You are here » Home » Companies » Company Overview » Kriti Nutrients Ltd

Kriti Nutrients Ltd.

BSE: 533210 Sector: Industrials
NSE: N.A. ISIN Code: INE798K01010
BSE 00:00 | 11 Jun 42.65 -0.10
(-0.23%)
OPEN

43.05

HIGH

43.05

LOW

42.35

NSE 05:30 | 01 Jan Kriti Nutrients Ltd
OPEN 43.05
PREVIOUS CLOSE 42.75
VOLUME 52771
52-Week high 53.30
52-Week low 21.20
P/E 14.17
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 43.05
CLOSE 42.75
VOLUME 52771
52-Week high 53.30
52-Week low 21.20
P/E 14.17
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kriti Nutrients Ltd. (KRITINUTRIENTS) - Auditors Report

Company auditors report

 

To

The Members of Kriti Nutrients Limited INDORE

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Kriti Nutrients Limited ("theCompany") which comprise the balance sheet as at 31 March 2020 and the statement ofprofit and loss (including other comprehensive income) statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2020 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the 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 financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

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.

Key Audit Matter Auditor's Response
Provisions and Contingent liabilities in respect of certain litigations of Assessment of Direct and Indirect Taxes and related to leasehold land of factory building not acknowledged as debt. (Note No. 31.3 and 31.4 respectively read with Note No. 2.2.9 to the financial statements): Our audit approach involved :-
a. Understanding the current status of the litigations/tax assessments;
b. Examining communication received from various Tax Authorities/ Judicial forums and follow up action thereon;
The Company has material uncertain tax positions including other 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.
c. Evaluating the merit of the subject matter under consideration with reference to available independent legal / tax advice; and
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.
We determined the above area as a Key Audit Matter in view of associated uncertainty relating to the outcome of these matters.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. Based on the work we have performed we conclude that there is a material isstatement of this other information we are required to report that fact. We have nothingto report in this regard.

Management's Responsibility for the Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs profit and other comprehensiveincome changes inequity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Going Concern

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Board of Directors is alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould

reasonably be expected to influence the economic decisions of users taken on the basisof these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditors' report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that

a matter should not be communicated in our report because the adverse consequences ofdoing so 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 (Auditors' Report)Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

(A) As required by Section 143(3) of the Act were port 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 statement of changes in equity and the statement of cash flows dealt with bythis report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31March 2020taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B".

(B) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule11 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 as at 31 March 2020 onits financial position in its financial statements - Refer Note 29 to the financialstatements;

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.

(c) With respect to the matter to be included in the Auditors' Report under Section197(16):In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197of the Act. The remuneration paid to any director is notin excess of the limit laid down under Section 197of the Act. The Ministry of CorporateAffairs has not prescribed other details under Section 197(16) which are required to becommented upon by us.

For: R. S. BANSAL & Co.
Chartered Accountants
Firm's Registration No.: 000939C
(Vijay Bansal)
Partner
Place: Indore Membership No: 075344
Date: 29th June 2020 ICAI UDIN: 20075344AAAABH4374

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 2020

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:

(a) As per information and explanation given to us the Company has granted unsecuredloans to one company covered in the register maintained under section 189 of the CompaniesAct 2013.

(b) In the case of the loans granted to the company as listed in the Registermaintained under Section 189 of the Act the borrower has been regular in the repayment ofthe principal and payment of interest wherever stipulated.

(c) There are no overdue amounts in respect of loans granted to company listed in theRegister maintained under Section189 of the Act.

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 Lacks )
1. M.P COMMERCIAL TAX APPELLATE BOARD BHOPAL 2004-05 21.55
2. M.P COMMERCIAL TAX HIGH COURT 2005-06 81.41
3. M.P. COMMERCIAL TAX HIGH COURT 2005-06 6.71
4. M.P. COMMERCIAL TAX ASSESSING OFFICER 2006-07 6.53
5. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2013-14 5.08
6. CENTRAL SALES TAX HIGH COURT 2006-07 114.25
8. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2015-16 0.72
9. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2014-15 1.37
10. M.P. COMMERCIAL TAX ADDITIONAL COMMISSIONER INDORE 2015-16 1.28
11. ENTRY TAX HIGH COURT 2005-06 35.98
12. ENTRY TAX APPELLATE BOARD BHOPAL 2007-08 18.22
13. ENTRY TAX APPELLATE BOARD BHOPAL 2008-09 3.91
14. ENTRY TAX HIGH COURT 2006-07 3.85
15. ENTRY TAX HIGH COURT 2008-09 14.79
16. CENTRAL SALES TAX DEPUTY COMMISIONER INDORE 2016-17 0.31

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 banks.

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 transactions have been disclosed in thefinancial statements as required by the applicable accounting standards.

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
Firm's Registration No.: 000939C
(CA. Vijay Bansal)
Place: Indore Partner
Date: 29th June 2020 Membership 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 2020 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

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 2020 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.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Director's are 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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 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.

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 Statements

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 the maintenance of records that in reasonable detail

accurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company;

(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 Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Statements

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.

For: R. S. BANSAL & Co.
Chartered Accountants
Firm's Registration No.: 000939C
(CA. Vijay Bansal)
Place: Indore Partner
Date: 29th June 2020 Membership No: 075344

.