We have audited the accompanying standalone financial statements of
Kanani Industries Limited which comprise of the Balance Sheet as at 31
March, 2015, 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 (the Act) with respect
to 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 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 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.
Our responsibility is to express an opinion on these financial
statements based on 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 .
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
pronouncements issued by the Institue 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.
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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date;
(iii) 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
1. As required by the companies''(Auditors'' Report) Order,2015 issued
by the Central Government of India in terms of sub -Section (11) 0f
Section 143 of the Companies Act, 2013 and on the basis of such of the
book 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 Paragraph 3 & 4 of
2. 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
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
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 the written representations 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
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 does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company as there were no amounts which were required to be transferred
to the Investor Education and Protection Fund by the Company during the
year ended 31 March, 2015.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in Paragraph 2 of our report of even date)
To The Members of
KANANI INDUSTRIES LIMITED
i. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b. As explained to us, the fixed assets have been physically verified
by the management during the year in accordance with a regular
programme for verification, which in our opinion is reasonable having
regard to the size of the company and nature of its assets. No material
discrepancies were noticed on such physical verification.
ii. a. The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
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 were not material.
iii. a. The company has not granted any loans, secured or unsecured to
any companies,firms or other parties covered in the register maintained
under section 189 of the Companies Act,2013. As such sub-clause (a) and
(b) are not applicable.
iv. In our opinion and 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 inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
v. In our opinion and according to the information and explanations
given to us, the Company did not accept any deposit in contravention of
sections 73 to section 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under. As informed to
us, no order has been passed by Company Law Board or National Company
Tribunal or Reserve Bank of India or any court or any other tribunal.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rule made by the Central Government for
maintenance of cost records under section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. However, we are not required
to carry out and have not carried out a detailed examination of the
records with a view to determine whether they are accurate or complete.
vii. a. The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,investor
education and protection fund, employees'' state insurance fund, income
tax, sales tax, wealth tax, custom duty, excise duty cess and other
material statutory dues wherever applicable to it.
b. As per records of the company and in accordance with the
information and explanation given to us, there are no dues of sales
tax, income tax, custom duty, wealth tax, excise duty and cess which
have not been deposited on account of any dispute.
c. The company has deposited the amount required to be transferred to
the Investor Education & Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made thereunder within time.
viii. The Company does not have any accumulated losses. The company has
neither incurred cash losses during the current financial year nor
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
x. In our opinion, and according to the information and explanation
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. 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 RAVI & DEV
(DEVENDRA A. MEHTA)
Place: Mumbai Partner
Date: May 30th, 2015 M. No.82325