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Kunststoffe Industries Ltd.

BSE: 523594 Sector: Industrials
NSE: N.A. ISIN Code: INE638D01021
BSE 00:00 | 19 Jan 20.70 0
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NSE 05:30 | 01 Jan Kunststoffe Industries Ltd
OPEN 20.70
PREVIOUS CLOSE 20.70
VOLUME 260
52-Week high 22.00
52-Week low 3.57
P/E 34.50
Mkt Cap.(Rs cr) 14
Buy Price 20.70
Buy Qty 40.00
Sell Price 21.60
Sell Qty 100.00
OPEN 20.70
CLOSE 20.70
VOLUME 260
52-Week high 22.00
52-Week low 3.57
P/E 34.50
Mkt Cap.(Rs cr) 14
Buy Price 20.70
Buy Qty 40.00
Sell Price 21.60
Sell Qty 100.00

Kunststoffe Industries Ltd. (KUNSTSTOFFINDS) - Auditors Report

Company auditors report

To

The Members

KUNSTSTOFFE INDUSTRIES LIMITED

Report on the Audit of the Financial Statements

Opinion

1. We have audited the accompanying financial statements of which comprise theBalance Sheet as at 31st March 2019 and the Statement of Profit and Loss (including thestatement of KUNSTSTOFFE INDUSTRIES LIMITED ('the Company') OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year ended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as 'The Financial Statements').

2. In our opinion and to the best of our information and according to the explanationsgiven to us and subject to Notes the aforesaid financial statements give theinformation required by the Companies Act 2013 ('the Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including Indian Accounting Standards ('Ind AS') specified under section 133 ofthe Act of the state of affairs (financial position) of the Company as at 31st March2019 and its profit (financial performance including other comprehensive income) itscash flows and the statement of changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the Financial Statements in accordance with the Standardson Auditing specified under sub-section 10 of Section 143 of the Act and other applicableauthoritative pronouncements issued by the institute of Chartered Accountants of India.Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areIndependent of the Company in accordance with the code of Ethics issued by the Instituteof Chartered Accountants of India ('ICAI') together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules thereunder and we have fulfilled our other ethical requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a 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 financial statements of the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.

5. We have determined the matters described below to be the Key Audit Matters to becommunicated in our report.

Key Audit Matter How our Audit addressed the Key Audit Matter
Carrying Value of Property Plant & Equipment:- Assessing the reasonableness of the management's assertions and estimates regarding estimated useful lives and residual values based on historical experience and Govt. approved Valuer's Report.
The carrying value of Property Plant & Equipment (Total) as at 31.03.2019 was Rs 516.80 lakhs including Plant & Machinery value is Rs 177.67 lakhs and the related depreciation charge for the year was Rs 17.08 lakhs as per w/offof residual value. Discussing indicators of possible impairment with the management.
Analyzing the assumptions and critical judgements based on historical data.

Information other than the Financial Statements and Auditor's Report thereon

6. 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 financial statements and our auditor's report thereon.

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 the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the 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 FinancialStatements

7. The Company's Board of Directors is responsible for the matters stated insub-section 5 of section 134 of the Companies Act 2013 ("the Act") with respectto the preparation and presentation of these financial statements that give a true andfair view of the state of affairs(financial position) profit or loss (financialperformance including other comprehensive income) cash flow and the Statement of Changesin Equity of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. Independent Internal Auditor has been appointed by the Company todo the Internal Audit and report thereon.

8. In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operation or has no realisticalternative but to do so.

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

Auditor's Responsibilities for the Audit of the Financial statements

10. 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in aggregate they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these financial statements.

11. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain 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 risk 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 explaining our opinion on whether the Companyhas adequate internal financial control system in place and the operating effectiveness ofsuch 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 going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in thefinancial statements or if such disclosures are based on the audit evidence obtained upto the date of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a 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.

12. We communicate with those charges 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.

13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

14. From the matters communicated with those charged with governance we determinedthose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these auditmatters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements:

15. As required by Section 197(16) of the Act we report that the Company has paidremuneration to its Directors during the year in accordance with the provisions and limitslaid down under Section 197 read with Schedule V to the Act.

16. As required by the Companies (Auditor's Report) Order 2016 ('The Order') issued bythe Central Government of India in terms of sub-section 11 of section 143 of the Act wegive in the 'Annexure ARs a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

17. Further to our comments in Annexure A as required by sub section 3 of Section 143of 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 dealt and the statement of changes in equity with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofsub-section 2 of Section 164 of the Act.

f) We have also audited the internal financial control over financial reporting(IFCoFR) of the Company as on 31st March 2019 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport as per Annexure B expressed an unmodified opinion; and

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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:-

(i) The Company does not have any pending litigations which would impact its financialposition.

(ii) The Company did not have any long-term contracts including derivative contractsfor which 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

FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
A. V. Jobanputra
PROPRIETOR
Place:- Mumbai (MEMBERSHIP NO : 016352)
Date:- 08/08/2019
UDIN NO.: 19016352AAAABR6250

Annexure A

The Annexure A referred to in Para 1 - Report on Other Legal Regulatory Requirements ofour Independent Auditor's Report to the members of the Company on the financial statementsfor the year ended 31 March 2019 we report that:

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

(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals during the year which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification;

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company;

ii) In our opinion the inventories have been physically verified during the year by theManagement at reasonable intervals and as explained to us no material discrepancies werenoticed on physical verification;

iii) According to the information and explanations given to us the company has notgranted any secured or unsecured loans to Companies Firms or other parties covered inthe register maintained under section 189 of the companies Act 2013;

iv) The Company has not given loans or made investments or given guarantees andprovided security in terms of provisions of section 185 and 186 of The Companies Act2013;

v) The Company has not accepted deposits and hence the directive issued by the ReserveBank of India and the provisions of the sections 73 to 76 of the Act and the Companies(acceptance of Deposits) Rules 2014 (as amended). Accordingly the provisions of clause3(v) of the Order are not applicable to the Company;

vi) We have been informed that the Company is not required to maintain cost recordunder sub-section (1) of section 148 of the Companies Act2013.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employee's stateinsurance income tax sales tax custom Duty service tax value added tax cess and anyother statutory dues have been regularly deposited during the year by the Company with theappropriate authorities and no undisputed amounts payable were in arrears as at 31 March2019 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 disputedamounts of income tax sales tax custom duty service tax or value added tax which havenot been deposited with the concerned authorities;

viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans or borrowings to a bank. The Company hasnot obtained any borrowing from any financial institutions Government or by way ofdebentures;

ix) On the basis of records examined by us and the information and explanations givento us the Company has not raised money by way of initial public offer or further publicoffer during the year;

x) In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the year;

xi) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid managerialremuneration as per Section 197 read with Schedule V to the Companies Act 2013;

xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly paragraph 3(xii) is not applicable;

xiii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable and thedetails of the same have been disclosed in the financial statements as required by theapplicable accounting standards;

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year;

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(15) ofthe order is not applicable;

xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India 1934

FOR A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
Place:- Mumbai A. V. Jobanputra
Date:- 08/08/2019 PROPRIETOR
UDIN NO.: 19016352AAAABR6250 (MEMBERSHIP NO : 016352)

Annexure B

The Annexure B referred to in Para 2(f) - Report on other Regulatory requirements ofour Independent Auditor's Report to the Members of the Company on the Internal FinancialControls under clause (i) of subsection 3 of section 143 of the Companies Act 2013("the act") for the year ended 31st March 2019

We have audited the internal financial controls over financial reporting of KUNSTSTOFFEINDUSTRIES LIMITED ("the company") as of 31st March 2019 inconjunction with our audit of the financial statements of the company for the year endedon 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." 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 companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting based on our audit in accordance with the Guidance Noteon Audit of internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of the companyare being made only in accordance with authorisations of management and directors of thecompany; and (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 financial 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 materials 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 procedure may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312019 based on the internal controlover financial 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 A. V. Jobanputra & Co.
CHARTERED ACCOUNTANTS
Firm Registration No.: 104314W
Place:- Mumbai A. V. Jobanputra
Date:- 08/08/2019 PROPRIETOR
UDIN NO.: 19016352AAAABR6250 (MEMBERSHIP NO : 016352)

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