1. We have audited the accompanying financial statements of Krypton
Industries Limited (referred to as "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 presentation 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 Principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Account) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of 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 judgements 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.
Auditors' 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, 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 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 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 the 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 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, 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 (herein
referred to as "the Order") issued by the Central Government of India
in terms of sub-section 11 of section 143 of the Act, and on the basis
of such checking 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 appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flows, 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 Companies Act,
2013 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 are disqualified as on March 31st, 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 information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations as on
March 31, 2015 on its financial position in its financial statements.
ii) The Company has made provision as at March 31, 2015, as required
under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative
contracts.
iii) There has been no delay in transferring amounts, which was
required to be transferred, to the Investor Education and Protection
Fund by the Company during the year ended March 31, 2015.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 9 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As per Company's policy, verification of fixed assets is being
conducted in a phased programme by the management designed to cover all
assets over a period of five years, which in our opinion is reasonable
having regard to the size of the Company and the nature of assets. The
verification of assets due as per this programme has been carried out.
No material discrepancies were noticed on such physical verification.
(ii) In respect of its inventories:
(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 explanation
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) The Company has granted Unsecured Loans to 2 parties (including 1
Company) covered in the register maintained under Section 189 of the
Act:
(a) In respect of the aforesaid loans, the parties are repaying the
Principal Amounts, as stipulated, and are also regular in payment of
interest as applicable.
(b) In respect of the aforesaid loans, there is no overdue amount more
than Rupees One Lakh.
(iv) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchases of
inventories & fixed assets and with regard to the sale of goods &
services. During the course of our audit, no major weakness has been
noticed in the underlying internal controls.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of Paragraph 3 of the Order are not
applicable.
(vi) We have broadly reviewed the cost records maintained by the
Company as prescribed by the Central Government under Section 148(1) of
the Act and are of the opinion that, prima facie, the prescribed cost
records have been maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) In respect of Statutory Dues:
(a) As explained to us, the statutory dues payable by the Company
comprises of Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Custom Duty, Excise Duty, Value Added Tax, etc. According to
the records of the Company and information and explanations given to
us, the Company has been regularly depositing the aforesaid undisputed
statutory dues with the appropriate authorities. There are no
undisputed statutory dues as referred to above as at 31st March, 2015
outstanding for a period of more than six months from the date they
become payable.
b) According to the records of the Company and information and
explanations given to us, there are dues of Income Tax aggregating Rs.
2849690/- and Sales Tax aggregating Rs. 5014928.60/-, which have not
been deposited on account of disputes, the details of which are set out
below. We have been informed that there are no further dues in respect
of income tax, sales tax and custom duty which have not been deposited
on account of any dispute.
Nature of Demand Amount of Amount Deposited
Demand/Dispute
I. Income Tax Disallowance of claim -
(For The Company) U/S 80 HHC
II. Income Tax Rs. 14, 33,509/- -
(For The Company)
III. Income Tax Rs. 5, 23,839/- Rs. 4, 00,000/-
(For EWPL now
Merged with the
Company)
IV Income Tax Rs. 12,92,342/- -
(For EWPL now
Merged with the
Company)
V Sales Tax & VAT Rs. 43,56,213/- Rs.38,300/-
(For The Company)
VI. Sales Tax & VAT Rs. 6,97,015.60/- -
(For The Company)
Nature of Demand Forum where dispute
is pending
I. Income Tax Appeal U/s 250 for
(For The Company) Assessment Year 2002-03
Before Appellate Tribunal.
II. Income Tax Appeal u/s 246A for
(For The Company) Assessment Year 2012-13
Before CIT (Appeals)
III. Income Tax Appeal u/s 250 for
(For EWPL now Assessment Year 2007-08
Merged with the Before Appellate Tribunal.
Company)
IV Income Tax Appeal u/s 250 for
(For EWPL now Assessment Year 2008-09
Merged with the Before Appellate Tribunal.
Company)
V Sales Tax & VAT Appeal with Joint Commissioner
(For The Company) for the Financial Year 2010-2011
VI. Sales Tax & VAT Appeal with Joint Commissioner
(For The Company) for the Financial Year 2010-2011
(c) The Company has transferred Rs. 757434/- to the Investor Education
and Protection Fund in accordance with Section 205C and other relevant
provisions of the Companies Act, 1956, and rules made thereunder within
the prescribed time limit.
(viii) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and there is no
cash loss in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to banks. The Company
has not issued any debentures.
(x) The company has not given any guarantee for loans taken by others,
therefore the provisions of Clause (xi) of Paragraph 3 of the Order are
not applicable.
(xi) In our opinion, the Term Loan has been applied for the purpose for
which they were obtained.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the course of
our audit during the year.
For JAGDISH AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.320253E
Place: Kolkata. J.P.AGARWAL
Dated: The 30th Day of May, 2015 PARTNER
Membership No.055436
|