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Kabsons Industries Ltd.

BSE: 524675 | NSE: | Series: NA | ISIN: INE645C01010 | SECTOR: Miscellaneous

BSE Live

May 29, 16:00
3.35 0.15 (4.69%)
Volume
AVERAGE VOLUME
5-Day
993
10-Day
865
30-Day
739
3,559
  • Prev. Close

    3.20

  • Open Price

    3.20

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    3.30 (220)

NSE Live

Dec 27, 11:22
NT* 0.00 (0.00%)
Volume
No Data Available
0
  • Prev. Close

    -

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

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Kabsons Industries is not listed on NSE

Annual Report

For Year :
2014 2013 2012 2011 2010 2009 2008 2007 2006

Auditor's Report

We have audited the accompanying Financial Statements of KABSONS INDUSTRIES LIMITED, HYDERABAD (A.P)(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 Summary of Significant Accounting Policies and other explanatory information. Management''s responsibility for the Financial Statements Management 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 in the sub-section(3C)of section 211 of the Companies Act 1956(the Act). This responsibility includes the design, implementation and maintenance of internal control relevant tothe 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 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 the 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 disclosures in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers 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 the management, 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 qualified audit opinion. Basis for qualified opinion: The Company has not adopted and complied with the requirements of AS-15 Employee Benefits'' in respect of the Gratuity liability which constitute a departure from the Accounting standards referred in section 211(3C) of the Act. In view of this the liability of the company in this regard could not be ascertained Consequently, we are unable to comment about the impact of the same on the profit for the year, income tax and shareholder''s finds. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion Paragraph, the 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 March 31, 2014; (b) In the case of the Statement of Profit and Loss, of the profit for the year ended on the date; and (c) In the case of the Cash flow statement, of the cash flows for the year ended on that date. Emphasis of matter (a) We draw attention to Note 24.1 in the financialstatements which states that the Company''s currentliabilities exceeded its current assets by Rs. 3.36 crones. Further,as indicated by the Company''s Balance Sheet as at March 31, 2014, the net worth of the Company has eroded completely. These conditionsalong with other matters as set forth in Note 24.1, indicate the existence of a material uncertaintythat may cast significant doubt about the Company''s ability to continue as agoing concern (b) We draw attention to Note 24.3in the financialstatements which states that the Company has not provided for the interest expense amounting to Rs. 6,34, 899for the year and Rs. 78,05,598 for earlier years against the Trade Deposits received from the Dealers/ Distributors.Consequently, the same has resulted in overstatement of profit for the year by Rs. 6,34,889, understatement of the balance in the statement of profit and loss by Rs. Rs. 84,40,497 and understatement of Current Liabilities by Rs. 84,40,497. Other matters The Company could not get confirmation of balances in respect of (a) Trade Receivables amounting to Rs.42,05,216 and (b) Trade Payables amounting to Rs. 17,43,136. Consequently, we are unable to determine, if any adjustments are required to the amounts reflecting in the Balance Sheet as at March 31, 2014 and the impact of the same on the profit for the year, income tax and shareholder''s funds. Our opinion is not qualified in this regard. Report on other Legal and Regulatory requirements 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. 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, the Statement of Profit and Loss and Cash Flow statement dealt with by this report are in agreement with the books of account; (d) except for the matter described under the basis for qualified opinion paragraph in our opinion, the Balance sheet, Statement of Profit and Loss, and Cash flow Statement 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 March 31,2014 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a Director in terms of clause(g) of sub-section (1) of section 274 of the Act; (f) Since the Central Government has not issued any notification as to the rate at which cess is to be paid under section 441A of the Companies Act 1956 nor has it issued any rules under the said section prescribing the manner in which such cess is to be paid, no cess is due and payable by the company. ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE Statement on the Companies (Auditor''s Report) Order 2003 Re: KABSONS INDUSTRIES LIMITED i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situationof fixed assets. (b) All the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets.No material discrepancies were noticed on such verification. (c) During the year, the company has disposed off fixed assets which are not substantial part of the fixed assets. ii) (a) The inventory has been physically verified during theyear by themanagement. In our opinion, thefrequency of verification is reasonable. (b) 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) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records have been properly dealt with in thebooks of account. iii)(a) The company has not granted any loans, secured orunsecured to companies, firms or other parties covered inthe register maintained uls.301 of the Act. (b) The company had taken interest free secured loan from a Company , interest-free unsecured loan from another Company and from a party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 31 Lakhs and the year-end balance of loans taken from such parties was Rs. 31 Lakhs. (c) In our opinion, the terms and conditions on which loans have been taken from companies, and parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima facie, prejudicial to the interest of the company. (d) According to explanations given to us, the lenders have not specified repayment terms. In view of this we cannot comment upon whether the payment of principal is regular. iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systemscommensurate with the size of the Companyand the nature of its business with regard to purchases of inventory,fixed assets and with regard to the sale of goods and gas. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems. v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. vi) The company has not accepted the deposits from the public within the meaning of Section 58Aand 58AA of the Companies Act, 1956 and the Rules framed thereunder. vii) The company has no internal audit system. viii) The Central Government has not prescribed maintenance of cost records under clause (d) of subsection (1) of Section 209 (1)(d) of the Companies Act, 1956 for the products/items dealt with by the company. ix) (a) The company is not regular in depositing with appropriate authorities undisputed statutory dues including investor education protection fund, employee''s state insurance, sales tax. The extent of the arrears of outstanding statutory dues as at the last day of the financial year for a period of more than six months from the date they became payable are as given below: S. Name of the Nature of the Amount Period to Due date no Statue dues (Rs.) which the amount relates 1 Companies Investor 22,550 1994-95 19.10.2001 Act, 1956 Education and Protection Fund 2 Maharashtra Sales Tax 5,817 2005-06 15.05.2005 Sales Tax Act 3 Maharashtra Sales Tax 9,538 2004-05 15.04.2005 Sales Tax Act 4 Maharashtra Sales Tax 800 2003-04 15.01.2004 Sales Tax Act 5 BST Act Sales Tax and 73,735 1997-98 15.08.2004 Penalty 6 BST Act Sales Tax and 1,34,780 1998-99 15.08.2004 Penalty 7 CST Act Sales Tax and 1,31,000 1997-98 15.08.2004 Penalty 8 CST Act Sales Tax and 5,17,000 1998-99 15.08.2004 Penalty (b) According to the information and explanations given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute. x) The accumulated losses of the company are more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit and as well as in the immediately preceding financial year. xi) During the financial year covered by our audit the Company hadnot borrowed from financial institutions. Hence, clause (xi) of the above referred Order is not applicable. xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. xiii) The company is neither a chit fund nor a nidhi mutual benefitfund/society. Therefore, the provisions of clause 4(xiii) of the above referred Order are not applicable to the company. xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the above referred Order are not applicable to the company. xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. xvi) During the year the company has not availed any term loans from banks or financial institutions. Accordingly, the provisions of clause 4(xvi) of the above referred Order are not applicable to the company. xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for longterm investment. xviii) The company has not made preferential allotment of shares to parties and companies covered inthe register maintained under section 301 of the Act during the year. xix) The company has not issued any debentures. Accordingly, the provisions of clause 4(xix) of the above referred Order are not applicable to the company. xx) During the year the company has not raised money by public issue. Accordingly, the provisions of clause 4(xx) of the above referred Order are not applicable to the company. xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit. for BRAHMAYYA & CO., Chartered Accountants. Firm''s Regn.No.0005135 Sd/- (D.SEETHARAMAIAH) Partner Membership No.002907 Place: Hyderabad Date : 26-05-2014