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Evexia Lifecare Ltd.

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Annual Report

For Year :
2018 2016 2015 2014 2012 2011

Auditor's Report

Report on Standalone Financial Statements

We have audited the accompanying Standalone financial Statement of Kavit Industries Limited(/the company'') (Formerly known as Atreya Petrochem Limited) which comprises the Balance Sheet as at 31st March 2018, the statement of Profit & Loss and Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the 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 and 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 (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.

Auditor''s Responsibility

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, 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 there under. 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.

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

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 financial statements.

Opinion

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:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018 subject to below qualification;

b) in the case of the Profit and Loss Account, of the profit for the year ended on that date ; and

c) in the case of the Cash Flow Statement, the cash flows for the year ended on that date.

Emphasis of matter paragraph

Following points require attention of stake holder.

a) Company has not filled Return no SH07 to increase authorized share capital. Failure of which will result in failure to increase it''s authorized share capital to paid-up capital.

b) Company has violated the provision of Section 185/186 of Companies Act 2013 w.r.t loans and advances awarded to it''s subsidiary company other than it''s wholly owned subsidiary company. Below is the list of loans and advances granted to its subsidiary

Sr no

Name of the subsidiary company

Amount outstanding as on balance sheet date

1

Kavit Edible Oil Limited

156.49 Lakhs

2

Kavit Infoline Pvt Limited

9.73 Lakhs

3

Kavit Infra Project Pvt Ltd

160.58 Lakhs

4

Kavit Swachh Organic Food Pvt Ltd

162.20 Lakhs

5

Pacific Finstock Ltd

126.84 Lakhs

6

Pacific Health Information

112.14 Lakhs

7

Sauver Finvest Mutual Benefits Ltd

95.69 Lakhs

8

Shreenathji Finstock Pvt Ltd

94.54 Lakhs

The terms of repayment, Rate of interest and other discloser as per Schedule III of the companies Act 2013 have not been made which will resulted into misstatement of financial position and performance of the company, the effect of which is not able to quantifiable in amount.

Private Limited at a profit of Rs.49,00,000.00during the year.

As Kavit Green Energy Private Limited was the subsidiary as on 31st March 2017 but ceases to be subsidiary as on 31st March 2018, Figures of financial position of current year and previous year has been reschedule accordingly in books of accounts.

d) It is to be noted that as per Ind AS 16 Property, Plant and Equipment and Ind AS 113 Fair Value Measurement is used to arrive at the fair value of the fixed assets of the company. During the year, company has taken external valuation report from independent valuer and made revaluation of company''s land, building, plant & machinery to enable company to consistence with IAS. Figures mentioned in balance sheet are revalued figures at its realizable prize. Following is the revalued figures assets wise.

Sr.no

Description of the assets

Balance as on 31.03.2017

Revalued amount as per Valuation report

1

Factory land

12,94,309.00

7,39,49,691.00

2

Plant & Machinery

1,91,54,125.00

61,27,980.00

Company has made upward revaluation of Land by Rs.7,04,62,931.00 during the year as shown above on the basis of valuation report of independent valuer. The effect of the same will be transferred to revaluation reserve hence figures of reserve is being amplify by Rs.7,26,55,382.

e) Kavit Edible Oil Ltd is subsidiary company of Kavit Industries Ltd with 80% shareholding. Auditee Company has made sale-purchase transactions of edible and other Oil products with Kavit Edible Oil Ltd during the year. We have observed that company made sales and purchase transaction at the rate mutually agreed between the companies. Looking at the nature of product and nature of transactions, we are unable to comment on rate at which transaction has carried out during the year. Furthermore company is in process to file MGT 14

Report on other legal and Regulatory Requirement

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 (11) of section 143 of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

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;

as appears from our examination of those books;

c) The Balance Sheet, and Statement of Profit and Loss, dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the Ind Accounting Standards specified under section 133 of the Act, read with Rule 7 of the companies (Accounts), 2014;

e) On the basis of written representations received from the directors as on March 31, 2018, and o on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 II to this report; and

g) With respect to the 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 explanation given to us:

i. The Company has disclosed the impact of pending litigation on its financial position in its financial Statements ;

ii. The Company did not have any long term contract including derivative contract for which there are any material foreseeable losses.

iii. There were no amounts which are required to be transferred to the Investor Education and protection Fund by the Company.

iv. The Company has provided requisite disclosure in Note 2(t) to these Standalone Financial statements as to the holdings of Specified Bank Notes on 08th November, 2016 and 30th December, 2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transaction, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.

(i) In Respect of its Fixed Assets:

(a) As informed to us, the Company is in process to compile with records to showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, fixed assets, according to the practice of the Company Fixed Assets are physically verified by the management at reasonable intervals, in a phased verification-programme, which, in our opinion, requires additional efforts looking at the size of the Company and the nature of its business. As informed to us, no material discrepancies have been noticed on verification;

(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company.

(ii) In Respect of its Inventory:

(a) As informed to us, the Inventory of Finished and semi-finished goods and raw materials at works were physical verified by the management at reasonable intervals during the year. In our opinion, having regard to the nature and location of stock, the frequency of verification requires additional efforts specifically to safeguard the interest of the stake holder.

(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 requires additional efforts and strongly advise company to prepare suitable internal control policies and procedure w.r.t procurement, storage and dispatch of inventory.

(c) In our opinion and according to the information and explanations given to us, the Company has fails to maintain proper records of movement of inventory as to company has not maintain record of material discrepancy during physical verification. Furthermore company fails to book evaporation loss in books of accounts hence there is difference between stocks on hand as per stock record and physical inventory.

(iii) In Respect of Loans & Advances given & taken to Related Party:

In Respect of loans, secured or unsecured, granted by the Company to companies, firms, Limited

Liability Partnerships or other parties covered in the register maintained under section 189 of the Act:

a) In our opinion and according to information given to us, the terms and conditions of loans given by the company are prima facie, prejudicial to the interest of the company.

b) All the loans Secured or Unsecured are without any repayment schedule but are payable on demand.

c) There are no overdue amounts as at the year-end in respect of Principal and Interest.

d) The company has failed to fulfilled provision of section 185/186 of Companies Act 2013 w.r.t Loans to related parties and to its subsidiaries.

e) The terms of repayment, Rate of interest and other discloser as per Schedule III of the companies Act 2013 have not been stipulated.

(iv) In Respect of Loans & Advances given and taken:

In our opinion and according to the information and explanations given to us, the company has contravened the Provision of section 185 and section 186 of the Companies Act in respect of investment made with by the company.

(v) In Respect of Deposits:

According to the Information and Explanation given to us, the Company has not accepted any deposit from public.

(vi) In Respect of Cost Records:

To the best of our knowledge and as explained, the Central Government has not specified the maintenance of cost records under clause 148 (1) of the Act, for the services of the Company.

(vii) In respect of statutory dues:

(a) According to the information, explanation and records verified by us the Company has generally been regular in depositing Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise Duty, Cess, other material statutory dues applicable to it with the appropriate authorities. We are informed that the company intends to obtains exemption from Provident Fund, Employees state insurance Act.

(b)There were no undisputed amounts payable in respect of Income Tax, GST, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other material statutory dues in arrears as at 31st March,2018 for a period of more than six months for the date they become payable.

(c) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31 March,2018 on account of disputes are given below:

Name of the Statue

Nature of Dues

Forum where Dispute is pending

Period to which amount relates

Original Amount Involved (Amount in Rs.)

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-1995-96

4,000.00

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-1999-00

16,74,000.00

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-2000-01

1,41,41,000.00

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-2003-04

13,000.00

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-2004-05

13,000.00

Income Tax

Income Tax

Appealed Filed & Hearing Pending

A.Y.-2014-15

22,08,86,856.00

Excise Duty

Excise Duty

Jurisdiction AO

F.Y.-2016-17

19,000.00

(viii) In Respect of Repayment of Borrowings:

The Company has neither issued debentures nor availed any loan from Banks, financial institutions or government. Therefore, the provision of clause 3(viii) of the order are not applicable the company.

(ix) In Respect of Public Issue:

Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, the company has not raised any money by way of initial public offer or further public offer or debt instruments and terms loans hence, reporting under clause 3 (xi) of the Order are not applicable to the company and hence not commented upon.

(x) In Respect to Frauds:

(xi) In Respect to Managerial Remuneration:

Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, We report that the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provision of section 197 read with schedule V to the Act.

(xii) In Respect to Nidhi Company:

In our opinion, the Company is not a Nidhi company. Therefore, the provision of clause 3 (xiii) of the order are not applicable to the company and hence not commented upon.

(xiii) In Respect to Transaction with Related Party:

Based upon the audit procedures performed for the purpose of reporting the ture and Fair view of the financial statements and according to the information and explanations given by the management, transaction with the related parties are in compliance with section 177 and 188 of the companies Act,2013 where applicable and the details have been disclosed in the notes to the financial statements, are required by the applicable ind accounting standards.

(xiv) In Respect to Preferential Issue:

According to the information and explanations given to us and on overall examination of the balance sheet, the company has not made by any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.

(xv) In Respect to Non Cash Transaction with Directors &Relatives:

Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, the Company has not entered into any non-cash transaction with directors or persons connected with him.

(xvi) In Respect to Investment Company:

According to information and explanation given us, the provision of section of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the company.

Annexure II to the Independent Auditor’s Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the internal financial controls over financial reporting of Kavit Industries Limited (the Company) as of 31st March 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s 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 company''s 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 Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s 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 Guidance Note) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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.

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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s 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 company''s 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 accordai ally accepted accounting principles, and that receipts and expenditures of the company are Demg maue 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 company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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.

Basis of qualified opinion

It is observed that the company has not appointed an internal auditor perusing to section 138 of companies Act, 2013. In our opinion, the Company has weak internal control w.r.t area of procurement, storage and dispatch of goods held for trade, cash sales and area of fixed assets recording and verification. Except for area mentioned, an adequate internal financial controls system exists over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 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.

For Sheetal Samriya & Associate

Chartered Accountants,

Firm Registration No.:011478C

SD/-

Abhitesh Dubey

Partner

Membership No.: 147923

Vadodara, 29th May, 2018.