The Shareholders of
Kriti Nutrients Limited
Report on the Financial Statements
We have audited the accompanying Financial Statements of KRITI NUTRIENTS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018the Statement of Profit & Loss (including other comprehensive income) and the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe financial 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 Standardsprescribed under Section 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. 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 there under.
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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of their risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 31 March 2018 and its profit total comprehensive income its cash flows and thechanges in equity 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 Companies Act 2013 we give in the "Annexure-A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 Sheetthe Statement of Profit and Loss including Other Comprehensive Income the Cash FlowStatement and the Statement of Changes in Equity dealt with by this report are inagreement with the books of account; (d) In our opinion the aforesaid Ind AS financialstatements comply with the Indian Accounting Standards prescribed under section 133 of theAct read with rule 7 of the Companies (Account) rules 2014 (e) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in "Annexure-B".
(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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements
Refer Note 33 to the 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.
For R.S. BANSAL & COMPANY
(CA. Vijay Bansal)
M No : 075344
"Annexure A" to the Auditor's Report
As referred to in our Independent Auditor's Report of even date to the members of KritiNutrients Limited for the year ended March 31 2018
1. FIXED ASSETS:
(a) As informed to us the company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. The entirerecords have been maintained on computer system through SAP. (a) As informed and explainedto us the management during the year has physically verified the items of the fixedassets of the company at reasonable interval and no significant discrepancies were noticedon such physical verification.
(b) The land of the company for the factory is on Lease for 99 years since 1984 fromMadhya Pradesh Audhyogik Kendra Vikas Nigam (Indore) Limited. The lease agreement isexecuted in the name of company.
(a) As informed and explained to us the inventory has been physically verified duringthe year by the management at regular intervals. (b) In our opinion and according to theinformation and explanation given to us the procedure of physical verification ofinventories followed by the management is reasonable and adequate in relation to the sizeof the Company and the nature of its business. (c) In our opinion and according to theinformation given to us the company has maintained proper records of its inventories. Nomaterial discrepancies have been noticed on physical verification of stock.
3. Loans granted:
As per information and explanation given to us the Company has not granted anysecured/unsecured loans to companies
firms LLP or other parties covered in the register maintained under section 189 of theCompanies Act 2013
4. Loan Investment and Guarantees:
In our opinion and according to the information and explanations give to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
5. Public Deposit:
According to the information and explanations given to us the company has not acceptedany deposits under sections 73 to 76 or any other relevant provisions of the Companies Actand the rules framed there under.
6. Cost Records:
We have broadly reviewed the books of account maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained
7. Statutory Dues
(a) According to the books of accounts and records examined by us according togenerally accepted auditing practices in India in our opinion the company has beenregular in depositing undisputed statutory dues. According to the information andexplanations given to us there were no undisputed amounts payable in respect of ProvidentFund Employees State Insurance Income tax Sales Tax Customs Duty Excise Duty ServiceTax Cess and other material statutory dues which have remained outstanding as at 31stMarch 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are no dues ofSales Tax Income Tax Custom Duty Excise
Duty Goods and Service Tax & Cess which have not been deposited on account of anydispute except the following :-
|Sr. No. ||Name of the Statute (Nature of the Dues) ||Forum where Matter is pending || |
Period to which the amounts relates
| || || || || |
( In Rs.)
|1. ||M.P. COMMERCIAL TAX ||APPELLATE BOARD BHOPAL ||2004-05 ||2155460 |
|2. ||M.P. COMMERCIAL TAX ||APPELLATE BOARD BHOPAL ||2005-06 ||8141497 |
|3. ||M.P. COMMERCIAL TAX ||APPELLATE BOARD BHOPAL ||2005-06 ||895411 |
|4. ||M.P. COMMERCIAL TAX ||APPELLATE BOARD BHOPAL ||2006-07 ||870630 |
|5. ||M.P. COMMERCIAL TAX ||ADDITIONAL COMMISSIONER ||2013-14 ||508767 |
|6. ||CENTRAL SALES TAX ||M. P. HIGH COURT JABALPUR ||2006-07 ||11425030 |
|7. ||CENTRAL SALES TAX ||APPELLATE BOARD BHOPAL ||2005-06 ||32699 |
|8. ||CENTRAL SALES TAX ||DEPUETY COMMISSIONER INDORE ||2014-15 ||63454 |
|9. ||M.P. COMMERCIAL TAX ||ADDITIONAL COMMISSIONER ||2014-15 ||137115 |
|10. ||M.P. COMMERCIAL TAX ||ADDITIONAL COMMISSIONER ||2015-16 ||127843 |
| || || || || |
|11. ||ENTRY TAX ||SALES TAX COMMISSIONER ||2005-06 ||5031195 |
| || || || || |
|12. ||ENTRY TAX ||APPELLATE BOARD BHOPAL ||2007-08 ||1822609 |
| || || || || |
|13. ||ENTRY TAX ||APPELLATE BOARD BHOPAL ||2008-09 ||390591 |
| || || || || |
|14. ||ENTRY TAX ||HIGH COURT ||2006-07 ||385348 |
| || || || || |
|15. ||ENTRY TAX ||HIGH COURT ||2008-09 ||1478648 |
8. Default in repayment of dues to Financial Institutions Banks Government ordebenture holders:
According to the information and explanations given to us the company has notdefaulted in repayment of dues to financial institutions banks or debenture holders.
9. Utilization of Term Loans and Initial/Further Public offer:
According to information and explanation given to us the company has not raised moneyby way of Initial/Further Public Offer
and no term loan has been obtained by the company during the year.
10. Fraud Noticed or Recorded
According to the information and explanations given to us no material fraud on or bythe Company has been noticed or reported during the year under audit.
11. Managerial Remuneration
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.
12 . Nidhi Company:
In our opinion the company is not a chit fund or a Nidhi mutual benefit fund/ society.Therefore the provisions of clause (xii) of Para 3 of the said order are not applicableto the company.
13. Transaction with Related Parties:
According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.
14 Preferential Allotment/Private Placement:
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.
15. Non-Cash Transactions:
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.
16. Registration with Reserve Bank of India:
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
For R. S. BANSAL & COMPANY
(CA. Vijay Bansal)
M No : 075344
"Annexure B" to the Auditor's Report
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 KRITINUTRIENTS LIMITED ("the Company") as of 31 March 2018 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.
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.
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 the Standards on Auditing issued by ICAI and deemedto 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 Institute of Chartered Accountants ofIndia. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's 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 Ind AS financial statements for external purposes in accordance withgenerally 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 Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial 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.
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 31 March 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 R.S. BANSAL & COMPANY
(CA. Vijay Bansal)
M No : 075344