Kriti Industries (India) Ltd.
|BSE: 526423||Sector: Industrials|
|NSE: KRITIIND||ISIN Code: INE479D01038|
|BSE 00:00 | 06 Jul||19.80||
|NSE 05:30 | 01 Jan||Kriti Industries (India) Ltd|
|Mkt Cap.(Rs cr)||98|
|Mkt Cap.(Rs cr)||98.21|
Kriti Industries (India) Ltd. (KRITIIND) - Auditors Report
Company auditors report
Kriti Industries (India) Limited
Report on Audit of the Standalone Financial Statements:
We have audited the accompanying standalone financial statements ofKRITI INDUSTRIES (INDIA) LIMITED ("the Company") which comprise the BalanceSheet as at 31st March 2019 the Statement of Profit and Loss (including otherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the Standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under Section 143(10) of theCompanies Act 2013. Our Responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone 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 standalone financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on our standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.
Information Other than the Standalone Financial Statements andAuditor's Report Thereon :
The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information ('the Other Information") but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements:
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis for accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements:
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with the SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof the users taken on the basis of these financial statements.
As part of an audit in accordance with SAs the auditor exercisesprofessional judgment and maintains professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error; to design and performaudit procedures responsive to those risks; and to obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsiblefor expressing our opinion on whether the Company has adequate internal financial controlssystem in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
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 our report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of our audit report. However future events or conditions maycause an entity to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregrate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 of the Act we give in the "Annexure A" a statement on thematters specified in 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164 (2) of the Act.
(f ) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and the operating effectiveness of the Company'sinternal financial controls over financial reporting.
(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)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 32.3 to thestandalone Ind AS financial statements.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There was no delay in transferring the amount required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2019.
"Annexure A" to the Auditor's Report
The Annexure referred to in paragraph 1 under "Report on otherLegal and Regulatory Requirements" of our Independent Auditor's Report of evendate on the standalone Ind AS financial statements to the members of Kriti Industries(India) Limited for the year ended 31st March 2019 we further report that :
b. As informed to us the management of the Company has done physicalverification of certain fixed assets at reasonable intervals in accordance with programmeof verification which in our opinion is reasonable having regard to the size of theCompany and nature of its assets and no material discrepancies were noticed on suchverification.
c. The title deeds of immovable properties are held in the name of theCompany.
(ii) As informed to us the inventory of the Company has beenphysically verified during the year by the management at reasonable intervals.Discrepancies noticed during the physical verification of stock were not material and havebeen properly dealt with in the books of accounts of the Company.
(iii) As per information and explanation given to us the Company hasgranted unsecured loan to one (1) company covered in the register maintained under section189 of the Companies Act 2013.
a. In respect of loan granted to the body corporate the terms andconditions of the loans are prima facie not prejudicial to the interest of the Company.
b. The terms of arrangement do not stipulate any repayment schedule andalso the loan is repayable on demand. The borrower has been regular in the payment ofinterest as stipulated.
c. As there is no specified repayment schedule of the loan granted tothe body corporate the clause (iii) (c) of the order is not applicable to the Company.
(iv) As per information and explanation given to us the Company hascomplied all provisions in respect of loans investment and guarantees covered undersection 185 to section 186 of the Companies Act 2013.
(v) In our opinion and according to the information and explanationsgiven to us the Company neither accepted nor invited any deposits from public within theprovision of Section 73 to 76 of Companies Act 2013 and rules made there under.
(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of thecost records under section 148 (1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havehowever not made detailed examinations of the records with a view to determine whetherthey are accurate or complete.
(vii) a. According to the information and explanation given to us theCompany has been generally regular in depositing undisputed dues relating to ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax Duties ofCustoms Duties of Excise Value Added Tax Cess and other material statutory duesapplicable to it with appropriate authorities. There are no undisputed statutory duespayable which are outstanding as at 31st March 2019 for a period of more than 6 monthsfrom the date they became payable.
b. According to the information and explanations given to us followingdues of Income Tax Sales Tax Service Tax duties of Customs duties of Excise or ValueAdded Tax has not been deposited on account of any dispute :
(viii) According to information and explanations given to us by themanagement and according to the records of the Company examined by us we are of theopinion that the Company has not defaulted in repayment of any loan from FinancialInstitutions Banks or debenture holders.
(ix) To the best of our knowledge and belief and according to theinformation and explanations given to us and based on documents provided to us theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments) during the year. However term loan availed by the Companywere prima-facie applied by the Company for the purposes for which the loans wereobtained.
(x) During the course of our examination of the books of accounts andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud on the Company by itsofficers/employees or by the Company noticed or reported during the year nor have webeen informed of any such case by the Management.
(xi) According to the information and explanation given to us andbased on documents provided to us the managerial remuneration has been paid /provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
(xiii) According to the information and explanation given to us andbased on document provided to us all transactions with the related parties are incompliance with section 188 & section 177 of the Companies Act 2013 where applicableand details of such transactions to the extent required has been disclosed in thestandalone Ind AS financial statements as required by applicable accounting standards.
(xiv) According to the information and explanation given to us theCompany has not made any preferential allotment/private placement of shares or fully orpartly convertible debenture during the year.
(xv) According to the information and explanation given to us theCompany has not entered into any non-cash transactions with Directors or Persons connectedwith him.
(xvi) In our opinion and according to explanations given to us theCompany is not required to get registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
"Annexure B" to the Auditor's Report
The Annexure referred to in paragraph 2(f ) under "Report on otherLegal and Regulatory Requirements" of our Independent Auditor's Report of evendate on the standalone Ind AS financial statements to the members of Kriti Industries(India) Limited for the year ended 31st March 2019.
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Kriti Industries (India) Limited ("the Company") as of 31st March2019 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and Standards on Auditing and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by ICAI . Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone Ind AS financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that:
1. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
2. provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and
3. provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2019 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.