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Kriti Nutrients Ltd.

BSE: 533210 Sector: Industrials
NSE: N.A. ISIN Code: INE798K01010
BSE 00:00 | 03 Jul 27.45 0.80
(3.00%)
OPEN

27.40

HIGH

27.90

LOW

26.50

NSE 05:30 | 01 Jan Kriti Nutrients Ltd
OPEN 27.40
PREVIOUS CLOSE 26.65
VOLUME 26813
52-Week high 31.90
52-Week low 12.50
P/E 7.24
Mkt Cap.(Rs cr) 138
Buy Price 27.05
Buy Qty 681.00
Sell Price 27.70
Sell Qty 200.00
OPEN 27.40
CLOSE 26.65
VOLUME 26813
52-Week high 31.90
52-Week low 12.50
P/E 7.24
Mkt Cap.(Rs cr) 138
Buy Price 27.05
Buy Qty 681.00
Sell Price 27.70
Sell Qty 200.00

Kriti Nutrients Ltd. (KRITINUTRIENTS) - Auditors Report

Company auditors report

To

The Shareholders of Kriti Nutrients Limited 34 Siyaganj Indore (M.P.)

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 2019 theStatement of Profit & Loss (including other comprehensive income) and the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Opinion

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 2019 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key Audit Matter Auditor's Response
Provisions and Contingent liabilities in respect of certain litigations of Assessment of Direct and Indirect Taxes not acknowledged as debt. (Note No. 32.3 read with Note No. 2.2.9 and 2.2.11 to the financial statements): Our audit approach involved :-
a. Understanding the current status of the litigations/tax assessments;
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. The Company's assessment is supported by the facts of matter their own judgment past experience and advices from legal and independent tax consultants wherever considered necessary. Accordingly unexpected adverse outcomes may significantly impact the Company's reported profit and the Balance Sheet. b. Examining communication received from various Tax Authorities/ Judicial forums and follow up action thereon;
c. Evaluating the merit of the subject matter under consideration with reference to available independent legal / tax advice; and
We determined the above area as a Key Audit Matter in view of associated uncertainty relating to the outcome of these matters. d. Review and analysis of evaluation of the contentions of the Company through discussions collection of details of the subject matter under consideration and the likely outcome.

Going Concern

In preparing the standalone financial statements 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.

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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safe guarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken in to 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 involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe Ind AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of their risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsider internal financial control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate 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 that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

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 the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section143 (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 including Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with Rule 7 of theCompanies (Account) Rules 2014.

(e) 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".

(f ) 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 financial statements – Refer Note 32 to 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 has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For R.S. BANSAL & Co.
Chartered Accountants
FRN: 000939C
(CA. Vijay Bansal)
Place: Indore Partner
Date: 16.05.2019 M No : 075344

Annexure - A to the Auditors' 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 2019

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.

(b) As informed and explained to us the management during the year has physicallyverified the items of the fixed assets of the company at reasonable interval and nosignificant discrepancies were noticed on such physical verification.

(c) 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.

2. Inventory:

(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 the information and explanation given to us theprocedure of physical verification of inventories followed by the management is reasonableand adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information given to us the company hasmaintained proper records of its inventories. No material discrepancies have been noticedon 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 registermaintained under section 189 of the Companies 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 2019 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 whichhave not been deposited on account of any dispute except the following :-

S. No. Name of the Statute (Nature of the Dues) Forum where Matter is pending Period to which the amounts relates Amount (in H)
1. M.P. COMMERCIAL TAX APPELLATE BOARD BHOPAL 2004-05 2155460
2. M.P. COMMERCIAL TAX HIGH COURT 2005-06 8141497
3. M.P. COMMERCIAL TAX APPELLATE BOARD INDORE 2005-06 895411
4. M.P. COMMERCIAL TAX APPELLATE BOARD INDORE 2006-07 870630
5. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 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. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2015-16 86821
9. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2014-15 137115
10. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 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
16. CENTRAL SALES TAX DEPUTY COMMISIONER INDORE 2016-17 36756

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 companyduring 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 & Co.
Chartered Accountants
FRN: 000939C
(CA. Vijay Bansal)
Place: Indore Partner
Date: 16.05.2019 M No : 075344

Annexure - B to the Auditors' 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 2019 in conjunction with ouraudit of the Ind AS 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 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 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 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 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.

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 31 March 2019 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 & Co.
Chartered Accountants
FRN: 000939C
(CA. Vijay Bansal)
Place: Indore Partner
Date: 16.05.2019 M No : 075344