You are here » Home » Companies ยป Company Overview » Kinetic Engineering Ltd

Kinetic Engineering Ltd.

BSE: 500240 Sector: Auto
NSE: KINETICENG ISIN Code: INE266B01017
BSE 00:00 | 24 Apr 2020 Kinetic Engineering Ltd
NSE 05:30 | 01 Jan 1970 Kinetic Engineering Ltd

Notice: Undefined property: stdClass::$market_capital_for_nse in /usr2/unibs/application/modules/live-market/views/scripts/company/bs-new-bse-nse-block.php on line 17
OPEN 18.10
PREVIOUS CLOSE 18.80
VOLUME 72
52-Week high 49.40
52-Week low 11.20
P/E
Mkt Cap.(Rs cr) 32
Buy Price 17.86
Buy Qty 40.00
Sell Price 19.40
Sell Qty 50.00
OPEN 18.10
CLOSE 18.80
VOLUME 72
52-Week high 49.40
52-Week low 11.20
P/E
Mkt Cap.(Rs cr) 32
Buy Price 17.86
Buy Qty 40.00
Sell Price 19.40
Sell Qty 50.00

Kinetic Engineering Ltd. (KINETICENG) - Auditors Report


Notice: Undefined variable: pattern in /usr2/unibs/application/modules/live-market/views/scripts/company/annual-report.php on line 72

Company auditors report

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF KINETIC ENGINEERING LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of KineticEngineering Limited (the "Company") which comprise the Balance Sheet as atMarch 31 2018 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flow and the Statement of Changes in Equity for the yearended on 31st March 2018 and a summary of the significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the "Act") with respect to the preparation ofthese Standalone Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including other Comprehensive Income Cash Flowsand changes in Equity of the company in accordance with the Indian Accounting Standards("Ind AS") prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended and other accounting principlesgenerally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our Audit.

In conducting our audit we have taken into account the provisions of the Act theAccounting and Auditing Standards and matters which are required to be included in theAudit Report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of the Act.

We conducted our Audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the Audit to obtainreasonable assurance about whether the Standalone Ind AS Financial Statements are freefrom material misstatement.

An Audit involves performing procedures to obtain Audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the Auditor’s judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the Auditor considers internal financial controlrelevant to the Company’s preparation of the Standalone Ind AS Financial Statementsthat give a true and fair view in order to design Audit procedures that are appropriate inthe circumstances. An Audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the StandaloneInd AS Financial Statements.

We believe that the Audit evidence obtained by us is sufficient and appropriate toprovide a basis for our Audit opinion on the Standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2018 and its Loss total Comprehensive Incomeits Cash Flows and the changes in Equity for the year ended on that date.

Emphasis of Matter

We draw attention to the following matters in the Notes to the Standalone Ind ASFinancial Statements: a. The financial information of the Company for the year ended March31 2017 and the transition date opening balance sheet as at April 1 2016 included inthese Standalone Ind AS Financial Statements are based on the previously issued statutoryfinancial statements for the years ended March 31 2017 and March 31 2016 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended) which wereaudited by predecessor on which they expressed an unmodified opinion dated May 29 2017and May 28 2016 respectively. The adjustments to those financial statements for thedifferences in accounting principles adopted by the Company on transition to the Ind AShave been audited by us.

b. Refer Note No. 31 relating to Managerial remuneration which is subject to approvalof Central Govt.

c. Refer Note No. 45 describing the basis of company’s ability to continue as aGoing Concern.

Our opinion is not modified in respect of the above mentioned matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143(3) of the Act based on our Audit we report to theextent applicable that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the

Statement of Cash Flow and Statement of Changes in Equity dealt with by this Reportare in agreement with the relevant books of accounts.

d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

e) On the basis of the Written Representations received from the Directors as on 31stMarch 2018 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2018 from being appointed as a Director in terms ofSection164(2) of the Act.

f) With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigation on its financial positionin its Standalone Ind AS Financial Statements – Refer Note No. 39.

ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There has been no amount required to be transferred to the Investor Education andProtection Fund by the Company.

For Pawan Jain And Associates
Chartered Accountants
Firm’s Registration No.: 0107867W
Pawan Jain
Partner
Membership No.: 032900
Pune
29th May 2018

Annexure "A" to the Independent Auditor’s Report

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report on even date)

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As informed to us the fixed assets are been physically verified by the managementat regular intervals based on the programme of verification which in our opinion isreasonable. All the major fixed assets have been verified by the management in the currentyear and discrepancies noticed on such physical verification were not material and thesame have been properly dealt with in the books of account.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed / transfer deed /conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of land and buildings which are freehold are held in the name of theCompany as at the balance sheet date. In respect of immovable properties of land andbuildings that have been taken on lease and disclosed as fixed asset in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement.

ii. Physical verification of inventory has been conducted by the management during thecurrent year. In our opinion the interval of such verification is reasonable. As informedto us discrepancies noticed on physical verification were not material and the same havebeen properly dealt with in the books of account.

iii. The company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Therefore clause (iii) a b and c of the Orderare not applicable to the Company.

iv. According to the information and explanations provided to us in respect of loansinvestments guarantees and security; provisions of Sections 185 and 186 of the CompaniesAct 2013 have been complied with wherever applicable.

v. According to information and explanation provided to us the Company has notaccepted deposits hence the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under are not applicable to the Company. According to informationand explanation provided to us no order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.

vi. As informed to us the cost records pursuant to the rules made by the CentralGovernment for the maintenance of cost records under sub-section (1) of Section 148 of theCompanies Act 2013 are not applicable to the company.

vii. (a) According to the records of the company it is generally regular in depositingundisputed statutory dues of provident fund employees’ state insurance income-taxgoods and service tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities exceptdepositing dues of Provident Fund where there are delays.

According to the information and explanation provided to us undisputed amounts payablein respect of Provident Fund and ESIC amounting to Rs. 8.07 lakhs and in respect of IncomeTax Deducted at Source amounting to Rs. 5.38 Lakhs were in arrears as at 31st March 2018for a period of more than six months from the date they became payable.

(b) According to the information and explanation provided to us following dues ofIncome Tax Sales Tax CST Service Tax Entry Tax Excise Duty Value Added Tax have notbeen deposited on account of some dispute:

Nature of Dues Amount Forum where dispute is pending
Income Tax 2000-01 1.29 ITAT Pune
Income Tax 2009-10 186.12 CIT Appeals Pune
Income Tax 2011-12 0.24 CIT Appeals Pune
West Bengal Sales tax
CST 2001-02 02-03 6.92 Dy. Commissioner of Sales Tax Kolkata
CST (Pune) 2005-06 65.35 Commissioner Sales Tax Pune
CST 1994-95 99-00 00-01 02-03 105.77 Appellate Dy. Commissioner
03-04 08-09 07-08 09-10 Commercial Tax Indore
CST 1998-99 2001-02 27.27 Appellate Dy. Commissioner
Commercial Tax Indore
Sales Tax Kolkata 2001-02 0.60 Sales Tax Tribunal Kolkata
Entry Tax 1994-95 95-96 2007-08 8.41 Dy. Commissioner Commercial Tax Indore
MP Commercial Tax 1998-99 1.88 Appellate Dy. Commissioner
Commercial Tax Indore
MP Commercial Tax 1999-00 14.12 Appellate Dy. Commissioner
2007-08 2008-09 Commercial Tax Indore
Supa VAT 2006-072007-08 361.12 Jt Commissioner Appeals A. Nagar
2008-09 2009-10
Excise Duty 166.19 Appellate Tribunal
Excise Duty 171.19 CESTAT Mumbai and Nagpur

viii. Based on our Audit procedures and according to the information and explanationprovided to us the Company has not defaulted in repayment of dues to a financialinstitution bank or government. The Company does not have any debenture holders.

ix. According to information and explanation provided to us the Company has not raisedmoneys by way of initial public offer or further public offer (including debtinstruments). The Company has not raised any term loans during the year.

x. Based upon the Audit procedures performed by us and according to the information andexplanations provided to us by the management no fraud by the Company or any fraud on theCompany by its officers or employees has been noticed or reported to us during the year.

xi. According to the information and explanation provided to us the managerialremuneration paid of Rs. 53.61 Lakhs is subject to approval of Central Government.

xii. The Company is not a Nidhi Company and accordingly Clause (xii) of the Order isnot applicable to the Company.

xiii. According to the information and explanation provided to us all transactionswith the related parties are in compliance with Sections 177 and 188 of Companies Act2013 wherever applicable and the details have been disclosed in the Standalone Ind ASFinancial Statements as required by the applicable Indian Accounting Standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanation provided to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

xvi. According to the information and explanation provided to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Pawan Jain And Associates
Chartered Accountants
Firm’s Registration No.: 0107867W
Pawan Jain
Partner
Membership No.: 032900
Pune
29th May 2018

Annexure "B" to the Independent Auditor’s Report

(Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report on even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KineticEngineering Limited (the "Company") as of March 31 2018 in conjunction with ourAudit of the Standalone Ind AS Financial Statements of the Company for the year ended onthat date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting of the Company based on our audit. We conducted ourAudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an Audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the Audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our Audit involves performing procedures to obtain Audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our Audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the Auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the Audit evidence we have obtained is sufficient and appropriate toprovide a basis for our Audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2018 based on the criteria forinternal financial control over financial reporting established by Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the ICAI.

For Pawan Jain And Associates
Chartered Accountants
Firm’s Registration No.: 0107867W
Pawan Jain
Partner
Membership No.: 032900
Pune
29th May 2018


Notice: Undefined variable: mediaAbsUrl in /usr2/unibs/application/modules/live-market/controllers/CompanyController.php on line 6061