You are here » Home » Companies » Company Overview » Kush Industries Ltd

Kush Industries Ltd.

BSE: 514240 Sector: Industrials
NSE: SUZLONFIBR ISIN Code: INE979D01011
BSE 00:00 | 30 Aug Kush Industries Ltd
NSE 05:30 | 01 Jan Kush Industries Ltd
OPEN 1.00
PREVIOUS CLOSE 1.00
VOLUME 2
52-Week high 1.05
52-Week low 1.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.00
Sell Qty 515.00
OPEN 1.00
CLOSE 1.00
VOLUME 2
52-Week high 1.05
52-Week low 1.00
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.00
Sell Qty 515.00

Kush Industries Ltd. (SUZLONFIBR) - Auditors Report

Company auditors report

To

The Members of

KUSH INDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.)

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of KUSHINDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.) which comprise the Balancesheet as at 31st March2018Statement of Profit and Loss Statement of Changes in Equityand the Cash-flow Statement for the year then ended and a summary of SignificantAccounting Policies and Other Explanatory Information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("The Act") with respect to the preparationand presentation of these Standalone Ind AS Financial Statements that give a true and fairview of the Financial Position financial performance including other Comprehensiveincome Cash flows and changes in equity of the Company in accordance with the AccountingPrinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of The Act read with the Companies (Indian AccountingStandards) Rule 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safe guardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Ind AS Financial Statements that give atrue and fair view and are free from material misstatement whether due to Fraud or Error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing Standards and matters which are required to be included in theaudit report under the provisions of the Act and the rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the Standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers the internal financial control relevant tothe Company's preparation of the Standalone Ind AS financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS 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 of the state of affairs of theCompany as at 31st March 2018 its loss including other Comprehensive Incomethe changes in equity and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (‘the Order') issuedby the Central Government of India in terms of sub-section (11) of Section 143 of theCompanies Act 2013 and according to information and explanation provided to us we givein the Annexure - A a statement on the matters specified in the paragraph 3 and 4 of theOrder.

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

i. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

ii. 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;

iii. The Balance Sheet the Statement of Profit & Loss including OtherComprehensive Income Statement of Changes in Equity and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;

iv. In our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under section 133 of the Act read with Rules ofthe Companies (Accounts) Rules 2015 as amended;

v. On the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2018 from being appointed as a director in termsof section 164(2) of the Act;

vi. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourreport in Annexure – ‘B'.

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

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS financial statements – Refer Note 24 to theStandalone Ind AS financial statements;

ii. The company did not have any long term contracts including derivative contract forwhich there were any material foreseeable losses.

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

For SNK & Co.
Chartered Accountants
ICAI Firm Registration No.:109176W
Place : Surat Mihir Gandhi
Date : 30th May 2018 Partner
Membership No. 125394

Annexure A – Annexure Referred to in paragraph 5 of our report of even date underheading

"Report of the Other Legal and Regulatory Requirements"

Re : KUSH INDUSTRIES LIMITED (formerly known as SNS TEXTILES LTD.)

(i) (a) According to information and explanation given by the management the Companyhas maintained proper records showing full particulars including quantitative details andsituation of fixed assets.

(b) We are informed that all the fixed assets have been physically verified by themanagement in accordance with a phased programme of verification. The frequency isreasonable considering the size and nature of its business and no material discrepancieshave been noticed on such physical verification.

(c) The title deeds of immovable properties other than self-constructed immovableproperty (buildings) as disclosed in fixed assets to the Standalone Ind AS financialstatements are held in the name of the company except the following:

Nature of Property Total number of cases Name in the Lease / Sale Deed Gross Block as on 31-03-2018 Net Block as on 31-03-2018
( Rs in Lakh) ( Rs in Lakh)
Leasehold Land 03 Suzlon Fibres Ltd. Suzler Synthetics Pvt. Ltd. 34.41 33.77
Land 01 Suzlon Fibres Ltd.

The Company was formerly named as Suzlon Fibres Ltd. The name of the Company is howevernot changed in the title deeds as Kush Industries Ltd.

(ii) As explained to us the physical verification of inventories has been conducted atreasonable intervals by the management. No discrepancies were noticed on physicalverification.

(iii) According to the information and explanations given by the management theCompany has not granted any loans secured or unsecured to companies. Firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013and therefore the Clause 3(iii) of the Companies (Auditor's Report) Order 2016 is notapplicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has not advanced any loan or given any guarantee or provided any security or madeany investment covered under section 185 and 186 of the Act.

(v) The Company has not accepted any deposits as per the directive issued by theReserve Bank of India and as per the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under. Accordingly the clause3 (v) of the Companies (Auditor's Report) Order 2016 is not applicable to the company.

(vi) Maintenance of cost records as specified by the Central Government under subsection (1) of section 148 of the Companies act is not applicable to the company.Accordingly the clause 3(vi) of the Companies (Auditor's Report) Order 2016 is notapplicable to the company.

(vii) (a) Undisputed statutory dues including provident fund Goods and Service taxemployees' state insurance income-tax sales-tax wealth-tax service tax customs dutyexcise duty cess and other material statutory dues wherever applicable have generallybeen regularly deposited with the appropriate authorities.

According to the information and explanations given by the management no undisputedamounts payable in respect of provident fund income tax sales tax wealth tax servicetax duty of customs value added tax Goods and Services Tax cess and other materialstatutory dues wherever applicable were in arrears as at 31st March 2018 fora period of more than 6 months from the date they became payable.

(b) According to the records made available to us and the information and explanationsgiven by the management the disputed statutory dues on account of Incometax/Sales-tax/Wealth-tax/Service tax/Custom duty/excise duty/Goods and Services Tax/valueadded tax and cess that have not been deposited on account of matters pending beforeappropriate authorities are as follows:

Name of the Statute Nature of Dues Amount under Dispute ( Rs ) Period to which the amount relates Forum where dispute is pending Amount deposited against ( Rs )
Foreign Trade 1992 Custom Duty / Export Obligation Not yet determined 1997-98 Deputy Commissioner of Customs Raigad Maharashtra 2100000
Central Excise Act 1944 Excise Duty 3042620 Jul'95 to Feb'97 CESTAT Mumbai 680000
Income Tax Act 1961 Income Tax 5449019 A.Y. 1994-95 ITAT Ahmedabad 384530
Income Tax Act 1961 Income Tax 1864220 A.Y. 1996-97 ITAT Ahmedabad
Sales tax Act 1969 Sales Tax 3299845 2001-02 Joint Commissioner Gujarat Value Added Tax Dept.
Income Tax Act 1961 Income Tax 43611010 A.Y. 2007-08 ITAT Ahmedabad
Income Tax Act 1961 Income Tax 22483354 A.Y. 2007-08 Commissioner Appeals Surat

(viii) In our opinion and according to information and explanations given by themanagement the Company has neither borrowed funds from any financial institutions banksor government nor it has issued debentures till 31st March 2018.Consequently in our opinion the question of reporting on defaults in repayment of duesto financial institutions banks government and debenture holders does not arise.

(ix) According to information and explanation given to us the company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)or obtained term loans during the year.

(x) Based on our audit procedure as per our opinion and according to the informationand explanation given by the management no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the books and records of the Company we are of the opinion that theCompany has not paid any managerial remuneration during the year under audit andconsequently the requirements of clause 3(xi) of Companies (Auditor's Report) Order 2016is not applicable.

(xii) In our opinion and according to the information and explanations given by themanagement the Company is not a Nidhi company. Accordingly Clause 3(xii) of theCompanies (Auditor's Report) Order 2016 is not applicable.

(xiii) According to the information and explanations given by the management and basedon our examination of the records of the Company transactions with the related partiesare in compliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Ind AS financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations given by the management and basedon our examination of the records of the Company the Company has not made preferentialallotment and private placement of shares during the year. Consequently requirement ofclause 3(xiv) of the Companies (Auditor's Report) Order 2016 is not applicable.

(xv) According to the information and explanations given by the management and based onour examination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly Clause 3(xv) ofthe Companies (Auditor's Report) Order 2016 is not applicable.

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

For SNK & Co.
Chartered Accountants
ICAI Firm Registration No.:109176W
Place : Surat Mihir Gandhi
Date : 30th May 2018 Partner
Membership No. 125394