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Kwality Ltd.

BSE: 531882 | NSE: KWALITY | Series: NA | ISIN: INE775B01025 | SECTOR: Food Processing

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Feb 23, 16:00
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Kwality is not traded on BSE in the last 30 days

NSE Live

Feb 23, 15:58
2.20 0.00 (0.00%)
Volume
No Data Available
2,190,309
  • Prev. Close

    2.20

  • Open Price

    2.20

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    2.20 (70999)

Kwality is not traded on NSE in the last 30 days

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Kwality Limited (‘the Company’), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as “standalone Ind AS financial statements”).

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 standalone Ind AS financial statements that give a true and fair view of the state of affairs of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(‘Ind AS’) specified under Section 133 of the Act.

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 standalone Ind AS 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 Ind AS 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 thereunder.

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 these standalone Ind AS financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company’s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on these standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including Ind AS specified under Section 133 of the Act, of the financial position of the Company as at 31st March 2017, and its profit including other comprehensive income, its cash flows and statement of changes in equity 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 Section 143(11) of the Act, we give in the “Annexure-A”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;

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, the statement of cash flow and the statement of changes in equity dealt with by this report are in agreement with the books of accounts;

d) in our opinion, the aforesaid standalone Ind AS financial statements comply with Accounting Standards specified under Section 133 of the Act read with the relevant rule issued thereunder;

e) on the basis of the written representations received from the directors as on 31st March 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act;

f) with respect to the adequacy of internal financial controls over financial reporting of the Company and operating effectiveness of such controls, refer to our separate report on “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 (as amended), 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 standalone Ind AS financial statements- refer Note 38 to the standalone Ind AS financial statements.

ii The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

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

h) The Company has made requisite disclosures in these standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company, refer Note 43 to the standalone Ind AS financial statement.

The Annexure referred to in Independent Auditor’s Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March 2017, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of all the immovable properties are held in the name of the Company.

(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed have been properly dealt with in the books of account.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (‘the Act’).

(iv) In our opinion and according to the information and explanation given to us, the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security is not applicable to the Company under review.

(v) In our opinion, the Company has not accepted any deposits within the mean of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2014 prescribed by the Central Government under section 148 of the Act and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have not, however, made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii) In Respect to Statutory Dues:

(a) According to the records examined by us, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with appropriate authorities, except undisputed amount of Income Tax Liability of Rs. 4334.06 lacs (previous year Rs. 4163.12 lacs) outstanding as at the last day of the financial year for a period exceeding six months from the date it became payable.

(b) According to the information and explanation given to us, there are no dues of income tax, service tax, custom duty, excise duty which have not been deposited with the appropriate authorities on account of any dispute except as under.

Name of the statute

Nature of dues

Amount unpaid (Rs in lacs)

Period to which the amount relates

Forum where dispute is pending

Haryana Livestock Development Board, Gurgaon.

Milk Cess

208.87 (187.65 deposited against 396.52 under protest)

2002-2017

Supreme Court of India

Haryana Livestock Development Board, Gurgaon.

Interest on Milk Cess

2552.95

2002-2017

Supreme Court of India

Uttar Pradesh VAT

VAT

16.13(24.30 deposited against 40.43 under protest)

2012-2015

Additional Commissioner (Appeal), Ghaziabad, UP

Kerala VAT

VAT

1.40

2013-14

High Court (Kerala)


(viii) The Company has not defaulted in repayment of loans or borrowings to any financial institution or a bank or government or any dues to debenture-holders during the year under review.

(ix) The Company did not raise monies by way of initial public offer or further public offer (including debt instruments). The monies raised by way of term loans obtained during the year have been utilized by the Company for the purpose they have been raised.

(x) According to the information and explanation given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year covered by our audit.

(xi) According to the information and explanation given to us and based on our examination of the records of the Company, the managerial remuneration paid by the Company during the year is in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion and according to information and explanations given to us, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.

(xiii) According to the information and explanation given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.

(xiv) During the year, the Company has made preferential allotment of shares and compulsory convertible debentures. In respect of the same, in our opinion, the Company has complied with the requirement of Section 42 of the Act and the Rules framed thereunder. Further, in our opinion, the amounts so raised have been used for the purposes for which the funds were raised.

(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act. Accordingly, provisions of clause 3(xv) of the Order are not applicable.

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

For P.P. Mukerjee & Associates

Chartered Accountants

Firm’s Registration No.: 023276N

sd/-

P.P. Mukerjee

Proprietor

Membership Number: 089854

Place: New Delhi

Date: 26 May 2017