discounts incentives and rebates recognised to achieve performance targets at the re- porting period end. Tests of details:
Accordingly revenue recognition is a key audit matter. Tested by selecting statistical samples underlying documen- tation/records for sales trans- actions recorded at year end to determine whether revenue has been recognised in the correct period.
Tested by selecting statistical samples the underlying docu- mentation for discounts incen- tives and rebates recorded and disbursed during the year.
Assessed the Company's compu- tations for accrual of discounts incentives and rebates on a sample basis and compared the accruals made with the ap- proved schemes and underlying documents.
Assessed manual journals posted to revenue to identify unusual or irregular items.
Compared past trends of pay- ments and reversals of provisions for discounts incentives and re- bates to evaluate the historical accuracy of provisions made.
Considered the adequacy of the Company's disclosures in respect of revenue.
The key audit matter How the matter was addressed in our audit
Provisioning for slow moving inventory (refer note 10 – to the financial statements) Our audit procedures included the following:
The Company makes provisions for slow moving / non-moving inventories based on certain specific percentages assigned to the inventory ageing. The Company also makes specific provi- sions for slow moving items. Due to the significant number of stock keeping units (SKUs) in the various categories of inventories significant judgment is required by the Company in determin- ing the inventory provisioning. Accounting policies: Assessed the Company's accounting pol- icies for inventory provisioning.
There is a risk that inventory may be Overtated on account of inappropri- ate provisioning for non-moving inven- tories. Control testing: Tested the effec- tiveness of the Company's con- trols over the assessment and re- cording of slow moving inventory provision.
Tests of details:
Accordingly provisioning for inventory is a key audit matter. Tested the sales of slow moving inventory during the period and assessed the Company's plans for future disposal of such stocks. Tested the estimated future sales values less estimated costs to sell against the carrying value of the inventories.
Compared the historical trend of Company's estimates against actual outcomes to assess the im- pact of provision of slow moving inventory.
Tested the inventory written off against the provisions recorded.
Considered the adequacy of the Company's disclosures in re- spect of provisions for inventory.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors' Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Management and Board of Directors areresponsible 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 the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for Overeeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error 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 with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the financial statements made by theManagement and Board of Director.

Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a 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.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant de_ciencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matter We describe these matters inour auditors' report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2 (A) 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 of account as required by law have been kept by theCompany so far as it appears from our examination of those books. c) The balance sheetthe statement of profit and loss (including other comprehensive income) the statement ofchanges in equity and the statement of cash flows dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid financial statementscomply with the Ind AS specified under section 133 of the Act. e) On the basis of thewritten representations received from the directors as on 31 March 2021 taken on record bythe Board of Directors none of the directors is disqualified as on 31 March 2021 frombeing appointed as a director in terms of Section 164(2) of the Act. f) With respect tothe adequacy of the internal financial controls with reference to financial statements ofthe Company and the operating effectiveness of such controls refer to our separate Reportin "Annexure B".

B) With respect to the other matters to be included in the Auditors' 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) TheCompany has disclosed the impact of pending litigations as at 31 March 2021 on itsfinancial position in its financial statements - Refer Note 32 to the financialstatements; ii) The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts – Refer Note 42 to the financial statements; iii)There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company; and iv) The disclosures in the financial statementsregarding holdings as well as dealings in specified bank notes during the period from 8November 2016 to 30 DecembeRs 2016 have not been made in these financial statements sincethey do not pertain to the financial year ended 31 March 2021. C) With respect to thematter to be included in the Auditors' Report under Section 197(16) of the Act: In ouropinion and according to the information and explanations given to us the remunerationpaid by the Company to its directors during the current year is in accordance with theprovisions of Section 197 of the Act. The remuneration paid to any director is not inexcess of the limit laid down under Section 197 of the Act. The Ministry of CorporateAffairs has not prescribed other details under Section 197(16) of the Act which arerequired to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No.101248W/W-100022
Vijay Mathur
Mumbai Partner
18 June 2021 Membership No: 046476
UDIN: 21046476AAAAEB2398

Annexure A to the Independent Auditors' Report on Financial Statements

(Refered to our report of even date) i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets and investment properties.

(b) The Company has a regular programme of physical verification of its fixed assetsand investment properties by which the property plant and equipment and investmentproperties are verified by the management according to a programme designed to cover allthe items over one year. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Inaccordance with the policy the Company has physically verified all its fixed assets andinvestment properties during the year and no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties of landand buildings and investment properties as disclosed in note 4 and note 5 of the financialstatements are held in the name of the Company. ii. The inventories except goods intransit and stocks lying with third parties have been physically verified by themanagement at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. For stocks lying with third parties at the year end writtenconfirmations have been obtained and in respect of goods-in-transit subsequent goodsreceipts have been verified. The discrepancies noticed on verification between thephysical stocks and the book records have been properly dealt with in the books ofaccount.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3 (iii) of the Order is not applicable to theCompany.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Act with respect toinvestments made. The Company has not granted any loans or provided any guarantees orsecurity to parties covered under section 185 and 186 of the Act.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits to which the directives issued by the Reserve Bankof India or the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under apply. Accordingly paragraph 3(v) of the Order isnot applicable to the Company.

vi. We have broadly reviewed the books of account relating to manufacture of stationeryitems maintained by the Company pursuant to the rules prescribed by the Central Governmentfor the maintenance of cost records under section 148(1) of the Act and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave not however made a detailed examination of the same with a view to determinewhether they are complete or accurate.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance duty of customs Goods and Services Tax Income Tax Cess Professional taxLabor welfare fund and other material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance duty of customs Goodsand Services Tax Income Tax Cess Professional tax Labor welfare fund and othermaterial statutory dues were in arrears as at 31 March 2021 for a period of more than sixmonths from the date they became payable. (b) According to the information andexplanations given to us there are no dues of Income Tax Sales-tax Service tax duty ofcustoms duty of excise Goods and Services tax and Value added tax which have not beendeposited with the appropriate authorities on account of any dispute except as follows:

Name of the Statute Nature of dues Amount Demanded Rs. in lakhs Amount Paid Rs. in lakhs Period to which the amount relates Forum where dispute is pending
The Income tax Act 1961 Income tax 2040.92 - AY 2006-07 and AY 2018-19 Income tax Appellate Tribunal
The Income tax Act 1961 Income tax 35.71 - AY 2017-18 Assessing officer
Central Excise Act 1944 Excise duty (including Interest and penalty if applicable) 53.60 32.97 1990-95 Mumbai High court
Central Excise Act 1944 Excise duty (including Interest and penalty if applicable) 9.05 - Jan 1991 to June 1991 The Customs Excise and Service Tax Appellate Tribunal (CESTAT)
Central Sales Tax Act 1956 and Local Sales Tax Act Sales tax (including interest and penalty if applicable)

725.90

202.74

1995-96 1998-99 to 2001-02 2004-05 to 2005-06 2007-08 2009-10 to 2013-14 2014-15 2015-16 2016-17 First Appel- late
Central Sales Tax Act 1956 and Local Sales Tax Act Sales tax (including interest and penalty if applicable) 39.70 37.92 1996 to 1998 and 2000-2001 to 2008-09 Sales Tax– Tribunal
Central Sales Tax Act 1956 and Local Sales Tax Act Sales tax (including interest and penalty if applicable) 18.95 - 2015-16 to 2017-18 Assessing officer

viii. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to any financial institution or bank during the year. TheCompany did not have any loans or borrowings during the year from debenture holders orfrom the government.

ix. According to the information and explanations given to us the Company has notraised any monies by way of initial public offer or further public offer (including debtinstruments) during the year. In our opinion and according to the information andexplanations given to us the term loans taken by the Company have been applied for thepurpose which they were raised.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

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 financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or perons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable to the Company.

xvi. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No.101248W/W-100022
Vijay Mathur
Mumbai Partner
18 June 2021 Membership No: 046476
UDIN: 21046476AAAAEB2398

Annexure B to the Independent Auditors' Report on the financial statements of KokuyoCamlin Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013

(Referred to in paragraph 2 (A)(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference to financial statementsof Kokuyo Camlin Limited ("the Company") as of 31 March 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2021 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as"the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial statements. 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 with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of such internal financial controlsassessing 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 judgement 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 withreference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements include those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial 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 (3) 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 financialstatements.

Inherent Limitations of Internal Financial controls with Reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No.101248W/W-100022
Vijay Mathur
Mumbai Partner
18 June 2021 Membership No: 046476
UDIN: 21046476AAAAEB2398

.