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Kriti Industries (India) Ltd.

BSE: 526423 Sector: Industrials
NSE: KRITIIND ISIN Code: INE479D01038
BSE 10:51 | 11 Dec 32.00 0.50
(1.59%)
OPEN

31.00

HIGH

32.40

LOW

30.30

NSE 05:30 | 01 Jan Kriti Industries (India) Ltd
OPEN 31.00
PREVIOUS CLOSE 31.50
VOLUME 1155
52-Week high 62.80
52-Week low 29.25
P/E 13.62
Mkt Cap.(Rs cr) 159
Buy Price 31.25
Buy Qty 10.00
Sell Price 32.30
Sell Qty 50.00
OPEN 31.00
CLOSE 31.50
VOLUME 1155
52-Week high 62.80
52-Week low 29.25
P/E 13.62
Mkt Cap.(Rs cr) 159
Buy Price 31.25
Buy Qty 10.00
Sell Price 32.30
Sell Qty 50.00

Kriti Industries (India) Ltd. (KRITIIND) - Auditors Report

Company auditors report

To

The Members

Kriti Industries (India) Limited

Report on the Standalone Ind AS Financial Statements:

We have audited the accompanying standalone Ind AS financial statements of KRITIINDUSTRIES (INDIA) LIMITED ("the Company") which comprise the Balance Sheetas at March 31 2018 and the Statement of Profit and Loss (including otherComprehensive Income) the Cash Flow Statement and the Statement for Changes in Equityfor the year then ended and a summary of significant accounting policies and otherexplanatory 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cashflows and statement of changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ( IndAS) prescribed under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; 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 Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility:

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting standards andstandards on auditing and matters which are required to be included in the audit reportunder the 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 standalone Ind AS financial statements are freefrom material 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 but not for the purpose of expressing an opinion on whether the Company hasin place an adequate financial controls system over financial reporting and the operatingeffectiveness of such controls. 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 issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS 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 including the Ind AS of thefinancial position of the Company as at 31st March 2018 and its financial performanceincluding other comprehensive income its cash flows and the statement of changes inequity 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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

2) 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andthe Statement of Changes in equity dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (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 ourseparate report in "Annexure B"; 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 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 standalone Ind AS financial statements - Refer Note 34.3 to the standaloneInd AS financial statements. ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii.There was no amount required to be transferred to the Investor Education and ProtectionFund by the Company during the year ended 31st March 2018.

FOR RAKESH KUMAR & ASSOCIATES

Chartered Accountants

Firm Reg. No. : 002150C

CA. RAKESH KUMAR GUPTA

Partner

Membership No.: 070906

Place : Indore

Date : 16 May 2018

"Annexure A" to the Auditor's Report

The Annexure referred to in paragraph 1 under "Report on other Legal andRegulatory Requirements" of our Independent Auditor's Report of even date on thestandalone Ind AS financial statements to the members of Kriti Industries (India)Limited for the year ended 31st March 2018 we further report that : (i) a. Asinformed to us the Company has maintained proper records on yearly basis showing fullparticulars including quantitative details and situation of fixed assets. b. As informedto us the management of the Company has done physical verification of certain fixedassets at reasonable intervals in accordance with programme of verification which in ouropinion is reasonable having regard to the size of the company and nature of its assetsand no material discrepancies were noticed on such verification. c. The title deeds ofimmovable properties are held in the name of the company except the title deeds of theland acquired pursuant to the scheme of demerger in earlier year which are pending forregistration in the name of the company.

(ii) As informed to us the inventory of the Company has been physically verifiedduring the year by the management at reasonable intervals. Discrepancies noticed duringthe physical verification of stock were not material and have been properly dealt with inthe books of accounts of the company. (iii) As per information and explanation given tous the Company has granted unsecured loan to one (1) company covered in the registermaintained under section 189 of the Companies Act 2013. a. In respect of loan granted tothe body corporate the terms and conditions of the loans are prima facie not prejudicialto the interest of the company. b. The terms of arrangement do not stipulate any repaymentschedule and also the loan is repayable on demand. The borrower has been regular in thepayment of interest as stipulated. c. As there is no specified repayment schedule of theloan granted to the body corporate the clause (iii) (c) of the order is not applicable tothe company. (iv) As per information and explanation given to us the Company has compliedall provisions in respect of loans investment and guarantees covered under section 185 tosection 186 of the Companies Act 2013. (v) In our opinion and according to theinformation and explanations given to us the Company neither accepted nor invited anydeposits from public within the provision of Section 73 to 76 of Companies Act 2013 andrules made there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government for the maintenance of the cost records undersection 148 (1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have however not madedetailed examinations of the records with a view to determine whether they are accurate orcomplete.

(vii) a. According to the information and explanation given to us the Company has beengenerally regular in depositing undisputed dues relating to Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax Duties of Customs Duties of ExciseValue Added Tax Cess and other material statutory dues applicable to it with appropriateauthorities. There are no undisputed statutory dues payable which are outstanding as atMarch 31 2018 for a period of more than 6 months from the date they became payable. b.According to the information and explanations given to us following dues of Income TaxSales Tax Service Tax duties of Customs duties of Excise or Value Added Tax has notbeen deposited on account of any dispute :–

Name of the Statute (Nature of the Dues) Forum where Matter is pending Period to which the amounts relates Amount (in Rs.)
Central Sales Tax High Court Of MP 2005-06 7238189
Central Sales Tax High Court Of MP 2006-07 1335795
Entry Tax High Court Of MP 2007-08 1355843
Central Sales Tax Appellate Board Bhopal 2008-09 114553
Central Excise Commissioner of Central Excise (Appeals) (Bhopal) 2008-09 to 12-13 1688478
Central Excise Commissioner of Central Excise (Appeals) (Bhopal) 2008-09 81000
Central Sales Tax Appellate Board Bhopal 2009-10 227206
M.P. Commercial Tax Appellate Board Bhopal 2009-10 741835
M.P. Commercial Tax Appellate Board Bhopal 2009-10 845026
Central Sales Tax Appellate Board Bhopal 2010-11 589001
M.P. Commercial Tax Appellate Board Bhopal 2010-11 3154351
Central Sales Tax Appellate Board Bhopal 2011-12 1587144
Central Excise Commissioner of Central Excise (Appeals) (Bhopal) 2011-12 & 12-13 7474000
M.P. Commercial Tax Appellate Board Bhopal 2011-12 4405077
Central Excise Commissioner of Central Excise ( Appeal) 2012-13 79417
Entry Tax Appellate Board Bhopal 2012-13 380439
M.P. Commercial Tax Appellate Board Bhopal 2012-13 892446
Central Excise Commissioner of Central Excise (Appeals) (Bhopal) 2013-14 3216800
M.P. Commercial Tax Appellate Board Bhopal 2013-14 145746
Central Excise Commissioner of Central Excise (Appeals) (Bhopal) 2014-15 & 15-16 7517771
Central Sales Tax Deputy Commissioner Indore 2014-15 269734
M.P. Commercial Tax Additional Commissioner Indore 2014-15 49995
Central Sales Tax Additional Commissioner Indore 2015-16 846438
M.P. Commercial Tax Additional Commissioner Indore 2015-16 170987

(viii) According to information and explanations given to us by the management andaccording to the records of the company examined by us we are of the opinion that theCompany has not defaulted in repayment of any loan from Financial Institutions Banks ordebenture holders.

(ix) To the best of our knowledge and belief and according to the information andexplanations given to us and based on documents provided to us the company has not raisedany money by way of initial public offer or further public offer (including debtinstruments) during the year. However term loan availed by the Company were prima-facieapplied by the Company for the purposes for which the loans were obtained. (x) During thecourse of our examination of the books of accounts and records of the Company carried outin accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instance ofmaterial fraud on the company by its officers/employees or by the Company noticed orreported during the year nor have we been informed of any such case by the Management.

(xi) According to the information and explanation given to us and based on documentsprovided to us the managerial remuneration has been paid / provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with schedule V tothe Companies Act 2013.

(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. (xiii) According to the information and explanation given to us and based ondocument provided to us all transactions with the related parties are in compliance withsection 188 & section 177 of the Companies Act 2013 where applicable and details ofsuch transactions to the extent required has been disclosed in the standalone Ind ASfinancial statements as required by applicable accounting standards.

(xiv) According to the information and explanation given to us the Company has notmade any preferential allotment/ private placement of shares or fully or partlyconvertible debenture during the year.

(xv) According to the information and explanation given to us the Company has notentered into any non-cash transactions with Directors or Persons connected with him.

(xvi) In our opinion and according to explanations given to us the company is notrequired to get registered under section 45-IA of the Reserve Bank of India Act 1934.

FOR RAKESH KUMAR & ASSOCIATES

Chartered Accountants

Firm Reg. No. : 002150C

CA. RAKESH KUMAR GUPTA

Partner

Membership No. : 070906

Place : Indore

Date : 16 May 2018

"Annexure B" to the Auditor's Report

The Annexure referred to in paragraph 2(f) under "Report on other Legal andRegulatory Requirements" of our Independent Auditor's Report of even date on thestandalone Ind AS financial statements to the members of Kriti Industries (India)Limited for the year ended 31st 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 over financial reporting of KritiIndustries (India) Limited ("the Company") as of March 31 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). 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.

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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and Standards on Auditing and deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by ICAI . 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls system over financialreporting.

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 standalone Ind AS 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 authorizations ofmanagement and directors of the company; and 3. provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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 2018 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 RAKESH KUMAR & ASSOCIATES

Chartered Accountants

Firm Reg. No. : 002150C

CA. RAKESH KUMAR GUPTA

Partner

Membership No. : 070906

Place : Indore

Date : 16 May 2018