Mar 31, 2023
To The Members of KEI INDUSTRIES LIMITED
Report on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of KEI INDUSTRIES LIMITED ("the Companyâ), which comprise the Standalone Balance Sheet as at 31st March 2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone statement of Cash Flows, the Standalone Statement of Changes in Equity for the year then ended, notes to the financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the standalone financial statements).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, and its profit, total comprehensive income, its cash flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
S. No. |
Key Audit Matter |
Auditor''s Response |
1 |
Revenue - Performance Obligations The Company is in the business of manufacturing of various types of Cables, SS Wires and sells to customers both through institutional and dealer network globally. Sales contracts contain various performance obligations and other terms and the determination of when significant performance obligations have been met varies albeit a specific point in time can often be established. As a consequence, the Company has analysed its various sales contracts and concluded on the principles for deciding in which period or periods the Company''s sales transactions should be recognized as revenue. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Mapped and evaluated selected systems and processes for revenue recognition and tested a sample of key controls. ⢠Selecting a sample from each type of the contracts with the customers, and testing the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. ⢠Tested sample of sales transactions for compliance with the company''s accounting principles. ⢠Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements. |
2 |
Revenue - Variable Consideration Revenue is recognized in accordance with Ind AS 115, net of discounts, incentives, and rebates accrued by the Company''s customers based on sales. The company uses sales agreement terms & conditions and historical trends to estimate discounts. At the reporting date, the company estimates and accrues for discounts and rebates they consider as having been incurred but not yet paid. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Understanding the policies and procedures applied to revenue recognition including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. ⢠Carrying out substantive analytical procedures, analysing the actual performance of revenue and cost of sales related to discounts, incentives and rebates etc. ⢠Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration. ⢠Analysing and discussing with management significant contracts including contractual terms and conditions related to discounts, incentives and rebates used in the related estimates. ⢠Reviewing disclosures included in the notes to the accompanying financial statements. |
S. No. |
Key Audit Matter |
Auditor''s Response |
3 |
Revenue - Over the Period Revenue Recognition The Company is engaged in execution of Engineering, Procurement and Construction projects (EPC) for survey, supply of materials, design, erection, testing & commissioning on a turnkey basis. Revenue is recognized in accordance with Ind AS 115 and Performance obligations in such cases are satisfied over time and accordingly revenue is recognised over the time in such cases. Method used to recognise revenue is also a Key Audit Matter along with measuring progress towards complete satisfaction of performance obligations. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠We tested the relevant internal controls used to ensure the completeness, accuracy and timing of revenue recognised including controls over the degree of completion of EPC projects. ⢠We evaluated and analysed the significant judgements and estimates made by the management and also reviewed sample contracts with customers to assess whether the method of recognition of revenue is relevant and is consistent with the accounting policies of the company. ⢠Selecting a sample of contracts for each of the key scope in components and evaluated them along with supporting evidence to determine whether various elements of revenue recognition are assessed in accordance with the principles prescribed under Ind AS 115. ⢠Tested samples of un-invoiced revenue entries with reference to the reports that records the costs incurred. ⢠Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements. |
Information Other than the Standalone Financial Statements and Auditor''s Report thereon
obtained during the course of our audit or otherwise appears to be materially misstated.
The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexure to Board''s Report, but does not include the standalone financial statements and our auditor''s report thereon. The other information is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above, when it becomes available, and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge
When we read the other information, if we conclude, that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards prescribed under section 133 of the Act and other accounting principles
generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design 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 has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
⢠Conclude on the appropriateness of Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report that:
a. We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income) the Standalone Statement of Cash Flows and Standalone Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e. On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to standalone financial statements.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, as amended in our opinion and 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 31st March, 2023 on its financial position in its standalone financial statements -Refer Note No- 36 of standalone financial statements.
ii. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses during the year ended 31st March, 2023.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2023.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note No. 16(g) to the standalone financial statements, the interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
2. As required by the Companies (Auditor''s Report) Order, 2020 issued by the Central Government in terms of sub-section (11) of Section 143 of the Act ("the Order"), we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
3. In our opinion and as per information and explanations given to us, the managerial remuneration for the year ended 31st March 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 of the Act.
Chartered Accountants ICAI Firm Registration Number: 011573C
CA Pawan Kumar Agarwal Place of Signature: New Delhi Partner
Date: 02nd May, 2023 Membership Number: 092345 UDIN: 23092345BGSRSI6826
Mar 31, 2022
Report on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of KEI INDUSTRIES LIMITED ("the Companyâ), which comprise the Standalone Balance Sheet as at 31st March 2022, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone statement of Cash Flows, the Standalone Statement of Changes in Equity for the year then ended, notes to the financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the standalone financial statements).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2022, and its profit, total comprehensive income, its cash flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
S. No. |
Key Audit Matter |
Auditor''s Response |
1 |
Revenue - Performance Obligations The Company is in the business of manufacturing of various types of Cables, SS Wires and sells to customers both through institutional and dealer network globally. Sales contracts contain various performance obligations and other terms and the determination of when significant performance obligations have been met varies albeit a specific point in time can often be established. As a consequence, the Company has analysed its various sales contracts and concluded on the principles for deciding in which period or periods the Company''s sales transactions should be recognized as revenue. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Mapped and evaluated selected systems and processes for revenue recognition and tested a sample of key controls. ⢠Selecting a sample from each type of the contracts with the customers, and testing the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. ⢠Tested sample of sales transactions for compliance with the company''s accounting principles. ⢠Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements. |
2 |
Revenue - Variable Consideration Revenue is recognized in accordance with Ind AS 115, net of discounts, incentives, and rebates accrued by the Company''s customers based on sales. The company uses sales agreement terms & conditions and historical trends to estimate discounts. At the reporting date, the company estimates and accrues for discounts and rebates they consider as having been incurred but not yet paid. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠Understanding the policies and procedures applied to revenue recognition including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. ⢠Carrying out substantive analytical procedures, analysing the actual performance of revenue and cost of sales related to discounts, incentives and rebates etc. ⢠Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration. ⢠Analysing and discussing with management significant contracts including contractual terms and conditions related to discounts, incentives and rebates used in the related estimates. ⢠Reviewing disclosures included in the notes to the accompanying financial statements. |
S. No. |
Key Audit Matter |
Auditor''s Response |
|
3 |
Revenue - Over the Period Revenue Recognition The Company is engaged in execution of Engineering, Procurement and Construction projects (EPC) for survey, supply of materials, design, erection, testing & commissioning on a turnkey basis. Revenue is recognized in accordance with Ind AS 115 and Performance obligations in such cases are satisfied over time and accordingly revenue is recognised over the time in such cases. Method used to recognise revenue is also a Key Audit Matter along with measuring progress towards complete satisfaction of performance obligations. |
Audit Procedure Applied Our audit included but was not limited to the following procedures: ⢠We tested the relevant internal controls used to ensure the completeness, accuracy and timing of revenue recognised including controls over the degree of completion of EPC projects. ⢠We evaluated and analysed the significant judgements and estimates made by the management and also reviewed sample contracts with customers to assess whether the method of recognition of revenue is relevant and is consistent with the accounting policies of the company. |
|
⢠|
Selecting a sample of contracts for each of the key scope in components and evaluated them along with supporting evidence to determine whether various elements of revenue recognition are assessed in accordance with the principles prescribed under Ind AS 115. |
||
⢠|
Tested samples of un-invoiced revenue entries with reference to the reports that records the costs incurred. |
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⢠|
Read and assessed the disclosure made in the financial statements for assessing compliance with disclosure requirements. |
express any form of assurance conclusion thereon.
Information Other than the Standalone Financial Statements and Auditor''s Report thereon
The Company''s Board of Directors are responsible for the other information. The other information comprises the letter from the management, Director''s Report, Management Discussion and Analysis, Business Responsibility Report and Corporate Governance Report but does not include the standalone financial statements and our auditor''s report thereon.
The letter from the management, Director''s Report, Management Discussion and Analysis, Business Responsibility Report and Corporate Governance Report are expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above, when it becomes available, and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the letter from the management, Director''s Report, Management Discussion and Analysis, Business Responsibility Report and Corporate Governance Report, if we conclude, that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design 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 has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of management''s use of the going concern, basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, we report that:
a. We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income) the Standalone Statement of Cash Flows and Standalone Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e. On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014, as amended in our opinion and 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 31st March, 2022 on its financial position in its standalone financial statements -Refer Note No- 36 of standalone financial statements.
II. The Company did not have any longterm contracts including derivative
contracts for which there were any material foreseeable losses during the year ended 31st March 2022.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2022.
IV. (a) The Management has represented
that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
V. As stated in Note No. 16 (g) to the standalone financial statements. The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act.
2. As required by the Companies (Auditor''s Report) Order, 2020 issued by the Central Government in terms of subsection (11) of Section 143 of the Act ("the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
3. In our opinion and as per information and explanations given to us, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 of the Act.
Chartered Accountants ICAI Firm Registration Number: 011573C
CA Pawan Kumar Agarwal Place of Signature: New Delhi Partner
Date: 09th May, 2022 Membership Number: 092345
UDIN: 22092345AIRBQG5169
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of KEI Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. In conducting our audit, we have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material mis-statement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material mis-statement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
9. The comparative financial information of the Company for the year ended 31st March, 2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 10th May, 2017 and 21st May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
Our opinion on the standalone Ind AS financial statements is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by Section 143 (3) of the Act, based on our audit, we report that:
a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its standalone Ind AS financial statements - Refer Note No. 44;
ii. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses during the year ended 31st March, 2018.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2018.
11. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure A to the Independent Auditorâs Report
Referred to in paragraph 10 (f) of the Independent Auditorâs Report of even date to the members of KEI Industries Limited on the standalone Ind AS financial statements for the year ended 31st March, 2018.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of KEI Industries Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial 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 the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Annexure B to Independent Auditorâs Report
Referred to in paragraph 11 of the Independent Auditorâs Report of even date to the members of KEI Industries Limited on the Standalone Ind AS financial statements as of and for the year ended 31st March, 2018.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management during the year. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account. In our opinion, the frequency of verification is reasonable.
(c) The title deeds of immovable properties, as disclosed in Note 3 on fixed assets to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory (excluding stocks with third parties) has been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to Companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. There are two parties covered in the register maintained under Section 189 of the Act, to which Company has given security deposits as per contractual obligations. (Refer Note 7).
(a) In respect of the aforesaid deposits, the terms and conditions under which such deposits were granted are not prejudicial to the Companyâs interest.
(b) Since it is a security deposit no schedule for repayment of deposit is applicable and no interest was charged.
(c) In respect of the aforesaid deposit, there is no amount which is overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75 and 76 or any other relevant provisions of the Act and the Rules framed thereunder to the extent notified, with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the records of the Company and information and explanations given to us and the records of the Company examined by us, the Company has been regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, Investor education and protection fund, goods and service tax, sales tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of Income Tax, goods and service tax, service tax, value added tax/ sales tax, entry tax, customs duty and excise duty as at 31st March, 2018 which have not been deposited on account of a dispute are as follows:
Name of the Statute |
Nature of the Due |
Amount (Rs. In millions) |
Period to which the amount relates |
Forum where dispute is pending |
Sales/ Entry |
Central Sales Tax |
0.67 |
1999-2000 |
Tax Board |
Tax Act |
West Bengal Tax on Entry of Goods into Local Areas Act,2012 |
7.14 |
2013-14 to 2017-18 |
Honâble High Court |
Central Excise Duty |
Excise Duty |
7.75 |
2005-06, 2007-08 & 2008-09 |
CESTAT |
Excise Duty |
19.75 |
2010-11 |
Commissioner |
|
Finance Act |
Service Tax |
34.85 |
2011-12 to 2015-16 |
Commissioner (Appeals) |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any money by way of initial public offer, further public offer (including debt instruments). Term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported 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 the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any noncash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For PAWAN SHUBHAM & CO.
Chartered Accountants
Firm Registration Number: 011573C
CA Pawan Kumar Agarwal
Place of signature: New Delhi Partner
Date : 17th May, 2018 Membership Number:092345
Mar 31, 2017
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone financial statements of KEI Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone
Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone financial statements to give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these Standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report, to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representation received from the directors as on 31st March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March, 2017 on its financial position in its financial statements - Refer Note No 35.1 to 35.4.
ii. The Company did not have any longterm contracts including derivative contracts as at 31st March, 2017.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended on 31st March, 2017.
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealing in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the company- Refer Note No 36.
Annexure B to Independent Auditors'' Report
Referred to in paragraph 9 of the Independent Auditors'' Report of even date to the members of KEI Industries Limited on the Standalone financial statements as of and for the year ended 31st March, 2017.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management during the year. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account. In our opinion, the frequency of verification is reasonable.
(c) The title deeds of immovable properties, as disclosed in Note 11 on fixed assets to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory (excluding stocks with third parties) has been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. There are two parties covered in the register maintained under Section 189 of the Act, to which Company has given security deposits as per contractual obligations. (Refer Note 13).
(a) In respect of the aforesaid deposits, the terms and conditions under which such deposits were granted are not prejudicial to the Company''s interest.
(b) Since it is a security deposit no schedule for repayment of deposit is applicable and no interest was charged.
(c) In respect of the aforesaid deposit, there is no amount which is overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73, 74, 75 and 76 or any other relevant provisions of the Act and the Rules framed there under to the extent notified, with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the records of the Company and information and explanations given to us and the records of the Company examined by us, the Company has been regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, Investor education and protection fund, sales tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of Income Tax, Service Tax, Value Added Tax/ Sales Tax, Entry Tax, Customs Duty and Excise Duty as at 31st March, 2017 which have not been deposited on account of a dispute are as follows:
Name of the Statute |
Nature of the Due |
Amount (Rs. In Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act |
Income Tax |
0.87 |
2011-12 |
Income Tax Appellate Tribunal |
Income Tax |
0.32 |
2012-13 |
Income Tax Appellate Tribunal |
|
Sales/ Entry Tax Act |
Central Sales Tax |
0.42 |
1999-2000 |
Tax Board |
West Bengal Tax on Entry of Goods into Local Areas Act, 2012 |
6.72 |
2013-14 to 2016-17 |
Hon''ble High Court |
|
Central Excise Duty |
Excise Duty |
83.86 |
2010-11 & 2014-15 |
CESTAT |
Excise Duty |
1.98 |
2007-08 & 2008-09 |
Commissioner (Appeals) |
|
Finance Act |
Service Tax |
0.87 |
2014-15 |
Commissioner (Appeals) |
Service Tax |
31.70 |
Various years for 2009-10 to 2014-15 |
CESTAT |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments). Term loans have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported 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 the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For JAGDISH CHAND & CO.
Firm Registration Number: 000129N
Chartered Accountants
(PRAVEEN KUMAR JAIN)
Place of signature: New Delhi Partner
Date: 10th May, 2017 Membership No.: 085629
Mar 31, 2016
1. We have audited the accompanying Standalone financial statements of
KEI Industries Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2016, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these Standalone financial statements to
give a true and fair view of the financial position, financial
performance and cash fows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards Specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these Standalone
financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made there under including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
Specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
Standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2016, and its profit and its
cash fows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016'',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure B a statement on the
matters Specified in paragraphs 3 and 4 of the Order.
10. 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid Standalone financial statements
comply with the Accounting Standards Specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representation received from the directors
as on 31st March, 2016, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2016 from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and belief
and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations as at
31st March, 2016 on its financial position in its financial statements Â
Refer Note No. 35.1 to 35.4
ii. The Company did not have any long- term contracts including
derivative contracts as at 31st March, 2016
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended on 31st March, 2016
has given security deposits as per contractual obligations. (Refer Note
13)
(a) In respect of the aforesaid deposits, the terms and conditions
under which such deposits were granted are not prejudicial to the
Company''s interest.
(b) Since it is a security deposit no schedule for repayment of deposit
is applicable and no interest was charged.
(c) In respect of the aforesaid deposit, there is no amount which is
overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of Section
185 and 186 of the Companies Act, 2013 in respect of the loans and
investments made, and guarantees and security provided by it.
v. In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73, 74, 75 and 76 or any other relevant provisions of the Act and the
Rules framed there under to the extent notified, with regard to the
deposits accepted from the public. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
vi. Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as Specified under Section
148(1) of the Act in respect of its products. We have broadly reviewed
the same, and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
vii. (a) According to the records of the Company and information and
explanations given to us and the records of the Company examined by us,
the Company has been regular in depositing the undisputed statutory
dues including provident fund, employees state insurance, income tax,
Investor education and protection fund, sales tax, service tax, customs
duty Annexure B to Independent Auditors'' Report Referred to in
paragraph 9 of the Independent Auditors'' Report of even date to the
members of KEI Industries Limited on the Standalone financial
statements as of and for the year ended 31st March, 2016
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
books of account. In our opinion, the frequency of verification is
reasonable.
(c) The title deeds of immovable properties, as disclosed in Note 11 on
fixed assets to the financial statements, are held in the name of the
Company.
ii. The physical verification of inventory (excluding stocks with third
parties) have been conducted at reasonable intervals by the Management
during the year. In respect of inventory lying with third parties,
these have substantially been confirmed by them. The discrepancies
noticed on physical verification of inventory as compared to book
records were not material.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. There
are two parties covered in the register maintained under Section 189 of
the Act, to which Company excise duty, cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income tax, service tax, value added tax/ sales tax, entry tax, customs
duty and excise duty as at 31st March, 2016 which have not been
deposited on account of a dispute are as follows:
Amount Period to which
Name of Nature of the Due (Rs, In the amount
the Statute Millions) relates
Income Tax
Income Tax 0.87 2011-12
Act
Income Tax 0.32 2012-13
Sales/
Entry Central
Sales Tax 0.42 1999-2000
Tax Act
Central Sales Tax 0.43 2011-12
2012-13
Value added Tax 1.84 2011-12
West Bengal Tax on
Entry of 4.22 2013-14 to 2015-16
Goods into Local Areas
Act,2012
Madhya Pradesh
on Entry of
0.56 2011-12
Goods into Local
Areas Act,1976
Central Various years for
Excise Duty 330.92
Excise Duty 2005-06 to 2014-15
Excise Duty 1.94 2005-06 & 2014-15
Finance Act Service Tax 7.51 2005-06 & 2006-07
Various years
Service Tax 31.70
2009-10 to 2014-15
Name of the
Statute Forum where dispute is pending
Income Tax
Act Income Tax Appellate tribunal
Appeal before honble Supreme Court
Commissioner
Sales Tax act Tax Board
Additional Commissioner of Commercial tax
Honble High Court
Additional Commercial tax
Central Excise duty CESTAT
Commission
Finance Act Commissioner
CESTAT
viii. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of loans or borrowings to any financial institution or
bank or Government or dues to debenture holders as at the balance sheet
date.
ix. The Company has not raised any moneys by way of initial public
offer, further public offer (including debt instruments). Term loans
have been applied for the purposes for which they were obtained.
x. During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
by the Company or on the Company by its officers or employees, noticed
or reported 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 the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014
are not applicable to it, the provisions of Clause 3(xii) of the Order
are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in
compliance with the provisions of Sections 177 and 188 of the Act. The
details of such related party transactions have been disclosed in the
financial statements as required under Accounting Standard (AS) 18,
Related Party Disclosures Specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year under review. Accordingly, the provisions of Clause 3(xiv) of
the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its
directors or persons connected with him. Accordingly, the provisions of
Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934. Accordingly, the provisions of
Clause 3(xvi) of the Order are not applicable to the Company.
For JAGDISH CHAND & CO.
Firm Registration Number: 000129N
Chartered Accountants
(PRAVEEN KUMAR JAIN)
Partner
Membership No.: 085629
Place of signature: New Delhi
Mar 31, 2015
1. We have audited the accompanying financial statements of KEI
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements to give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made thereunder including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that we
comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8 In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement ofProfit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representation received from the directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and belief
and according to the information and explanations given to us:
i The Company has disclosed the impact of pending litigations as at
31st March, 2015 on its financial position in its financial statements
- Refer Note No. 34.1 & 34.4;
ii. The Company did not have any long-term contracts including
derivative contracts as at 31st March, 2015
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended on 31st March, 2015
Annexure to Independent Auditors' Report Referred to in paragraph 9 of
the Independent Auditors' Report of even date to the members of KEI
Industries Limited on the financial statements as of and for the year
ended 31st March, 2015
i. (a) The Company is maintaining proper records
showing full particulars, including quantitative details and situation,
of fixed assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year. The discrepancies noticed on such
verification were not material and have been properly dealt with in the
books of account. In our opinion, the frequency of verification is
reasonable.
ii. (a) The inventory has been physically verified by
the Management during the year. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. (a) There is one party covered in the register
maintained under Section 189 of the Act, to which Company has given
deposit as per contractual obligations. Since it is a security deposit
no principal amount was due and no interest was charged. (Refer Note
13.1)
(b) In respect of the aforesaid deposit, there is no overdue amount.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
73, 74, 75 and 76 or any other relevant provisions of the Act and the
Rules framed there under to the extent notified, with regard to the
deposits accepted from the public. According to the information and
explanations given to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the aforesaid
deposits.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under sub-section(1) of Section 148 of
the Act, and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete. vii. (a) According to
the records of the Company and information and explanations given to us
and the records of the Company examined by us, the Company has been
generally regular in depositing the undisputed statutory dues including
provident fund, employees state insurance, income tax, Investor
education and protection fund, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities, We are informed
there are no undisputed statutory dues as of March 31, 2015 outstanding
for a period of more than six months from the date they become payable.
(b) There are no dues in respect of income tax, sales tax, wealth tax,
service tax, customs duty, excise duty and cess that have not been
deposited with appropriate authorities on account of any dispute other
than those mentioned below :-
Amount Period to
Name of the Nature of (Rs. in which the Forum where
Statute the Due Millions) amount dispute is
relates pending
Income Tax Income Tax 0.87 2011-12 Commissioner
Act (Appeals)
Income Tax 8.65 2007-08 Appeal to be
filed before
Supreme Court
Sales/ Central 0.72 1999-2000 Tax Board
Entry Sales Tax
Tax Act Central 0.43 2011-12 Additional
Sales Tax and 2012 Commissioner
-13 of Commercial
Tax
Value Added 1.84 2011-12 Additional
Tax Commissioner
of Commercial
Tax
West Bengal 1.30 2013-14 Hon'ble High
Court on Entry of
Tax Goods into
Local Areas
Act, 2012
Madhya 0.56 2011-12 Additional
Pradesh Commissioner
on Entry of Commercial
of Goods Tax
into Local
Areas
Act, 1976
Central Excise Duty 64.77 Various
Excise years
Duty for CESTAT
2005-06 to
2011-12
Customs Custom Duty 395.72 Various
Act years Commissioner
for (Appeals)
2005-06
to 2009
-10
Finance Service Tax 7.5 1 2005-06 & Commissioner
Act 2006-07 (Adjudication)
Service Tax 1.30 2008-09 CESTAT
(c) The amounts required to be transferred to the Investor Education
and Protection Fund have been transferred within the stipulated time in
accordance with the provisions of the Act, and the rules made
thereunder.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
x. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
xi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied, on an overall basis, for
the purposes for which they were obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For JAGDISH CHAND & CO.
Firm Registration Number: 000129N
Chartered Accountants
(PRAVEEN KUMAR JAIN)
Place of Signature: New Delhi Partner
Date: 28th May, 2015 Membership No. 085629
Mar 31, 2014
1. We have audited the accompanying financial statements of KEI
INDUSTRIES LIMITED (the "Company"), which comprise the Balance Sheet as
at 31st March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Managment is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of ''the Companies Act, 1956 of India (the "Act")
read with the General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
entity''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act 2013;
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph ''7'' of the Independent Auditors'' Report to the
Members of KEI Industries Limited on the financial statements for the
year ended 31st March, 2014
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. In accordance with this programme, a
portion of the fixed assets were physically verified by the management
during the year. The discrepancies noticed on such verification between
the physical balances and the fixed assets records were not material
and have been properly dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) The Company has not granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Therefore, the provisions
of clause 4(iii) [(b),(c), (d)]of the said Order are not applicable to
the Company.
(b) The company has taken deposits from nine parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 336.00 Lacs and the year
end balance of
deposits taken from such parties was Rs. 143.00 Lacs.
(c) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(d) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventories, fixed assets and with regard to the
sale of goods and services during the year. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across, nor have been informed of, any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) (a) According to the information and explanations given to us,
during the year, there were no transactions that need to be entered
into the register maintained under Section 301 of the Companies Act
1956.
(b) In our opinion, and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements exceeding the value of Rupees Five Lacs in
respect of any party during the year.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provision of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from the public. As per the information and
explanations given to us, no order on the Company under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to information and explanations given to us and the
records of the Company examined by us, the Company has been regularly
depositing the undisputed statutory dues including provident fund,
employees state insurance, income tax, Investor Education and
Protection Fund, sales
tax, wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it with the appropriate
authorities. We are informed that there are no undisputed statutory
dues as at 31st March, 2014 outstanding for a period of more than six
months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of disputed dues
on account of income tax, sales tax, excise duty, service tax and cess
matters that have not been deposited as at 31st March, 2014 by the
Company on account of a dispute are as follows :-
Amount
Name of the Statute Nature of the Due (in Lacs)
Income Tax Act Income Tax 4.95
Sales/Entry Central Sales Tax 7.17
Tax Act Central Sales Tax 6.64
Value Added Tax 200.68
The Rajasthan Entry 43.48
Tax- Goods Act 2003
West Bengal Tax on 8.30
Entry of Goods
into Local Areas
Act, 2012
Central Excise Excise Duty 654.26
Duty
Excise Duty 107.83
Finance Act Service Tax 75.10
Service Tax 13.01
Name of the Period to Which the Forum where dispute is pending
Statute Amount relates
Income Tax Act 2010-11 Commissioner (Appeals)
Sales/Entry 1999-2000 Tax Board, Rajasthan
Tax Act Various years for Commercial Tax, Alwar,
2006-07 t o Rajasthan (Appellate Authority)
2011-12
Various years for Commercial Tax, Alwar
2006-07 to 2011-12 Rajasthan (Appellate Authority)
Various years for Deputy Commissioner
2007-08 to 2009-10 of Sales Tax
2013-14 Hon''ble High Court at Calcutta
Central Excise Various years for CESTAT
Duty 2005-06 to 2011-12
Various years for Commissioner (Appeals)
2007-08 to 2010-11
Finance Act 2005-06 & 2006-07 Commissioner (Adjudication)
2008-09 CESTAT
(x) The Company does not have accumulated losses as at the year ended
31st March, 2014. Further, the Company has not incurred any cash losses
during the year ended 31st March, 2014 and in the immediately preceding
financial year ended 31st March, 2013.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks or debenture holders during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of
shares, debentures and other securities, paragraph 4(xii) of the Order
is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has given guarantees for loan taken by others from
banks. According to the information and explanations given to us, we
are of the opinion that
the terms and conditions thereof are not prima facie prejudicial to the
interest of the company.
(xvi) We are informed that the Company had obtained term loans during
the year and term loans were applied, on an overall basis, for the
purposes for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that during the year short term funds have not been used to finance
long term investments.
(xviii) During the year, the company has allotted equity shares on
preferential basis to one company covered in the Register maintained
under section 301 of the companies Act, 1956. The price at which, these
equity shares have been issued has been determined as per the
Securities and Exchange Board of India (Issue of Capital & Disclosures
Requirements) Regulations, 2009, which in our opinion, is not
prejudicial to the interest of the company.
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding
as at the beginning of the year and at the year end. Accordingly, the
provisions of Clause 4(xix) of the Order are not applicable to the
Company.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of Clause 4(xx) of the order are not
applicable.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For JAGDISH CHAND & CO.
Firm Registration
Number: 000129N
Chartered Accountant
(PRAVEEN KUMAR JAIN)
Partner
M. No. 085629
Place of Signing: New Delhi
Dated : 15th May, 2014
Mar 31, 2013
1. We have audited the accompanying financial statements of KEI
INDUSTRIES LIMITED (the "Company"), which comprise the Balance
Sheet as at 31st March, 2013, and the Statement ofProfit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Managment is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of ''the Companies Act, 1956 of India (the
"Act"). This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute ofChartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Act.
ANNEXURETO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph ''7'' of the Independent Auditors'' Report to the
Members of KEI Industries Limited on the financial statements for the
year ended 31st March, 2013.
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. In accordance with this programme, a
portion of the fixed assets were physically verified by the management
during the year. The discrepancies noticed on such verification between
the physical balances and the fixed assets records were not material
and have been properly dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) There is one party covered in the register maintained under
Section 301 of the Companies Act, 1956 to which Company has given
deposit as per contractual obligations. The maximum amount involved
during the year was Rs. 31.92 Lacs and the year end balance of deposit
granted to such party was Rs. Nil. (Refer Note No 18.1)
(b) In our opinion, terms and conditions on which deposit has been
given to such party listed in the register maintained under Section 301
of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company. No interest was charged from the party, since
this is deposit against premises taken on rent.
(c) No principal amount was due for repayment, no interest was charged
from the party, since this was deposit against premises taken on rent.
(Refer Note No 18.1)
(d) In respect of aforesaid deposit, there is no overdue amount more
than Rupees one Lac.
(e) The company has taken deposits from eight parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 325.60 Lacs and the
year end balance of deposits taken from such parties was Rs. 46.00
Lacs.
(f) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventories, fixed assets and with regard to the
sale of goods and services during the year. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across, nor have been informed of, any
continuing failure to correct major weaknesses in aforesaid internal
control system.
(v) (a) According to the information and explanations given to us,
during the year, there were no transactions that need to be entered
into the register maintained under Section 301 of the Companies Act
1956.
(b) In our opinion, and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements exceeding the value of Rupees Five Lacs in
respect of any party during the year.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provision of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from the public. As per the information and
explanations given to us, no order on the Company under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company in respect of the aforesaid deposits.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to information and explanations given to us and the
records of the Company examined by us, the Company has been regularly
depositing the undisputed statutory dues including provident fund,
employees state insurance, income tax, Investor Education and
Protection Fund, sales tax, wealth tax, service tax, customs duty,
excise duty, cess and other material statutory dues applicable to it
with the appropriate authorities. We are informed that there are no
undisputed statutory dues as at 31st March, 2013 outstanding for a
period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of disputed dues
on account of income tax, sales tax, excise duty, service tax and cess
matters that have not been deposited as at 31st March, 2013 by the
Company on account of a dispute are as follows:
Amount
Name of the Statute Nature of the Due Rs. in Lacs
Sales/ Central Sales Tax 7.17
Entry Tax Act
The Rajasthan Entry Tax - 43.48
Goods Act, 2003
Central Excise Duty Excise Duty 654.26
Excise Duty 107.83
Finance Act Service Tax 75.10
Service Tax 13.01
Name of the Statute Period to which the Forum where dispute is
pending
amount relates
Sales/Entry Tax Act 1999-2000 Tax Board , Rajasthan
Various years Deputy Commissioner of
Sales Tax
for 2007-08 to
2009-10
Central Excise Duty Various years CESTAT
for 2005-06 to
2011-12
Various years Commissioner (Appeals)
for 2007-08 to
2010-11
Finance Act 2005-06 Commissioner (Adjudication)
& 2006-07
2008-09 CESTAT
(x) The Company does not have accumulated losses as at the year ended
31st March, 2013. Further, the Company has not incurred any cash losses
during the year ended 31st March, 2013 and in the immediately preceding
financial year ended 31st March, 2012.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks or debenture holders during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has given guarantees for loan taken by others from
banks. According to the information and explanations given to us, we
are of the opinion that the terms and conditions thereof are not prima
facie prejudicial to the interest of the company.
(xvi) We are informed that the Company had obtained term loans during
the year and term loans were applied, on an overall basis, for the
purposes for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that during the year short term funds have not been used to finance
long term investments.
(xviii) During the year, the company has allotted equity shares on
preferential basis to two companies and an Individual covered in the
Register maintained under Section 301 of the Companies Act, 1956
consequent upon conversion ofwarrants. The price at which, these equity
shares have been issued has been determined as per the Securities and
Exchange Board of India (Disclosure and Investor Protection) Guidelines
2000, which in our opinion, is not prejudicial to the interest of the
company.
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding as at the beginning of the
year and at the year end. Accordingly, the provisions of Clause 4(xix)
of the Order are not applicable to the Company.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of Clause 4(xx) of the order are not
applicable.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For JAGDISH CHAND & CO.
Firm Registration Number: 000129N
Chartered Accountants
Place : New Delhi (PRAVEEN KUMAR JAIN)
Dated : 22.05.2013 Partner
M. No. 085629
Mar 31, 2012
1. We have audited the attached Balance Sheet of KEI INDUSTRIES
LIMITED as at 31st March, 2012 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
gener-ally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of 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 the company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 and the rules framed there under;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii. in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For JAGDISH CHAND & CO.
Chartered Accountants
Place : New Delhi (PRAVEEN KUMAR JAIN)
Dated : 29th May, 2012 Partner
M. No. 85629
Firm Registration Number: 000129N
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph '3' of the Auditors' Report to
the Members of KEI Industries Ltd on the accounts for the year ended
31st March, 2012
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. In accordance with this programme,
some of the fixed assets were physically verified by the management
during the year. The discrepancies noticed on such verification between
the physical balances and the fixed assets records were not material
and have been properly dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(ii) (a) During the year, the inventories have been
physically verified by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) There is one party covered in the register maintained under
Section 301 of the Companies Act, 1956 to which Company has given
deposit as per contractual obligations. The maximum amount involved
during the year was Rs. 60.00 Lacs and the yearend balance of deposit
granted to such party was Rs. 31.92 Lacs. (Refer Note No 18.1).
(b) In our opinion, terms and conditions on which deposit has been
given to such party listed in the register maintained under Section 301
of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company. No interest was charged from the party, since
this is deposit against premises taken on rent.
(c) No principal amount was due for repayment, no interest was charged
from the party, since this was deposit against premises taken on rent.
(Refer Note No 18.1).
(d) There is no overdue amount of deposit granted to Companies, firm or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(e) The company has taken deposits from five parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 81.61 Lacs and the year
end balance of deposits taken from such parties was Rs. 75.60 Lacs.
(f) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventories, fixed assets and with regard to the
sale of goods and services during the year. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in internal control
system.
(v) According to the information and explanations given to us, during
the year, there were no transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, paragraph
(V) (a) and (b) of the Order are not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provision of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from the public. As per the information and
explanations given to us, no order on the Company under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the records of the Company and information and
explanations given to us and the records of the Company examined by us,
the Company has been regularly depositing the undisputed statutory dues
including provident fund, employees state insurance, income tax,
Investor Education and Protection Fund, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities.
We are informed that there are no undisputed statutory dues as of 31st
March, 2012 outstanding for a period of more than six months from the
date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
customs duty, wealth tax & cess which have not been deposited. The
particulars of disputed dues on account of income tax, fringe benefit
tax, sales tax, excise duty and service tax matters that have not been
deposited by the Company are as follows:-
Name of the
Statute Nature of the Due Amount Period to
which the Forum where
dispute
in Lacs amount
relates is pending
Sales/
Entry Value Added Tax 1.54 2006-07 VAT Officer
Tax Act The Rajasthan
Entry Tax 43.48 Various
years for Deputy
Commissioner
of Sales
- Goods Act,
2003 2007-08 to
2009-10 Tax
Central
Excise Excise Duty 534.89 Various
years for CESTAT
Duty 2005-06 to
2007-08
Excise Duty 71.37 Various
years for Commissioner
(Appeals)
2007-08 to
2009-10
Finance
Act Service Tax 75.10 2005-06 &
2006-07 Commissioner
(Adjudication)
Service Tax 0.62 Various
years for Commissioner
(Appeals)
2005-06 to
2008-09
Service Tax 13.44 2008-09 CESTAT
(x) The Company does not have accumulated losses as at the year ended
31st March, 2012. Further, the Company has not incurred any cash losses
during the year ended 31st March, 2012 and in the immediately preceding
financial year ended 31st March, 2011.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks or debenture holders during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has given guarantees for loan taken by others from
banks. According to the information and explanations given to us, we
are of the opinion that the terms and conditions thereof are not prima
facie prejudicial to the interest of the company.
(xvi) We are informed that the Company had obtained term loans during
the year and term loans were applied for the purposes for which the
loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that during the year short term funds have not been used to finance
long term investments.
(xviii) According to the information and explanation given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the registered maintained under Section 301 of
the 'Act' during the year.
(xix) The Company has not issued any secured debentures during the
year.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of Clause 4(xx) of the order are not
applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the year.
For JAGDISH CHAND & CO.
Chartered Accountants
Place : New Delhi (PRAVEEN KUMAR JAIN)
Dated : 29th May, 2012 Partner
M. No. 85629
Firm Registration Number: 000129N
Mar 31, 2011
1. We have audited the attached Balance Sheet of KEI INDUSTRIES
LIMITED as at 31st March, 2011 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters speci- fied in paragraphs 4 and 5 of the said
order.
4. Without qualifying our opinion, we draw attention to, Note 3 of
schedule "VÃ to the financial statements regarding non provision of
proportionate premium on redemption of US $ 16.60 Million 1% foreign
currency convertible bonds amounting to Rs. 2852.84 Lacs. The same has
been disclosed as a contingent liability. Management has represented,
that the redemption premium will be offset against the securities
premium account.
5. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of 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 the company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 and the rules framed there under;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2011 from being
appointed as a director in terms of clause (g) of sub- section (1) of
Section 274 of the Companies Act, 1956;
f ) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph '3' of the Auditors' Report to the
Members of KEI Industries Ltd on the accounts for the year ended 31st
March, 2011
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. In accordance with this programme, some
of the fixed assets were physically verified by the management during
the year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) There is one party covered in the register maintained under
Section 301 of the Companies Act, 1956 to which Company has given
deposit as per contractual obligations. The maximum amount involved
during the year was Rs. 60.00 Lacs and the year end balance of deposit
granted to such party was Rs. 60.00 Lacs. (Refer Note No 20(a) & (b) of
Schedule "VÃ.)
(b) In our opinion, terms and conditions on which deposit has been
given to such party listed in the register maintained under Section 301
of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company. No interest was charged from the party, since
this is deposit against premises taken on rent.
(c) No principal amount was due for repayment, no interest was charged
from the party, since this was deposit against premises taken on rent.
(Refer Note No 20(a) & (b) of Schedule "VÃ).
(d) There is no overdue amount of deposit granted to Companies, firm or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(e) The company has taken deposits from five parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 84.50 Lacs and the year
end balance of deposits taken from such parties was Rs. 80.60 Lacs.
f ) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventories, fixed assets and with regard to the
sale of goods and services during the year. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in internal control
system.
(v) According to the information and explanations given to us, during
the year, there were no transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, paragraph (V) (a) and (b) of the Order are not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provision of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 with regard to
the deposits accepted from the public. As per the information and
explanations given to us, no order on the Company under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the records of the Company and information and
explanations given to us and the records of the Company examined by us,
the Company has been regularly depositing the undisputed statutory dues
including provident fund, employees state insurance, income tax,
Investor Education and Protection Fund, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities. We are informed that
there are no undisputed statutory dues as of 31st March, 2011
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
customs duty, wealth tax & cess which have not been deposited. The
particulars of disputed dues on account of income tax, fringe benefit
tax, sales tax, excise duty and service tax matters that have not been
deposited by the Company are as follows :-
Period to
Name of the
Statute Nature of the Due Rs. in
Lacs which the Forum where
dispute is pending
amount
relates
Sales/Entry
Tax Act Local Sales Tax 3.07 1988-89 VAT Officer
Local Sales Tax 3.75 1987-88 VAT Officer
Central Sales Tax 0.68 1988-89 VAT Officer
Central Sales Tax 1.00 1987-88 VAT Officer
Value Added Tax 1.38 2007-08 VAT Officer
The Rajasthan Entry
Tax - Goods Act,
2003 10.16 2007-08 Deputy Commissioner
of Sales Tax
The Rajasthan Entry
Tax - Goods Act,
2003 18.74 2008-09 Deputy Commissioner
of Sales Tax
The Rajasthan Entry
Tax - Goods Act,
2003 14.58 2009-10 Deputy Commissioner
of Sales Tax
Central
Excise Act Excise Duty 178.25 2006-07 CESTAT
Excise Duty 32.26 2005-06 CESTAT
Excise Duty 192.40 2007-08 CESTAT
Excise Duty 24.82 2008-09 Commissioner
(appeals)
Excise Duty 131.98 2007-08 CESTAT
Excise duty 12.39 2007-08 Commissioner
(appeals)
Excise duty 4.14 2007-08 Commissioner
(appeals)
Excise duty 11.29 2008-09 Commissioner
(appeals)
Excise duty 8.58 2008-09 Commissioner
(appeals)
Excise duty 22.15 2009-10 Commissioner
(appeals)
(x) The Company does not have accumulated losses as at the year ended
31st March, 2011. Further, the Company has not incurred any cash losses
during the year ended 31st March, 2011 and in the immediately preceding
financial year ended 31st March, 2010.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks or debenture holders during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) The Company has given guarantees for loan taken by others from
banks. According to the information and explanations given to us, we
are of the opinion that the terms and conditions thereof are not prima
facie prejudicial to the interest of the company.
(xvi) We are informed that the Company had obtained term loans during
the year and term loans were applied for the purposes for which the
loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that during the year short term funds have not been used to finance
long term investments.
(xviii) During the year, the company has allotted equity shares on
preferential basis to a company covered in the Register maintained
under Section 301 of the Companies Act, 1956, consequent upon
conversion of warrants. The price at which, these equity shares have
been issued has been determined as per the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements)
Regulations 2009, which in our opinion , is not prejudicial to the
interest of the company.
(xix) The Company has not issued any secured debentures during the
year.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of Clause 4(xx) of the order are not
applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the year.
For JAGDISH CHAND & CO.
Chartered Accountants
Place : New Delhi (PRAVEEN KUMAR JAIN)
Dated:21st May, 2011 Partner
M. No. 85629
Firm Registration Number: 000129N
Mar 31, 2010
1. We have audited the attached Balance Sheet of KEI INDUSTRIES
LIMITED as at 31st March, 2010 and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to our comments in the Annexure referred to in Paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of 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 the company so far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 and the rules framed there under;
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
f ) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii. in the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
iii.in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report to the
Members of KEI Industries Ltd on the accounts for the year ended
March 31, 2010
(i) (a) The Company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the Company has a programme of physically
verifying all its fixed assets over a period of three years, which in
our opinion is reasonable having regard to the size of the Company and
the nature of its fixed assets. In accordance with this programme, some
of the fixed assets were physically verified by the management during
the year. The discrepancies noticed on such verification between the
physical balances and the fixed assets records were not material and
have been properly dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of the fixed assets has not been
disposed off by the Company during the year.
(ii) (a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) There is one party covered in the register maintained under
Section 301 of the Companies Act, 1956 to which Company has given
deposit as per contractual obligations. The maximum amount involved
during the year was Rs.60,00,000 /- and the year end balance of deposit
granted to such party was Rs. 60,00,000/-. (Refer Note No 22(a) & (b)
of Schedule "V".)
(b) In our opinion, terms and conditions on which deposits have been
given to such party listed in the register maintained under Section 301
of Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company. No interest was charged
from the party, since these are deposits against premises taken on
rent.
(c) No principal amount was due for repayment, no interest was charged
from the party, since these were deposits against premises taken on
rent. (Refer Note No 22(a) & (b) of Schedule ÃVÃ).
(d) There is no overdue amount of deposit granted to Companies, firm or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(e) The company has taken deposits from four parties covered in
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs 41,60,768/ - and the
year end balance of deposits taken from such parties was
Rs.40,60,000/-.
f ) In our opinion, the rate of interest where applicable and other
terms and conditions on which deposits have been taken from Companies,
firms or other parties listed in the register maintained under Section
301 of Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
g) The Company is regular in repaying the principal amounts as
stipulated and also in the payment of interest, where applicable, in
case of deposits taken from Companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems, commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventories, fixed assets and with regard to the
sale of goods and services during the year. Further, on the basis of
our examination and according to the information and explanations given
to us, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in internal control
system.
(v) According to the information and explanations given to us, during
the year, there were no transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, paragraph (V) (a) and (b) of the Order are not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provision of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. As per the information and
explanations given to us, no order on the Company under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and are of the opinion that, prime facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the records of the Company and information and
explanations given to us and the records of the Company examined by us,
the Company has been regularly depositing the undisputed statutory dues
including provident fund, employees state insurance, income tax,
Investor Education and Protection Fund, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
applicable to it with the appropriate authorities. We are informed
there are no undisputed statutory dues as of March 31, 2010 outstanding
for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no disputed dues of
customs duty, wealth tax & cess which have not been deposited. The
particulars of disputed dues on account of income tax, fringe benefit
tax, sales tax, excise duty and service tax matters that have not been
deposited by the Company are as follows :-
Name of
the Statute Nature of the Due Amount
Rs.
Sales Tax Act Local Sales Tax 3,06,979
Local Sales Tax 3,74,862
Central Sales Tax 67,995
Central Sales Tax 1,00,084
Central Sales Tax 7,17,205/-
Value Added Tax 1,37,862/-
Central Excise Act Excise Duty 1,78,24,799/-
Excise Duty 32,26,349/-
Excise Duty 1,92,39,496/-
Excise Duty 24,82,163/-
Excise Duty 1,31,98,105/-
Excise duty 12,38,912/-
Excise duty 413,708/-
Excise duty 9,202/-
Excise duty 858,210/-
Finance Act Service Tax 1,91,860/-
Service Tax 3,52,711/-
Service Tax 3,62,784/-
Name of
the Statute Period to
which the Forum where dispute is pending
amount
relates
Sales Tax Act 1988-89 Deputy Commissioner of Sales Tax
1987-88 Deputy Commissioner of Sales Tax
1988-89 Deputy Commissioner of Sales Tax
1987-88 Deputy Commissioner of Sales Tax
1999-00 Deputy Commissioner of Sales Tax
2007-08 Deputy Commissioner of Sales Tax
Central Excise Act 2006-07 CESTAT
2005-06 CESTAT
2007-08 CESTAT
2008-09 Commissioner (appeals)
2007-08 CESTAT
2007-08 Commissioner (appeals)
2007-08 Commissioner (appeals)
2008-09 Commissioner (appeals)
2008-09 Commissioner (appeals)
Finance Act 2008-09 Commissioner (appeals)
2008-09 Commissioner (appeals)
2008-09 Commissioner (appeals)
(x) The Company does not have accumulated losses as at the year ended
March 31, 2010. Further, the Company has not incurred any cash losses
during the year ended March 31, 2010 and in the immediately preceding
financial year ended March 31, 2009.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks or debenture holders during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) We are informed that during the period, the Company has not given
any guarantee during the year for loans taken by others from banks or
financial institutions.
(xvi) We are informed that the Company had obtained term loans during
the year and term loans were applied for the purposes for which the
loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that during the year short term funds have not been used to finance
long term investments.
(xviii) During the year, the company has allotted equity shares on
preferential basis to a company covered in the Register maintained
under Section 301 of the Companies Act, 1956 consequent upon conversion
of warrants. The price at which, these equity shares have been issued
has been determined as per the Securities and Exchange Board of India
(Disclosure and Investor Protection) Guidelines 2000, which in our
opinion , is not prejudicial to the interest of the company.
(xix) The Company has not issued any secured debentures during the
year.
(xx) The Company has not raised any money by a public issue during the
year. Accordingly, the provisions of Clause 4(xx) of the order are not
applicable.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the year.
For JAGDISH CHAND & CO.
Chartered Accountants
Place : New Delhi (PRAVEEN KUMAR JAIN)
Dated :27th May, 2010 Partner
M. No. 85629
Firm Registration Number: 000129N