You are here » Home » Companies » Company Overview » KSB Ltd

KSB Ltd.

BSE: 500249 Sector: Engineering
NSE: KSB ISIN Code: INE999A01015
BSE 16:00 | 22 Sep 1276.35 24.10
(1.92%)
OPEN

1221.00

HIGH

1291.50

LOW

1221.00

NSE 00:00 | 22 Sep 1274.60 20.85
(1.66%)
OPEN

1249.95

HIGH

1293.70

LOW

1235.80

OPEN 1221.00
PREVIOUS CLOSE 1252.25
VOLUME 2065
52-Week high 1375.00
52-Week low 425.45
P/E 30.68
Mkt Cap.(Rs cr) 4,443
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1221.00
CLOSE 1252.25
VOLUME 2065
52-Week high 1375.00
52-Week low 425.45
P/E 30.68
Mkt Cap.(Rs cr) 4,443
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KSB Ltd. (KSB) - Auditors Report

Company auditors report

TO THE MEMBERS OF KSB LIMITED

Report on the audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying standalone financial statements of KSB Limited(“the Company”) which comprise the Balance Sheet as at December 31 2020 theStatement of Profit and Loss(including Other Comprehensive Income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and notes to the standalonefinancial statements including a summary of significant accounting policies and otherexplanatory information.

2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (“the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at December 31 2020 total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year then ended.

Basis for opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditors' Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key audit matters

4. Key audit matters are those matters that in our professional judgement were ofmost significance in our audit of the standalone financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter
Appropriateness of Revenue Recognition in accordance with Ind AS 115 Our audit procedures included the following :
(Refer to Note1(e) 2(ii) and 21to the standalone financial statements) Understanding and evaluation of the design and testing the operating effectiveness of controls surrounding the recording of revenue in accordance with the principles of Ind AS 115.
The Company recognises revenue in accordance with Ind AS 115 “Revenue from Contracts with Customers”. Testing of customer contracts on a sample basis to assess the terms for identification of performance obligations in accordance with the Ind AS 115 and comparing those to the management assessment;
This involves application of significant judgements by Management with respect to:
Combining of multiple contracts as single contract.
Identification of distinct performance obligations; Assessing appropriateness of management's judgements and estimates involved in accounting for the sample of customer contracts including the inquiry and discussion with appropriate client personnel especially regarding the nature of products and alternative use to the company.
Allocation of consideration to identified performance obligations;
Determination of timing of recognition of revenue either over a period of time or at a point in time on transfer of control to customers. This include assessment of alternative use basis technical analysis as well as legal assessment of right to payment. Evaluation of the in-house legal counsel's views regarding the Company's right to payment for performance to date ;
Considering the above-mentioned factors appropriateness of revenue recognition in accordance with Ind AS 115 has been considered as a Key Audit Matter. Testing the appropriateness of timing of recognition of revenue (including procedures related to cut off) in line with the terms of the customer contracts;
Testing the key assumptions used by the management to estimate contract risks claims liquidated damages etc.;
Verifying the reports used by management for monitoring contracts and their progress;
Evaluating appropriateness of the disclosures provided in the standalone financial statements.
Based on above procedures we did not identify any significant exceptions in the judgements applied by the management in recognition of revenue in accordance with Ind AS 115.

Other Information

5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditors' report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the standalonefinancial statements

6. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act. 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 judgements 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.

7. 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. Those

Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also: (a) Identify and assessthe risks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

(b) 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 the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls. (c) Evaluate the appropriatenessof accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management.

(d) Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 auditors' report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

(e) Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

10. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. 11. Wealso provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

12. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements 13. As required by the Companies(Auditor's Report) Order 2016 (“the Order”) issued by the Central Governmentof India in terms of sub-section (11) of section 143 of the Act we give in the“Annexure B” a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable. 14. As required by Section 143(3) of the Act we reportthat: (a) We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit. (b) In ouropinion proper books of account as required by law have been kept by the Company so faras 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 aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act.

(e) On the basis of the written representations received from the directors as onDecember 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on December 31 2020 from being appointed as a director in terms ofSection 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in “Annexure A”.

(g) With respect to the other matters to be included in the Auditors' 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 if any of pending litigations as at December 31 2020on its financial position in its standalone financial statements - Refer Note19(b) 32(a)and 32(b) to the standalone financial statements. ii. The Company has made provision as atDecember 31 2020 as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivative contracts- Refer Note7 9 and 37(C)to the standalone financial statements. iii. There has been nodelay in transferring amounts required to be transferred to the Invest or Education andProtection Fund by the Company during the year ended December 31 2020. iv. The reportingon disclosures relating to Specified Bank Notes is not applicable to the Company for theyear ended December 31 2020.

15. The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016

Neeraj Sharma
Partner
Membership Number: 108391
UDIN: 21108391AAAABE3703
Pune February 25 2021

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 14(f) of the Independent Auditors' Report of even date to themembers of KSB Limited on the standalone financial statements for the year ended December31 2020

Report on the Internal Financial Controls with reference to standalone financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to standalonefinancial statements of KSB Limited(“the Company”) as of December 31 2020inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial

Reporting (the“Guidance Note”) and the Standards on Auditing 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 the 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 with reference to standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to standalone financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to standalone financial statements included obtaining an understanding ofinternal financial controls with reference to standalone financial statements assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

5. 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 systemwith reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to standalone financialstatements

6. A company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2)provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

7. Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to fraud or error may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at December 31 2020 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016

Neeraj Sharma
Partner
Membership Number: 108391
UDIN: 21108391AAAABE3703
Pune February 25 2021

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 13 of the Independent Auditors' Report of even date to themembers of KSB Limited on the standalone financial statements as of and for the year endedDecember 31 2020 i. (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties as disclosed in Note 3- Property plantand equipment and Note 4 - Right-of-use assets to the standalone financial statements areheld in the name of the Company. ii. The physical verification of inventory excludingstocks with third parties managed warehouse have been conducted at reasonable intervals bythe Management during the year. In respect of inventory lying with third parties thesehave substantially been confirmed by them. The discrepancies noticed on physicalverification of inventory as compared to book records were not material and have beenappropriately dealt with in the books of accounts. iii. The Company has not granted anyloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties covered in the register maintained under Section 189 of the Act. Therefore theprovisions of Clause 3(iii) (iii)(a) (iii)(b) and (iii)(c) of the said Order are notapplicable to the Company.

iv. The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186. Therefore theprovisions of Clause 3(iv) of the said Order are not applicable to the Company. v. TheCompany has not accepted any deposits from the public within the meaning of Sections 7374 75 and 76 of the Act and the Rules framed there under to the extent notified. vi.Pursuant to the rules made by the Central Government of India the Company is required tomaintain cost records as specified under Section 148(1) of the Act in respect of itsproducts. We have broadly reviewed the same and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete. vii. (a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is generally regular indepositing undisputed statutory dues in respect of employees' state insurance income taxand goods and services tax though there has been a slight delay in a few cases and isregular in depositing undisputed statutory dues including provident fund sales taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of sales tax goods and services tax duty ofcustoms value added tax which have not been deposited on account of any dispute. Theparticulars of dues of income tax service tax duty of excise as at December 31 2020which have not been deposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs in million) Amount paid under protest (Rs in million) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty (including interest and penalty if applicable) 22.65 0.59 Aug'13 to Jun'17 Commissioner of Central Excise (Appeals) Nasik
Finance Act 1994 Service Tax (including interest and penalty if applicable) 2.56 2.56 April-08 to Mar-13 Customs Excise and Service Tax Appellate Tribunal
474.59 9.49 Sept-04 to Mar-09 (CESTAT)
Income Tax Act1961 Income Tax (including interest and penalty if applicable) 3.60 - AY 1989-90 High Court / Income-tax
5.61 - AY 1995-96 Appeallate
2.88 - AY 1996-97 Tribunal (ITAT)
3.21 - AY 2005-06

The above disputed dues do not include the income tax matters as disclosed in Note13(b)(i) of the standalone financial statements. viii. According to the records of theCompany examined by us and the information and explanation given to us the Company hasnot defaulted in repayment of loans or borrowings to any financial institution or bank orGovernment as at the balance sheet date. The Company had not issued any debentures as atbalance sheet date. ix. The Company has not raised any moneys by way of initial publicoffer further public offer (including debt instruments) and term loans. Accordingly theprovisions of Clause 3(ix) of the Order are not applicable to the Company. x. During thecourse of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.xi. The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct. Also refer paragraph 15 of our standalone audit report. xii. As the Company is not aNidhi Company and the Nidhi Rules 2014 are not applicable to it the provisions of Clause3(xii) of the Order are not applicable to the Company. xiii. The Company has entered intotransactions with related parties in compliance with the provisions of Sections 177 and188 of the Act. The details of such related party transactions have been disclosed in thefinancial statements as required under Indian Accounting Standard (Ind AS) 24 RelatedParty Disclosures specified under Section 133 of the Act. xiv. The Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the provisions of Clause 3(xiv) ofthe Order are not applicable to the Company. xv. The Company has not entered into anynon-cash transactions with its directors or persons connected with him. Accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company. xvi. TheCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.Accordingly the provisions of Clause 3(xvi) of the Order are not applicable tothe Company.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016

Neeraj Sharma
Partner
Membership Number: 108391
UDIN: 21108391AAAABE3703
Pune February 25 2021

.