SENSEX NIFTY
KCP | Auditor's Report > Cement - Major > Auditor's Report from KCP - BSE: 590066, NSE: KCP
YOU ARE HERE > MONEYCONTROL > MARKETS > CEMENT - MAJOR > AUDITORS REPORT - KCP

KCP

BSE: 590066|NSE: KCP|ISIN: INE805C01028|SECTOR: Cement - Major
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Jan 19, 16:00
86.90
0.8 (0.93%)
VOLUME 26,297
LIVE
NSE
Jan 19, 15:40
86.95
0.8 (0.93%)
VOLUME 139,835
« Mar 15
Auditor's Report (KCP) Year End : Mar '16

Report on Standalone Financial Statements:

We have audited the accompanying standalone financial statements of The KCP Limited, Chennai, 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
significant accounting policies and other explanatory 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 Companies Act, 2013 with respect
to the preparation of these standalone 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 Companies Act, 2013 read with Rule 7 of 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 the 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

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Companies Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Companies Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies 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.

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 of error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company''s preparation of 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.

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

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 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 flows for the year ended on that date.


Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor''s Report) Order,2016(the Order) issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3
and 4 of the Order, to the extent applicable.

2) As required by Section 143(3) of the Companies Act, 2013 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 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 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 Companies Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of written representations 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 Companies Act;

f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating
effectiveness of such controls, refer to our separate report in Annexure B, and

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 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 financial statements - Refer Note
27 to the financial statements;

ii. The company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long term contracts and did not have derivative contracts – Refer Note 48 to the financial statements;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the company


Annexure to the Independent Auditor''s Report:

The Annexure referred to in Paragraph 1 under the heading of Report on other Legal and Regulatory Requirements of our report of
even date, to the members of THE KCP LIMITED, CHENNAI for the year ended 31st March 2016. We report that:

(i) at The company has maintained proper records showing full particulars including quantitative details and situation of its
fixed assets

b. The Fixed Assets are physically verified by the management according to a phased program designed to cover all the items 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
assets. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year
and no material discrepancies have been noticed on such verification.

c. According to the information and explanations given to us and on the basis of our examination of the records of the company,
the title deeds of the immovable property are held in the name of the company

(ii) The inventory has been physically verified by the management at reasonable intervals during the year under report and the
discrepancies noticed during such physical verification of inventories as compared to book records have been properly dealt with
in the books of account.

(iii) The company has not granted any loans to companies, fi rms, Limited Liability Partnerships or other parties covered in the
register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of clause 3(iii)(a), 3(iii)(b) &
3(iii)(c) of the said order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, the company has not granted any loans,
guarantees and security in accordance with the provisions of section 185 of the Companies Act 2013. The company has complied with
the provisions of Section 186 of the Companies Act 2013, in respect of investments made by the company.

(v) In our opinion the company has complied with the provisions of section 73 to 76 and other applicable provisions of the
Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public.
According to the information furnished to us, no Order has been passed on the company by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non- compliance with the provisions of
Sections 73 to 76 of the Companies Act 2013.

(vi) We have broadly reviewed the books of account and records maintained by the company at its cement, engineering and electric
power generation units pursuant to the Rules made by the Central Government for the maintenance of Cost Records under section
148(1) of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made
and maintained.

(vii) (a) According to the information and explanations given to us and the basis of our examination of the records of the
company, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, , Service Tax, duty of Customs, duty of Excise,
Value added tax, Cess and other material statutory dues applicable to it.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income
Tax, Sales Tax, Service Tax, duty of customs, duty of Excise, value added tax, cess and other material statutory dues were in
arrears as at 31st March 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there were no amounts of Sales Tax, duty of Customs, duty of
Excise, Cess, Income Tax, Service Tax that have been disputed by the company, and hence, were not remitted to the concerned
authorities at the date of the Balance Sheet under report, except

S. Nature of dues Name of the statute Period
No.


1 Excise duty
and related The Central Excise
Act, 1944 1996-2013
demands

2 Sales tax and
related The AP Sales Tax
Act, 1957 1996-2001
demands

3 Sales tax and
related Tamilnadu \
Sales Tax Act 2007-08
demands

4 Sales tax and
related UP Sales Tax
Act 1948 1988
demands

5. Forest Permit
Charges A.P Forest
Produce transit 2010-15
Rules 1970

6 Royalty MMDR Act,1957 1986-87

7 Net Present
Value of The Forest
Conservation 2014-15
Safety Zone Area Act,1980

8 Income Tax The Income
Tax Act 1961 2010-11
to 2012-13

Nature of dues Amount in Forum where the
RS, Lakhs dispute is pending

Excise duty
and related
demands 3281.06 At various Appellate forums

Sales tax
and related
demands 112.29 AP High Court

Sales tax
and related
demands 1.82 Addl. Commissioner of
Commercial taxes

Sales tax
and related
demands 18.15 Allahabad High Court

Forest
Permit Charges 268.95 Hon''ble AP High Court

Royalty 0.93 ADMG - Guntur

Net Present Value of
Safety Zone Area 17.87 DFO - Guntur

Income Tax 52.90 CIT (Appeals)

(viii) According to the records of the company examined by us, and the information and explanations given to us, there were no
defaults in repayment of loans or borrowings to banks during the year under report.

(ix) The company did not raise any money by way of initial public offer or further public offer (including debt instruments) and
term loans during the year under report. Accordingly, the provision of clause 3(ix) of the Order is not applicable.

(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 instances of material fraud by the company or any fraud on the company by its officers or employees, noticed or reported
during the year, nor we have been informed of any such case by the management.

(xi) According to the information and explanations given to us and based on our examination of the records of the company, the
company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V of the Companies Act 2013.

(xii) In our opinion and according to the information and explanations furnished to us, the company is not a chit fund or a
nidhi/mutual benefit fund/society and hence, the requirement of clause 3(xii) of the Order is not applicable to the company
during the year under report.

(xiii) According to the information and explanations given to us and based on our examination of the records of the company,
transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and details of
such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us, and based on our examination of the records of the company, the
company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during
the year.

(xv) According to the information and explanations given to us, and based on our examinations of the records of the company, the
company has not entered into non-cash transactions with directors or persons connected with them. Therefore, the provision of
clause 3(xv) of the Order is not applicable.

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

For BRAHMAYYA & CO

Chartered Accountants

Firm Regd No 000513S

Place: Chennai T. V. Ramana

Partner

Date: 27th May, 2016 (ICAI Memb. No. 200523)

Source : Dion Global Solutions Limited
Quick Links for kcp
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.