Independent Auditor’s Report
To the Members of
KAJARIA CERAMICS LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial
statements of
KAJARIA CERAMICS LIMITED
(hereafter referred as
the holding company) and its subsidiaries (collectively referred to as
“the Group”), which comprise the Consolidated Balance Sheet as at
31st March 2016, the Consolidated Statement of Profit and Loss, the
Consolidated Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
The Holding 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 consolidated financial
statements that give a true and fair view of the consolidated financial
position, consolidated financial performance and consolidated cash
flows of the Group 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. The respective board of
directors of the companies included in the group are responsible for
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Group
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 which have been used for the purpose
of preparation of Consolidated Financial Statements by the directors
of the Holding Company, as aforesaid.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated
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 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 Holding 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. An audit also
includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by
the Holding Company’s Board of Directors, as well as evaluating the
overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by us and the audit
evidence obtained by other auditors in terms of their reports referred
to in para of the “Other Matters” below, is sufficient and appropriate
to provide a basis for our audit opinion on the consolidated financial
statements.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us, and based on consideration of the
reports of other auditors of subsidiaries, the aforesaid consolidated
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, of the
consolidated state of affairs of the Group as at 31st March 2016,
and its consolidated profit, and its consolidated cash flows for the
year ended on that date.
Other Matters
We did not audit the financial statements of six subsidiaries, whose
financial statements reflect total assets of
`
596.91crores as at
31st March 2016, total revenue of
`
678.66 crores and net cash
flows of
`
(-) 25.57 crores for the year then ended. These financial
statements have been audited by other auditors whose reports
have been furnished to us by the management, and our opinion on
the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of subsidiaries, is based
solely on the reports of other auditors.
We have relied on the unaudited financial statements/financial
information of one subsidiary (Foreign LLP) whose financial statements
reflect total assets of
`
0.01crores as at 31st March 2016, total revenue
of
`
NIL and cash flows amounting to
`
(-) 0.11crores for the year
ended on that date. These unaudited financial statements/financial
information have been furnished to us by the management and our
133
Annual Report 2015-16
