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Krypton Industries Ltd.

BSE: 523550 Sector: Auto
NSE: N.A. ISIN Code: INE951B01014
BSE 11:11 | 12 Dec 13.00 0.95
(7.88%)
OPEN

13.60

HIGH

13.60

LOW

13.00

NSE 05:30 | 01 Jan Krypton Industries Ltd
OPEN 13.60
PREVIOUS CLOSE 12.05
VOLUME 8
52-Week high 16.80
52-Week low 8.13
P/E 30.95
Mkt Cap.(Rs cr) 19
Buy Price 12.20
Buy Qty 100.00
Sell Price 13.54
Sell Qty 100.00
OPEN 13.60
CLOSE 12.05
VOLUME 8
52-Week high 16.80
52-Week low 8.13
P/E 30.95
Mkt Cap.(Rs cr) 19
Buy Price 12.20
Buy Qty 100.00
Sell Price 13.54
Sell Qty 100.00

Krypton Industries Ltd. (KRYPTONINDS) - Auditors Report

Company auditors report

To the Members of

Krypton Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone Ind AS financial statements of KryptonIndustries Limited (hereinafter referred to as Rs the Company Rs ) which comprise theBalance Sheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and a summary of the Significant Accounting Policies and otherexplanatory 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 ( Rs the Act Rs ) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe Accounting Principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder. We conducted our audit of the standalone financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe Auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers the internal financial control relevant to theCompany's preparation of the standalone financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS specifiedunder Section 133 of the Act of the State of Affairs (financial position) of the Companyas at 31st March 2018 and its loss (financial performance including other comprehensiveincome) its Cash Flows and the changes in equity for the year ended on that date.

Other Matter

The Company had prepared separate sets of statutory financial statements for the yearended 31st March 2017 and 31st March 2016 in accordance with Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rule 2014 as amended on which the company's previous auditor M/s Jagdish Agarwal &Associates (FRN- 320253E) issued auditor's reports to the Shareholders of the Companydated 30 May 2017 and 30 May 2016 respectively. These financial statements have beenadjusted for the differences in the accounting principles adopted by the Company ontransition to Ind AS which have also been audited by us. Our opinion is not modified inrespect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (herein referred to asRs the Order Rs ) issued by the Central Government of India in terms of Section 143(11) ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Statement of Cash Flows and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Companies Act 2013 readwith Rule 7 of the Companies (Accounts) Rules 2014 and the Companies (Indian AccountingStandards) Rules 2015 as amended.

(e) On the basis of Written Representation received from the Directors as on 31stMarch 2018 taken on record by the Board of Directors none of the Directors isdisqualified as on March 31 2018 from being appointed as a Director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Rs Annexure B Rs .

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company as detailed in Note 43 to the standalone financial statements hasdisclosed the impact of pending litigations as on March 31 2018 on its financial positionin its standalone financial statements.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv) The disclosures requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichis not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

For P. K. LUHARUKA & CO.
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO. 322020E
Place : Kolkata. PRADEEP KUMAR LUHARUKA
Dated : 30.05.2018 PARTNER
Membership No.055782

ANNEXURE Rs A Rs TO INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 9 under Rs Report on other Legal and Regulatory RequirementsRs of our report of even date to the Financial Statements of the Company for the yearended March 31 2018

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such physical verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets

(c) According to the information and explanations given to us and the records examinedby us and on the basis of our examination of the records of the company the title deedsof immovable properties are held in the name of the Company except for leasehold buildingacquired pursuant to the scheme of Amalgamation (i.e. Eco Wheels Pvt. Ltd. and BaronsPolymers Pvt. Ltd.) as per High Court Order dated 28.02.2013.

(ii) During the year the inventories have been physically verified by the management.In our opinion the frequency of verification is reasonable. On the basis of ourexamination of the record of inventories we are of the opinion that the Company ismaintaining proper records of inventories. The discrepancies noticed on physicalverification of inventories as compared to book records were not material and have beenproperly dealt with in the books of account.

(iii) In respect of the loans secured or unsecured granted by the Company tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013:

(a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted were not prima facie prejudicial to the interest of the company.

(b) The borrowers are regular in repaying the Principal Amounts and interest asstipulated and are also regular in payment of as applicable.

(c) There is no overdue amount for more than 90 days.

(iv) In our opinion and to the best of information and explanations given to us theCompany has complied with the provisions laid downunder sections 185 or 186 of the Actwith respect to loans and investments made in the current year. However Opening balanceof such loans granted to Rs persons in whomthe director is interested Rs before thecommencement of Section 185 still exists on Balance Sheet date.

(v) According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of Paragraph3 of the Order are not applicable.

(vi) We have broadly reviewed the cost records maintained by the as prescribed by theCentral Government under section 148(1) of the Companies Act 2013 and are of the opinionthat prima facie the prescribed cost records have been made and maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

(vii) In respect of Statutory Dues:

(a) According to the information and explanations given to us and on the basis ofexamination of records given to usamounts deducted/accrued in the books of accounts inrespect of undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Sales Tax Custom Duty Excise Duty Value Added Tax etc have been generallyregularly deposited during the year by the company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax Sales TaxCustom Duty Excise Duty Value Added Tax etc were in arrears as at 31st March 2018 fora period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and on the basis ofexamination of records given to us there are no dues of customs which have not beendeposited with appropriate authorities on account of any dispute. However according toinformation and explanations given to us dues of Income Tax aggregating Rs 1433509/-and Sales Tax aggregating Rs 5014928.60/- which have not been deposited on account ofdisputes the details of which are set out below. We have been informed that there are nofurther dues in respect of income tax sales tax and custom duty which have not beendeposited on account of any dispute.

Amount (Rs)
Sl. No. Name of the Statute Nature of the Dues Amount of Demand / Dispute (Rs) Amount Deposited (Rs) Period to which the amount relates Forum where the dispute is pending Remark if any
1 Income Tax Act 1961 Income Tax (For the Company) Rs 1433509/- AY : 2012-13 Appeal u/s 246A before CIT (Appeals)
2 Central Sales Tax Act/WB VAT Act. Sales Tax & VAT (For the Company) Rs 4356213/- Rs 38300/- FY : 2010-11 Appeal with joint Commissioner
3 Sales Tax & VAT (For the Company) Rs 697015.60/- FY : 2010-11 Appeal with joint Commissioner

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or government. Further the Companyhas not issued any debentures.

Hence reporting under Clause (viii) of the Order is not applicable to the Company.

(ix) The Company did not raise any money by way of Initial Public Offer or FurtherPublic Offer (including debt instruments). All money raised by Term loans was applied forthe purposes for which it was raised.

(x) According to the information and explanations given to us no material fraud on orby the Company by its officer or employees has been noticed or reported during the courseof our audit.

(xi) According to the information and explanations given to us and on the basis ofexamination of records of the Company the Company has paid/provided for ManagerialRemuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence reporting under Clause (xii) of CARO 2016 Orderis not applicable here.

(xiii) According to the information and explanations given to us and on the basis ofexamination of records of the Company the transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions has been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and on the basis ofexamination of records of the Company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearand hence reporting under Clause (xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us and on the basis ofexamination of records of the Company the Company has not entered into any non-cashtransactions with its directors or persons connected with him. Accordingly paragraph 3(xv)of Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934

For P. K. LUHARUKA & CO.
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO. 322020E
Place : Kolkata. PRADEEP KUMAR LUHARUKA
Dated : 30.05.2018 PARTNER
Membership No.055782