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KPIT Technologies Ltd.

BSE: 532400 Sector: IT
NSE: KPIT ISIN Code: INE836A01035
BSE 00:00 | 14 Dec 215.20 -2.45
(-1.13%)
OPEN

217.40

HIGH

217.40

LOW

214.25

NSE 00:00 | 14 Dec 215.30 -2.50
(-1.15%)
OPEN

215.55

HIGH

217.40

LOW

214.25

OPEN 217.40
PREVIOUS CLOSE 217.65
VOLUME 30998
52-Week high 314.80
52-Week low 162.00
P/E 18.76
Mkt Cap.(Rs cr) 4,250
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 217.40
CLOSE 217.65
VOLUME 30998
52-Week high 314.80
52-Week low 162.00
P/E 18.76
Mkt Cap.(Rs cr) 4,250
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KPIT Technologies Ltd. (KPIT) - Auditors Report

Company auditors report

To the Members of KPIT Technologies Limited

Report on the Audit of the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of KPITTechnologies Limited ("the Company") which comprise the Balance Sheet as at 31March 2018 the Statement of Profit Statement of Changes in Equity and the Statement ofCash Flows for the year then ended and summary of the significant accounting policies andother explanatory information.

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the stateof affairs profit / loss (including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) prescribed under section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand 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.

In preparing the standalone Ind AS financialstatements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standaloneIndASfinancialstatements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the

Company's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

We are also responsible to conclude on the appropriateness of management's 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the standalone Ind AS financial statements or if suchdisclosures are inadequate to modify the opinion. Our conclusions are based on the auditevidence obtained up to the date of the auditor's report. However future events orconditions may cause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 its profit (including other comprehensive income) changes inequity and its cash flows 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")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss(including Other Comprehensive Income) the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account. d) In ouropinion the aforesaid standalone Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act. e) On the basis of thewritten representations received from the directors as on 31 March 2018 taken on record bythe Board of Directors none of the directors is disqualifiedas on 31 March 2018 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". g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 41 (2) tothe standalone Ind AS financial statements. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company. iv. The disclosures in thefinancial statements regarding holdings as well as dealings in specified bank notes duringthe period from 8 November 2016 to 30 December 2016 have not been made since they do notpertain to the financial year ended 31 March 2018.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Place: Mumbai Partner
Date: 23 May 2018 Membership No. 046476

Annexure A to the Independent Auditors' Report – 31 March 2018

With reference to the Annexure referred to in paragraph 1 of Report on Other Legal andRegulatory Requirements of the Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2018 we reportthat: (i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assets bywhich all of its fixed assets are verified every year. In our opinion thisperiodicityofphysicalverificationis reasonable having regard to the size of the Companyand the nature of its fixed assets. No material discrepancies were noticed on suchverification.

(c) The title deeds of the immovable properties are held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable and there were no materialdiscrepancies notedduringsuchverification.

(iii) The Company has granted unsecured loan to one body corporate covered in theregister maintained under Section 189 of the Act. In our opinion and according to theinformation and explanations given to us the terms and conditions of this loan are notprejudicial to the interest of the Company. The principal and the interest were not duefor repayment during the year. There were no amounts overdue for more than ninety days.(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 to theloans given investments made and guarantees given during the year. The Company has notgiven any loan guarantee or security covered under section 185 of the Act during theyear.

(v) The Company has not accepted any deposits in accordance with the provisions ofsections 73 to 76 of the Act and the rules made there under.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered or products manufactured bythe Company.

(vii) (a) According to the information and explanations given to us and on the basisof our examination of the records of the Company amounts deducted / accrued in the booksof account in respect of undisputed statutory dues including Provident fund Employees'State Insurance Income tax Sales tax Service tax duty of customs duty of excisevalue added tax goods and services tax cess and other material statutory dues havegenerally been regularly deposited during the year by the Company with the appropriateauthorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income tax Sales taxService tax duty of customs duty of excise value added tax goods and services taxcess and other material statutory dues were in arrears as at 31 March 2018 for a periodof more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome tax Sales tax Service tax duty of customs duty of excise value added tax orgoods and service tax which have not been deposited by the Company on account of disputesexcept for the following:

Name of the Statute Nature of Dues Forum where the dispute is pending Period to which the amount relates Amount demanded Rs million Amount paid Rs Million
Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal 2004-2011 53.16 Nil
Income Tax Act 1961 Income Tax Commissioner of Income Tax Appeals 2006 2012 4.59 Nil
Income Tax Act 1961 Income Tax Assistant Commissioner of Income Tax 2008-2012 24.50 Nil
Name of the Statute Nature of Dues Forum where the dispute is pending Period to which the amount relates Amount demanded Rs million Amount paid Rs Million
Finance Act 1994 Service tax Central Excise & Service Tax Appellate Tribunal July 2012 March 2015 215.89 26.68
Finance Act 1994 Service tax Commissioner of Service Tax October 2006 to March 2012 110.47 16.46
Central Sales Tax Act 1956 Sales Tax Deputy Commissioner of Sales Tax (Appeals) 2008-11 0.90 0.02
Central Sales Tax Act 1956 Sales Tax Deputy Commissioner of Sales Tax 2012-15 17.87 0.16

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to its banks and financial institutionsor to the government. The Company did not have any debentures during the year.

(ix) In our opinion and according to the information and explanations given to us theterm loans taken by the Company have been applied for the purpose for which they wereraised. The Company has not raised money by way of further public offer (including debtinstruments) during the year.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear. (xi) According to the information and explanations given to us the managerialremuneration is paid or provided in accordance with the requisite approvals mandated bythe provisions of section 197 read with schedule V to the Act. (xii) In our opinion andaccording to the information and explanations given to us the Company is not a NidhiCompany as per the Act. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with section 177 and 188 of theAct and the details as required by the applicable accounting standards have beendisclosed in the standalone Ind AS financial statements (xiv) According to the informationand explanations given to us the Company has not made any preferential allotment orprivate placement of shares or fully or partially convertible debentures during the year.Accordingly Paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe year. (xvi) In our opinion and according to the information and explanations given tous the Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Place: Mumbai Partner
Date: 23 May 2018 Membership No. 046476

Annexure B to the Independent Auditors' Report on the Standalone Ind AS FinancialStatements of KPIT Technologies Limited

Referred to in paragraph 2(f) in Report on Other Legal and Regulatory Requirements ofthe Independent Auditors' Report to the members of KPIT Technologies Limited on thestandalone Ind AS financial statements for the year ended 31 March 2018.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to financial statementsof KPIT Technologies 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 the internal financial controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ("the Guidance Note") issued by the Institute of Chartered Accountantsof India ("the ICAI"). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's 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 issued by ICAI anddeemed to 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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of internal financial controls with reference to financial statements

A company's internal financial control 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 control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of internal financial controls with reference tofinancialstatements

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 control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31 March 2018 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/ W-100022
Vijay Mathur
Place: Mumbai Partner
Date: 23 May 2018 Membership No. 046476