You are here » Home » Companies » Company Overview » Kranti Industries Ltd

Kranti Industries Ltd.

BSE: 542459 Sector: Engineering
NSE: N.A. ISIN Code: INE911T01010
BSE 00:00 | 22 Oct 29.25 -0.55
(-1.85%)
OPEN

29.25

HIGH

29.25

LOW

29.25

NSE 05:30 | 01 Jan Kranti Industries Ltd
OPEN 29.25
PREVIOUS CLOSE 29.80
VOLUME 3000
52-Week high 41.00
52-Week low 29.00
P/E 14.48
Mkt Cap.(Rs cr) 26
Buy Price 28.30
Buy Qty 3000.00
Sell Price 30.05
Sell Qty 3000.00
OPEN 29.25
CLOSE 29.80
VOLUME 3000
52-Week high 41.00
52-Week low 29.00
P/E 14.48
Mkt Cap.(Rs cr) 26
Buy Price 28.30
Buy Qty 3000.00
Sell Price 30.05
Sell Qty 3000.00

Kranti Industries Ltd. (KRANTIINDUST) - Auditors Report

Company auditors report

To the members of Kranti Industries Limited

Report on the standalone financial statements

1. We have audited the accompanying standalone financial statements of KrantiIndustries Limited ('the Company') which comprise the balance sheet as at March 31 2018the statement of profit and loss the cash flow statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's responsibility for the standalone financial statements

2. 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 Indian AccountingStandards ( Ind AS) specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's responsibility

3 Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

6 An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

Opinion

8. 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 2018 and its profit and its cash flows for the year ended on that date

The comparative financial information of the company for the year ended March 31 2017prepared in accordance with prevailing accounting standards. Included in these standalonefinancial statements have been audited by the predecessors The report of the predecessorauditor on the comparative financial information dated September 29 2017 expressed anunmodified opinion.

Report on other legal and regulatory requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the central government of India in terms of sub-section (11) of section 143 ofthe Act we give in Annexure B a statement on the matters specified in paragraphs 3 and 4of the Order.

10. As required by section 143 (3) of the Act I 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 purpose 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 financial statements dealt with by this report are in agreement with the booksof account.

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended);

e. On the basis of the written representations received from the directors as on 31March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms ofSection164(2) of the Act;

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 my separate reportin Annexure A; and

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 2017 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 statements - refer note to accounts in the financial statements;

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

iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For Siddharth Bogawat & Associates Chartered Accountants

Firm registration No. 131626W

Siddharth Bogawat Proprietor

Membership No. 134134 Place :Pune.

Date:

Annexure ‘A' to the Independent Auditor's Report

Referred to in paragraph 10(f) under ‘Report on other legal and regulatoryrequirements' of my report of even date)

Report on the internal financial controls under clause (i) of sub-section (3) ofsection 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of KrantiIndustries Limited ('the Company') as of March 31 2018 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's responsibility for internal financial controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting (‘the Guidance Note') issued by the Institute of CharteredAccountants of India (‘the ICAI'). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor's responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have conducted my audit inaccordance with the Guidance Note and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an auditof internal financial controls both applicable to an audit of internal ifinancialcontrols and both issued by the ICAI.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain Financial Statements - Independent Auditor'sReport reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involved 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 financial reporting includes those policiesand procedures that: ( 1) Pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company;

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

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI

For Siddharth Bogawat & Associates

Chartered Accountants

Firm registration No. 131626W

Siddharth Bogawat Proprietor

Membership No. 134134 Place :Pune.

Date : Annexure ‘B' to the Independent Auditor's Report

(Referred to in paragraph 9 under ‘Report on other legal and regulatoryrequirements' of my report of even date)

(a) The Company is maintaining proper records to show full particulars includingquantitative details and situation of all fixed assets.

(b) We have been informed that the Company has formulated a program of physicalverification of all the fixed assets over a period of two years which in our opinion isreasonable having regard to the size of the Company and nature of its assets. Accordinglythe physical verification of the fixed assets has been carried out by management duringthe year and no material discrepancies were noticed on such verification.

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

2 (a) The management of the Company has carried out physical verification of inventoryat reasonable

intervals. In our opinion the frequency of the verification is reasonable.

(b) In our opinion and according to information and explanations given to us theprocedures of physical verification followed by the management are reasonable and adequatein relation to the size of the Company and nature of its business.

(c) In our opinion the Company is maintaining proper records of inventory so far asapplicable. According to the information and explanations given to me no materialdiscrepancies were noticed on physical verification as compared to the books and records.

3. (a) The Company has granted unsecured loan to its subsidiary of Rs. 2500000/-.Themaximum amount outstanding was Rs. 2500000/-.and the year-end balance is Rs. 1500000/-

(b)ln our opinion and according to information and explanations given to me rate ofinterest and the terms and conditions of these unsecured loans are not prima facieprejudicial to the interest of the company

4. In our opinion and according to the information and explanations given to me inrespect of loans investments guarantees and security the provisions of section 185 and186 of the Act have been complied with.

5. (a)The company has accepted deposits in the form of unsecured loans from variousparties and has complied with the provisions of Section 73 to 76 and any other relevantprovisions of the Companies Act 2013.

(b) In our opinion and according to information and explanations given to us rate ofinterest and the terms and conditions of these unsecured loans are not prima facieprejudicial to the interest of the company.

(c) The company is regular in payment of the interest on the aforesaid deposits. Thereare no stipulations as to repayment of principal

6. a. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales-tax GST service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities. According tothe information and explanations given to us there were no undisputed amounts payable inrespect of provident fund employees state insurance income-tax sales-tax service taxduty of customs duty of excise cess and other statutory dues outstanding as at March 312018 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us and the records of theCompany examined by us there are no dues of goods and service tax with effect from July1 2017 sales-tax and value added tax which have not been deposited on account of anydispute. The particulars of dues of income tax as at March 312018 which have not beendeposited on account of a dispute are as follows:

Act Nature of Dues Amount Period to which amounts Relates Forum where the dispute is pending
1 Income Tax Act Income Tax Dues 1441660.00 A.Y 2015-16 Commissioner (Appeals) - Pune

7. According to the records of the Company examined by me and the information andexplanations given to us the Company has not defaulted in repayment of loans or borrowingto any financial institution bank and government or debenture holders as at the balancesheet date.

8. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. In our opinion and according to theinformation and explanations given to me the term loans were applied for the purpose forwhich they were taken.

9. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us We have neither come across anyinstances of material fraud by the Company nor on the Company by its officers oremployees noticed or reported during the year nor have been informed of such case bymanagement.

10. According to the records of the Company examined by me and the information andexplanations given to me the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Act.

11. According to the records of the Company examined by us and the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of the Act and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

12. According to the records of the Company examined by us and the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with them.

13. 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.

14 Paragraphs 3(vi) 3(xii) and 3(xiv) of the Order are not applicable to the Company

For Siddharth Bogawat & Associates

Chartered Accountants

Firm registration No. 131626W

Siddharth Bogawat Proprietor

Membership No. 134134 Place :Pune.

Date: