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Kavveri Defence & Wireless Technologies Limited Audit Report / Information 2021
63774_rns_2021-07-08_80df06d0-cd11-4daf-803b-fbcd879f0aca.pdf
Audit Report / Information
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Date: 30.06.2020
| To, | To, |
|---|---|
| BSE Limited, | The Manager, |
| Phiroze Jeejeebhoy Towers, | Department of Corporate Services, |
| Dalal Street, | The National Stock Exchange of India Limited |
| Mumbai- 400 001 | BKC Complex, Bandra (East), Mumbai |
| Scrip Code: 590041 | NSE Symbol: KAVVERITEL |
LD vei | © SPOTWAVE (DY
Subject : Outcome of Board Meeting and Intimation of appointment of Independent Directors.
Ref : Disclosure under Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sirs,
This is to inform you that the Board of Directors of the Company at its meeting held today, approved the standalone and consolidated audited financial results of the Company for the fourth quarter and Year ended on March 31, 2021, based on the recommendation of the Audit Committee and approved the appointment of Mr. Gajanan Bhat having Director Identification Number 09168730 and Mr. Keerthi Narayan having Director Identification Number 06745995 as an Independent Directors of the company with immediate effect.
The meeting commenced at 01:30 PM and concluded at 09:00 PM.
Kindly take the same on record.
Thanking You,
Yours faithfully,
For KavverLFele Products Limited
CHENNAREDDY SHIVAKUMARREDDY Managing Director DIN: 01189348
Plot No. 31 to 36, 1st Main, 2nd Stage, Arakere Mico Layout, Bannerghatta Road, Bangalore-560 076, Karnataka, India. Tel: +91-80-41215999, 41215960 /64 /67 Fax: +91-80-41215966 www.kaveritelecoms.com CIN : L85110KA1996PLC019627
CHARTERED ACCOUNTANTS oT au.
P.MURALI & CO., Tel. —_: (91-40) 2332 6666, 2331 2554 6-3-655/2/3, SOMAJIGUDA, . . . HYDERABAD - 500 082. INDIA E-mail : [email protected] [email protected] Website : www.pmurali.com
Auditor's Report on Audited standalone Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
TO THE BOARD OF DIRECTORS OF "KAVVERI TELECOM PRODUCTS LIMITED"
I. Qualified Opinion
We have audited the accompanying standalone quarterly financial results of KAVVERI TELECOM PRODUCTS LIMITED ("the company") for the quarter ended 31st March, 2021 and the year to date results for the period from 1st April 2020 to 31st March, 2021 attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, these standalone financial results:
- i. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
- ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net loss and other comprehensive income and other financial information for the quarter ended 31st March, 2021 as well as the year to date results for the period from 1s April 2020 to 31st March, 2021
II. Basis for Opinion
i. Material uncertainty related to Going Concern: During the year the company has incurred a Net Loss of Rs. 1,626.15 Lakhs resulting into accumulated losses of Rs. 10,487.78 Lakhs. The Company has obligations towards fund based borrowings from banks aggregating to Rs. 19,389.83 Lakhs. There is significant decrease in revenue over the past few years. These conditions indicate the existence of a material uncertainty that may cast a significant doubt on the Company's ability to continue as going concern and therefore may be unable to realize its assets and discharge its liabilities in the normal course of business. The ultimate outcome of these matters is at present not ascertainable. Accordingly we are unable to comment on the a Jape if any, on the accompanying standalone financial results.
| PMURALI&CO., | Tel. | —_: (91-40) 2332 6666, 2331 2554 | |
|---|---|---|---|
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, HYDERABAD - 500 082. INDIA |
Fax |
2339 3967, 2332 1470. _- (91-40) 2339 2474 [email protected] : [email protected] |
Website : www.pmurali.com
- In relation to carrying value of investments held in by the company to its subsidiaries, which have been incurring losses and in some of these companies, net worth was fully or substantially eroded. Taking into account the management internal assessment and initiatives to be implemented to improve the profitability in the medium to long term, the management of the company is of the view that carrying value of investments are realizable at the value stated in the books. In the ~ absence of fair valuation of these investments, we are unable to comment upon the carrying value and thus, we are unable to comment whether any provision for impairment in the value of investments is required.
- iii. The Company has defaulted in repayment of dues to Banks for the year ended 31st March, 2021. All the loans outstanding were classified as NPA by the Banks. The balance outstanding as at 31.03.2021 is Rs. 19,389.83 Lakhs (Including Principal and Interest Provisions on the loans but excluding Penal Interest if any) as per books of account. In the absence of confirmation of balances from banks, we are unable to ascertain the actual dues to Banks as at 31.03.2021.
- iv. In the absence of proof of physical verification of inventories during the year by the management, we are unable to comment on the discrepancies, if any, between the book records and physical stocks of inventories (Value of inventories as per books of account as at 31.03.2021 is Rs.5609.63 Lakhs).
- In the absence of proof of physical verification of Property, Plant and Equipment during the year by the management, we are unable to comment on the discrepancies, if any, between the book records and physical stocks (Net Block of PPE of Rs.631.14 Jakhe as per books of account as at 31.03.2021).
- Vi. The Company has long pending undisputed statutory dues towards ESI, PF & TDS (Net Payable of Rs.161.41Lakhs as per books of account as at 31.03.2021)
- Vii. In the absence of confirmations of Trade Receivables and various advances, we are unable to comment on the extent to which such balances are recoverable.
- Viil. In the absence of confirmations of Trade Payables and _ various advances/borrowings, we are unable to comment on the extent to which such balances are payable.
- ix. The company has recognised deferred tax assets on account of carried forward unused tax losses and other taxable temporary differences for the year amounting to Rs. 1,984.44 Lakhs. The management of the company is confident that sufficient future taxable income will be available against which such deferred tax assets would get adjusted. However, in our opinion, in absence of convincing evidence that sufficient future taxable income will be available against which such deferred tax assets would get adjusted, such recognition is not in accordance with Indian Accounting Standard 12 "Income Taxes" (Ind AS 12). oe os
| P.MURALI | & | CO., | Tel. | : (91-40) 2332 6666, 2331 2554 | |
|---|---|---|---|---|---|
| 2339 3967, 2332 1470 | ||
|---|---|---|
| CHARTERED ACCOUNTANTS | 7 7 |
as |
| 6-3-655/2/3, SOMAJIGUDA, 'HYDERABAD - 500 082. INDIA |
Fax |
= (91-40) 2339 2474 [email protected] : |
| [email protected] |
Website : www.pmurali.com
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter Paragraph
The COVID -19 has impacted the financial performance and operating environment of "the Company" in financial year 2020-21. Though the pandemic is not expected to have any significant impact on the financial performance and operating environment of the Company in financial year 2021-22, the situation is still remains uncertain. The Company will continue to closely monitor any material changes 'to future economic conditions on account of COVID-19.
Our opinion is not modified in respect of this matter' .
IV. Management's Responsibilities for the Standalone Financial Results
These quarterly financial results as well as the year to date standalone financial results have been prepared on the basis of the interim financial statements. The Company's Board of Directors are responsible for the preparation of these financial results that give a true and fair view of the net loss and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.
ing the standalone financial results, the Board of Directors are responsible for ompany's ability to continue as a going concern, disclosing, as applicable,
| P.MURALI CO., & |
Tel. | —_: (91-40) 2332 6666, 2331 2554 | ||
|---|---|---|---|---|
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, |
ree | 1470 oeeo nara iste BOGE Vk |
||
| HYDERABAD - 500 082. INDIA |
[email protected] : |
Website : www.pmurali.com
matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
V, Auditor's Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the standalone financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit:conducted 'in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- "+ Identify and assess the risks of material misstatement of the standalone financial results, ' whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- ** Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- *» Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- ** Conclude on the appropriateness of the Board of Directors' use of the going concern . basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to inion. Our conclusions are based on the audit evidence obtained up to the
| CO., P.MURALI & |
Tel. | — : (91-40) 2332 6666, 2331 2554 |
|---|---|---|
| CHARTERED ACCOUNTANTS | 2339 3967, 2332 1470 | |
| 6-3-655/2/3, SOMAJIGUDA, | Fax | (91-40) 2339 2474 |
| HYDERABAD 500 082. INDIA - |
[email protected] —_: : |
|
| [email protected] | ||
| Website | www.pmurali.com : |
date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
" Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably -be thought to bear on our independence, and where applicable, related safeguards.
For P. Murali & Co., Chartered Accountants sore. Firm Registration No: 0 VISISA) > fw at P. Murali Mohana Rao \ * Partner — oS Membership No.023412 UDIN: 21023412AAAALK7266
Date: 30-06-2021 Place: Hyderabad
| ) TIL TEK | DCI | S SPOTWAVE | HANVERS | |||
|---|---|---|---|---|---|---|
| KAVVE telecom products limited |
||||||
| KAVVERI TELECOM PRODUCTS LIMITED Registered Office : Plot No 31 -36, 1st Floor, 1st Maln, 2nd Stage, Arakere Mico Layout, Bannerghatta Road, Bangalore, Karnataka - 560076 |
||||||
| S. | STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR QUARTER and YEAR ENDED 31st March, 2021 | ٠. | (Rs. In Lacs) | |||
| Particulars | 31.03.2021 | Quarter Ended 31.12.2020 |
31.03.2020 | Year to Date 31.03.2021 |
31.03.2020 | |
| 1 | Revenue From Operations | Audited | Unaudited | Audited | Audited | Audited |
| a) Net Sales / Revenue from Operations b) Other Operating Income |
20.25 | 0.01 | 62.20 | 73.29 | ||
| 2 | Total Revenue from Operations (Net) Other Income |
20.25 | 0.01 | 165.04 | ||
| Total Income (1+2) | 62.20 | 73.29 | 165.04 | |||
| з | 3.04 23.29 |
0.01 | 18.74 80.94 |
3.28 76.57 |
19.27 184.31 |
|
| Expenses a) Cost of materials consumed |
0.00 | 5.93 | 53.40 | 59.57 | ||
| b) Purchases of Stock - in - trade c) Changes in inventories of finished goods, work-in-progress and stock-in- |
$\bullet$ | $\sim$ | $\blacksquare$ | |||
| trade d) Employee benefits expenses |
20.25 | $\overline{a}$ | ٠ | 20.25 | ٠ | |
| e) Depreciation and amortisation expenses f) Other expenditure |
2.10 42.76 |
3.20 75.22 |
0.67 27.04 |
8.12 269.01 |
25.56 310.72 |
|
| - Operating Expenses | 13.71 | 14.82 | 46.07 | 50.82 | 105.11 | |
| Finance Costs Total Expenses |
331.15 409.98 |
331.13 424.38 |
350.67 430.38 |
1,324.52 1,726.13 |
1,344.63 1,845.60 |
|
| 4 s |
Profit / (Loss) before tax (1+2-3) Tax Expenses. |
(386.69) | (424.37) | (349.44) | (1,649.56) | (1,661.29) |
| Current Tax $\sim$ |
||||||
| 6 | Deferred Tax Net Profit (+) / Loss (-) from ordinary activities after tax (4-5) |
(61.37) (325.32) |
40.99 (465.36) |
176.46 (525.90) |
(43.35) (1,606.21) |
132.68 (1,793.96) |
| $\overline{7}$ 8 |
Extraordinary items (net of tax expenses) Net Profit $(*)$ / Loss (-) for the period $(6-7)$ |
(325.32) | (465.36) | |||
| 9 | Other Comprehensive Income A (i) Items that will not be reclassified to profit or loss |
(525.90) | (1,606.21) | (1,793.96) | ||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | $\sim$ ۰ |
$\overline{\phantom{a}}$ | ||||
| B (i) Items that will be reclassified to profit or loss | $\overline{\phantom{a}}$ | $\bullet$ | ||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | ||||||
| 10 | Total Comprehensive Income for the period (8+9) Earnings Per Equity Share - (for Continuing operation) |
(325.32) | (465.36) | (525.90) | (1,606.21) | (1,793.96) |
| Basic (Rs.) | (1.62) | (2.31) | (2.61) | (7.98) | (8.91) | |
| 11 | Diluted (Rs.) Earnings Per Equity Share - (for Discontinued operation) |
(1.62) | (2.31) | (2.61) | (7.98) | (8.91) |
| Basic (Rs.) Diluted (Rs.) |
÷ | |||||
| 12 Earnings Per Equity Share - (for Continuing & Discontinued operation) Basic (Rs.) |
(1.62) | $\overline{\phantom{a}}$ (2.31) |
$\cdot$ (2.61) |
(7.98) | (8.91) |
Plot No. 31 to 36, 1st Main, 2nd Stage, Arakere Mico Layout, Bannerghatta Road, Bangalore-560 076, Karnataka, India. Tel: +91-80-41215999, 41215960 /64 /67 Fax: +91-80-41215966 www.kaveritelecoms.com CIN ; L85110KA1996PLC019627
KAVVERI
felecom products linvited
Notes
1 The Company has adopted Indian Accounting Standards (IND AS) prescribed under section 133 of Companies Act, 2013, read with relevant rules ssucd there under. The date of transition of the Ind As is 1st April 2016 and accordingly, these audited financilas results have been prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 "Interim Financial Reporting" and other accounting principles generatly accepted in India, The impact of transition has been accounted for in the opening reserves and the comparaitive period have been remsiated accordingly.
- | 2 [he above audited financial results for the quarter ended 3 ist Match,2021 were taken on record at the meeting of the Board uf Directors held on 30th June, 2021 after being reviewed and recommended by the Audit committee,
- us The COVID -19 has impacted the financial performance and operating environment of "the Company" in financial year 2020 21. Though the pandemic 's not expected to have any significant impact on the financial performance and operating environment of the Company in financial year 2021-22, the situation is still remains uncertain. The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19
- 4There ts no segement wise income,only we are having single segment of income i.e telecom products services S The figures for the previous period/year have been regrouped/reclassified, wherever necessary.
Place : Bangalore
— Products Limited Date : 30.06.2021 = C Shiva K Reddy Whole Time Director For Kavveri Teleco
KAVVERI TELECOM PRODUCTS LIMITED
Standalone Balance Sheet as at 31st Mar, 2021
| KAVVERI TELECOM PRODUCTS LIMITED | |||
|---|---|---|---|
| Standalone Balance Sheet as at 31st Mar, 2021 | |||
| PRRTICULARS | Asat | As at | |
| ASSETS | NoteNo. | 31 Mar 2021 | 31 Mar 2020 |
| Non - Current Assets | |||
| Property, Plant & Equipment Intangible Assets |
1 1 |
63,114,023 6,898,144 |
82,082,357 |
| Capital Work in Progress | 5,416,969 | 14,830,490 5,416,969 |
|
| (i) Financial Assets (a) Investments |
|||
| (b) Loans and advances | 2 | 538,250,215 | 538,250,215 |
| Other Non Current Assets | 3 4 |
260,077,809 747,841,976 |
260,897,649 |
| Deferred Tax Asset | 5 | 198,443,636 | 748,668,978 194,108,642 |
| Subtotal | 1,820,042,772 | 1,844,255,300 | |
| Current Assets | |||
| Inventories | |||
| (i) Financial Assets | 6 | 560,963,476 | 574,814,889 |
| (a) Trade Receivables | 7 | 390,613,278 | 385,451,289 |
| (b) Cash and cash Equivalents | 8 | 3,974,869 | 3,036,990 |
| Other Current Assets | 9 | 43,473,719 | 45,722,382 |
| Subtotal | 999,025,342 | 1,009,025,550 | |
| Total | 2,819,068,114 | 2,853,280,850 | |
| EQUITY PARTICULARS |
As at 31 Mar2021 |
As at |
| 6 7 8 |
1,820,042,772 560,963,476 390,613,278 |
1,844,255,300 574,814,889 |
|---|---|---|
| 385,451,289 | ||
| 3,974,869 43,473,719 |
3,036,990 | |
| 9 | 45,722,382 | |
| 999,025,342 | 1,009,025,550 | |
| 2,819,068,114 | 2,853,280,850 | |
| As at | ||
| 31 Mar 2020 | ||
| 201,242,600 | ||
| 410,922,767 | ||
| 443,032,779 | 612,165,367 | |
| 12 | 224,141,996 | |
| - | = | |
| 224,141,996 | ||
| 14 | 1,912,063,106 | 1,779,6 16,874 |
| 15 | 117,541,110 | 118,212,211 |
| 16 | 89,288,828 | 85,472,474 |
| 33,000,295 | 33,671,928 | |
| 2,151,893,339 | 2,016,973,487 | |
| NoteNo. 10 11 13 AZ ReLLCoZN |
As at 31 Mar2021 201,242,600 241,790,179 224,141,996 224,141,996 BS |
| KAVVERI TELECOM PRODUCTS LIMITED | ||
|---|---|---|
| _ Standalone Statement of Cash flow for the period ended 31st March 2021 |
||
| Particulars | For the Year Ended | For the Year Ended |
| A.Cash flow from operating activities Profit / (Loss) before tax |
2021 | 2020 |
| Adjustments to reconcile profit before tax to net cash from / (Used in) operating activities, |
(166,950,293) | (166,128,543) |
| Depreciation on property, plant and equipment Amortisation and impairment of intangible assets |
18,968,334 7,932,346 |
19,896,466 |
| (Gain) /loss on sale of property, plant and equipment Finance income (including fair value change in financial Instruments) |
- (301,889) |
11,175,438 : |
| Finance costs (including fair value change in financial instruments) Adjustments on account of Prior period errors |
134,446,394 (6,517,289) |
(42,612) 134,463,391 |
| Operating Profit before working capital changes Working capital adjustments |
(12,422,397) | : (635,860) |
| Decrease/ (increase) in Inventory (Increase) / decrease in Trade Receivables |
13,851,413 (5,161,989) |
: 623,828 |
| Decrease/ (increase) in other Current assets Increase/ (decrease) in Trade Payables |
2,248,662 (671,101) |
(537,315) 433,529 |
| Increase/ (decrease) in short term provisions (Increase) /Decrease in Short term loans and advances |
(671,633) | 596,029 |
| Increase/ (decrease) Other Current Liabilities Sub Total Income tax paid |
3,816,355 13,411,707 |
4,842,628 5,958,699 |
| Net cash flows from operating activities (A) |
- 989,310 |
: 5,322,839 |
| B. Cash flow from investing activities | ||
| {(Increase)/ decrease in Capital-work-in-progress/Fixed Assets (Increase) / decrease in Non-current assets Proceeds from sale of assets |
: 827,002 |
(50,800) 180,243,121 |
| Interest received purchase of intangible assets |
- 301,889 |
= 42,612 |
| {Increase)/ decrease in Long term loans and advances | : 819,840 |
- (182,586,253) |
| Net cash flows from / (used in) investing activities (B) C Cash flow from financing activities |
1,948,731 | (2,351,320) |
| (Increase) /Decrease in long term loans and advances | ||
| Increase/ (decrease) in long term provisions Proceeds from long term loans and borrowings Interest paymietit |
- 132,446,232 |
(715,651) 132,446,232 |
| Net Cash flows from / (used in) Financing activities (C) __ | (134,446,394) (2,000,162) |
(134,463,391) (2,732,810) |
| Net increase / (decrease) in cash and cash equivalents (A+B+C) | 937,879 | 238,707 |
| Opening Balance of Cash Closing Bal |
3,036,990 3,974,869 |
2,798,282 3,036,990 |
| Components of Cash and Cash Equivalents Cash on Hand Balances with bank in current account |
371,350 3,603,519 |
383,296 2,653,694 |
P.MURALI & CO., | Tel. _ : (91-40) 2332 6666, 2331 2554
| CHARTERED ACCOUNTANTS | tA ane Vee aa |
|
|---|---|---|
| 6-3-655/2/3, SOMAJIGUDA, | - ax: |
"(91.40 ) |
| HYDERABAD - 500 082. INDIA |
( [email protected] |
|
| : [email protected] |
||
| Website | www.pmurali.com : |
|
Auditor's Report on consolidated audited quarterly and year to date financial results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
TO THE BOARD OF DIRECTORS OF "KAVVERI TELECOM PRODUCTS LIMITED"
I. Qualified Opinion
We have audited the accompanying Statement of Consolidated Financial Results of KAVVERI TELECOM PRODUCTS LIMITED ("Holding company") and its subsidiaries (holding company and its subsidiaries together referred to as "the Group") for the quarter ended 31st March, 2021 and for the period from 1st April, 2020 To 31st March, 2021 ("the Statement"), being submitted by the "Holding company" pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations"). Attention is drawn to the fact that the consolidated figures for the corresponding quarter ended 31st March, 2020 and the corresponding period from 1st April, 2019 To 31st March, 2020, as reported in these financial results have been approved by the holding company's Board of Directors.
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described.in the "Basis for Qualified Opinion paragraph" these Statements:
- a. includes the Unaudited results of the following entities:
- I. Kaveri Realty 5 Inc.
- II. Til Tek Antennae Inc. |
- III. Kavveri Technologies Inc
- IV. DCL- Digital Communications Ltd
- b. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, as amended; and
- c. gives a true and fair view, in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of consolidated total comprehensive income (comprising of net loss and other comprehensive income) and other financial information of "The Group" for the quarter and Y. 31st March, 2021 and for the period from 01-04-2020 to
P.MURALI & CO., Tel. — : (91-40) 2332 6666, 2331 2554
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, |
- ax |
aa "191-40 2a02 1470 oes (91-40) |
|
|---|---|---|---|
| HYDERABAD - 500 082. INDIA |
E-mail: [email protected] [email protected] |
||
| Website | www.pmurali.com : |
II. Basis for Qualified Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of "The Group", in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
-
- In the consolidated financial results, the results of following subsidiaries are not included for the quarter and Year ended 31st March, 2021.
- I. Kavveri Telecom Infrastructure Limited
- Il. EAICOM India Private Limited
- II. Kavveri Technologies Americans Inc.
- IV. New England Communications Systems Inc.
- V. Quality Communications Systems Inc.
- VI. Spotwave Wireless Ltd.
As the results/ financial information of the above mentioned subsidiaries are not considered in consolidation for the year ended 31.03.2021, the current year figures are not comparable to previous year.
- In respect of preparation of financial statements of "the group" on going concern basis, during the Year ended, "the group" has incurred a Net Loss (after tax) of Rs. 1,643.12 Lakhs resulting into accumulated losses of Rs. 11,650.10 Lakhs. "The group" has obligations towards fund-based borrowings and significant decrease in revenue over the years. These conditions indicate the existence of a material uncertainty that may cast significant doubt on "the group's" ability to continue as going concern and "the group" may be unable to realize its assets and discharge its liabilities in the normal course of business. The ultimate outcome of these matters is at present not ascertainable. Accordingly, we are unable to comment on the consequential impact, _ if any, on the accompanying consolidated financial statements.
We refer to "Basis for Qualified Opinion" in our Auditor's Report on Standalone financial results of KAVVERI TELECOM PRODUCTS LIMITED ("the Holding company") for the Quarter and year Ended 31st March, 2021 (which is reproduced below).
| PMURALI CO., & |
: (91-40) 2332 6666, 2331 2554 Tel. |
|---|---|
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, HYDERABAD - 500 082. INDIA |
2339 3967, 2332 1470 Fax: ; (91-40) 2339 2474 [email protected] : [email protected] |
| www.pmurali.com Website : |
"Tl. Basis for Qualified Opinion
- Material uncertainty related to Going Concern: During the year the company has incurred a Net Loss of Rs. 1,626.15 Lakhs resulting into accumulated losses of Rs. 10,487.78 Lakhs. The Company has obligations towards fund- based borrowings from banks aggregating to Rs, 19,389.83 Lakhs. There is significant decrease in revenue over the past few years, These conditions indicate the existence of a material uncertainty that may cast a-significant doubt on the Company's ability to continue as going concern and therefore may be unable to realize its assets and discharge its liabilities in the normal course of business. The ultimate outcome of these matters is at present not ascertainable. Accordingly we are unable to comment on the consequential impact, if any, on the accompanying standalone financial results.
- it. In relation to carrying value of investments held in by the company to its subsidiaries, which have been incurring losses and in some of these companies, net worth was fully or substantially eroded. Taking into account the management internal assessment and initiatives to be implemented to improve the profitability in the medium to long term, the management of the company is of the view that carrying value of investments are realizable at the value stated in the books. In the absence of fair valuation of these investments, we are unable to comment upon the carrying value and thus, we are unable to comment whether any provision for impairment in the value of investments is required.
- iii. The Company jis defaulted in repayment of dues to Banks for the year ended 31st March, 2021. All the loans outstanding were classified as NPA by the Banks. The balance outstanding as at 31.03.2021 is Rs. 19,389.83 Lakhs (Including Principal and Interest Provisions on the loans but excluding Penal Interest if any) as per books of account. In the absence of confirmation of balances from banks, we are unable to ascertain the actual dues to Banks as at 31.03.2021
- iv. In the absence of proof of physical verification of inventories during the year by the management, we are unable to comment on the discrepancies, if any, between the book records and physical stocks of inventories (Value of inventories as per books of account as at 31.03.2021 is Rs.5609.63 Lakhs).
- In the absence of proof of physical verification of Property, Plant and Equipment during the year by the management, we are unable to comment on the discrepancies, if any, between the book records and physical stocks. (Net Block of PPE of Rs.631.14 lakhs as per books of account as at 31.03.2021).
- OL The Company has long pending undisputed statutory dues towards ESI, PF & TDS (Net Payable of Rs.161.41Lakhs as per books of account as at 31.03.2021)
- Vii.
| P.MURALI CO & |
Tel. | : (91-40) 2332 6666, 2331 2554 | |
|---|---|---|---|
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, |
2339 3967, 2332 1470 | ||
| HYDERABAD - 500 082. INDIA |
Fax |
—: (91-40) 2339 2474 [email protected] : [email protected] |
|
| Website : Www.pmurali.com |
- viii. In the absence of confirmations of Trade Payables and_ various advances/borrowings, we are unable to comment on the extent to which such balances are payable.
- ix, The company has recognised deferred tax assets on account of carried forward unused tax losses and other taxable temporary differences for the year amounting to Rs. 1,984.44 Lakhs. The management of the company is confident that sufficient future taxable income will be available against which such deferred tax assets would get adjusted. However, in our opinion, in absence of convincing evidence that sufficient future taxable income will be available against which such deferred tax assets would get adjusted, such recognition is not in accordance with Indian Accounting Standard 12 "Income Taxes" (Ind AS 12").
Also, we refer to the Emphasis of: Matter Paragraph in Independent Auditor's Limited audit report on Audited Standalone Financial results of Kavveri Telecom Products Limited ("the Holding Company") for the Quarter and year Ended 31st March, 2021,(which is reproduced below).
"Emphasis of Matter Paragraph
As disclosed in Notes 3 to the Consolidated financial results COVID -19 has impacted the financial performance and operating environment of "the Company" in financial year — 2020-21. Though the pandemic is not expected to have any significant impact on the financial performance and operating environment of the Company in financial year 2021- 22, the situation is still remains uncertain, The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19".
Our opinion is not modified in respect of this matter."
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of "the Group" in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical Tesponsibilities in accordance with these coquabemenity and the Code of Ethics. -
_--7-~._ Emphasis of Matter Paragraph |
i, een oN ,f > ae aoolky isclosed in Notes 5 to the Consolidated financial results COVID -19 has impacted the
No. / & :
é
' se cae wah
| P.MURALI CO., & |
: (91-40) 2332 6666, 2331 2554 Tel. |
|---|---|
| CHARTERED ACCOUNTANTS | 2339 3967, 2332 1470 |
| © 6-3-655/2/3, SOMAJIGUDA, |
+ (91-40) 2339 2474 Fax |
| HYDERABAD - 500 082. INDIA |
+ piviurall. coeqmal. com e-nall |
| [email protected] | |
| www.pmurali.com Website : |
- Though the pandemic is not expected to have any significant impact on the financial performance and operating environment of the Company in financial year 2021-22, the situation is still remains uncertain. The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19.
Our opinion is not modified in respect of this matter' .
III. Management's Responsibilities for the Consolidated Financial Results
These quarterly financial results as well as the year to date consolidated financial results have been prepared on the basis of the interim financial statements.
The "Holding Company's" Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit/ loss and other comprehensive income and other financial information of "the Group" in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, 'Interim Financial Reporting' prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial results 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 the consolidated financial results by the Directors of the "Holding Company", as aforesaid.
In preparing the consolidated financial results, the respective Board of Directors of the companies included in "the Group" are responsible for assessing the ability of "the Group" to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in "the Group" are responsible for overseeing the financial reporting process of "the Group".
IV. Auditor's Responsibilities for the Audit of the Consolidated Financial Results
~ CG oS . on . ais , . a Hyder fina cial results as a whole are free from material misstatement, whether due to fraud or dyderabat . . . i \e\ error;'and to issue an auditor's report that includes our opinion. Reasonable assurance is a
a.
ee et Xe, S ~ fore 89 Aggy: ae SE ~~ AC
| P.MURALI CO., & |
(91-40) 2332 6666, 2331 2554 Tel. : |
|
|---|---|---|
| CHARTERED ACCOUNTANTS 6-3-655/2/3, SOMAJIGUDA, HYDERABAD - 500 082. INDIA |
oa seen 2392 1480 (04a * = Kae T-40) EAB [email protected] me : [email protected] www.pmurali.com Website : |
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- +. ** Identify and assess the risks of material misstatement of the consolidated financial results, whether due to fraud or error, design and perform audit procedures responsive ' to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
- " Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- "* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
- "+ Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material _ uncertainty exists related to events or conditions that may cast significant doubt on the ability of "the Group" to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause "the Group" to cease to continue as a going concern.
- "* Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.
- "* Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the entities within "the Group" to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial ts of which we are the independent auditors. For the other entities included in the ts/ Financial Results/ financial information have been furnished to us by the Directors. . reer ata Kel. Bee
P.MURALI&CO., _ Tel. _: (91-40) 2332 6666, 2331 2554
CHARTERED ACCOUNTANTS - (91-40) os ee asee Ve 6-3-655/2/3, SOMAJIGUDA, ax: (91- HYDERABAD - 500 082. INDIA E-mail : [email protected] [email protected] Website : www.pmurali.com
We communicate with those charged with governance of the "Holding Company" and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.
Other Matters
The consolidated Financial Results include the unaudited Financial Results of Subsidaries, whose interim Financial Statements/ Financial Results/ financial information reflect "The Group's" share of total assets of Rs. 2659.75 Lakhs as at 31st March, 2021, "The Group's" share of total revenue of Rs. 441.06 Lakhs and "The Group's" share of total net loss after tax of Rs. 16.96 Lakhs for the for the period from 1st April, 2020 To 31st March, 2021 respectively, as considered in the consolidated Financial Results. These unaudited interim Financial Statements/ Financial Results/ financial information have been furnished to us by 'the management and our opinion on the consolidated Financial Results, in so far as it relate to the amounts and disclosures included in respect of these subsidiaries, is based solely on such unaudited interim Financial Statements/ Financial Results / financial information.
For P. Murali & Co., Chartered Accountants Firm Registration No: 007.
P. Murali Mohana Rao ' Partner ~~ Membership No.023412 UDIN: 21023412AAAALL1999
Date: 30.06.2021 Place: Hyderabad
p. Ny kW
| TIL TEK | DCI | & BPOTWAVE | |||||
|---|---|---|---|---|---|---|---|
| indicat attalant course sign. | KAVVERI | ||||||
| KAVVERI | |||||||
| telecom products limited | |||||||
| KAVVERI TELECOM PRODUCTS LIMITED Registered Office : Plot No 31 -36, 1st Floor, 1st Main, 2nd Stage, Arakere Mico Layout, Bannerghatta Road, Bangalore, Karnataka - 560076 |
|||||||
| STATEMENT OF CONSOLIDATED AUDITED FINANCIAL RESULTS FOR QUARTER and YEAR ENDED 31st March, 2021 | |||||||
| S. Particulars Quarter Ended |
(Rs. In Lacs) | ||||||
| 31.03.2021 | 31.12.2020 | 31.03.2020 | Year to Date 31.03.2021 |
31.03,2020 | |||
| T Revenue From Operations |
Audited | Unaudited | Audited | Audited | Audited | ||
| a) Net Sales / Revenue from Operations b) Other Operating Income |
54.48 | 111.19 | 73.36 | 414.08 | 454.96 | ||
| Total Revenue from Operations (Net) | 4.52 59.00 |
13.29 | 41.74 | 103.55 | 78.76 | ||
| 2 Other Income Total Income (1+2) |
124.48 ¥. |
115.09 | 517.63 | 533.71 | |||
| 3. Expenses |
59.00 | 124.48 | 115.09 | ×. 517.63 |
533.71 | ||
| a) Cost of materials consumed | ÷ | ||||||
| b) Purchases of Stock - in - trade c) Changes in inventories of finished goods, work-in-progress and stock-in- |
14.69 | 20.20 $\overline{\phantom{a}}$ |
(16.69) (0.23) |
206.98 | 141.92 У. |
||
| $\sim$ | 10.90 | 20.25 | (0.23) | ||||
| trade | 7.10 | ||||||
| d) Employee benefits expenses | 23.25 | 26.75 | 27.39 | ||||
| e) Depreciation and amortisation expenses f) Other expenditure |
36.48 | 82.40 | ×. | 91.73 270.76 |
|||
| - Operating Expenses | 81.13 | $\overline{a}$ | |||||
| - Finance Costs Total Expenses |
354.62 | 55.33 331.13 |
50.79 350.67 |
266.39 1,347.99 |
|||
| Profit / (Loss) before tax (1+2-3) | 517.27 (458.27) |
515.81 | 422.82 | 2,204.10 | |||
| Tax Expenses. | (43.35) | (391.33) 41.00 |
(307.73) (1,347.50) |
(1,686.47) (43.35) |
|||
| Net Profit (+) / Loss (-) from ordinary activities after tax (4-5) Extraordinary items (net of tax expenses) |
(414.92) | (432.33) | 1,039.77 | (1,643.12) | |||
| Net Profit (+) / Loss (-) for the period (6-7) | (414.92) | ÷. (432.33) |
1,039.77 | ||||
| Other Comprehensive Income A (i) Items that will not be reclassified to profit or loss |
(1,643.12) | ||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ٠ | $\tilde{\phantom{a}}$ | |||
| B (i) Items that will be reclassified to profit or loss | $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ |
$\overline{\phantom{a}}$ | × | ×. | |||
| (ii) Income tax relating to items that will be reclassified to profit or loss | × | $\sim$ | $\sim$ | $\blacksquare$ | |||
| Total Comprehensive Income for the period (8+9) | (414.92) | $\blacksquare$ | |||||
| Earnings Per Equity Share - (for Continuing operation) | (432.33) | 1,039.77 | (1,643.12) | ||||
| Basic (Rs.) Diluted (Rs.) |
(2.06) | (2.15) | 5.17 | (8.16) | |||
| Earnings Per Equity Share - (for Discontinued operation) | (2.06) | (2.15) | 5.17 | (8.16) | 99.37 312.39 269.59 1,344.63 2,167.67 (1,633.95) 132.68 (1,766.63) (1,766.63) (1,766.63) (8.78) (8.78) |
||
| Basic (Rs.) | $\sim$ | ||||||
| Diluted (Rs.) | $\omega$ | ||||||
| Δ s 6 7 8 9 10 11 $12^{1}$ |
Earnings Per Equity Share - (for Continuing & Discontinued operation) Basic (Rs.) Diluted (Rs.) |
(2.06) | (2.15) | 5.17 | (8.16) | (8.78) |
Plot No. 37 to 36, 1st Main, 2nd Stage, Arakere Mico Layout, Bannerghatta Road, Bangalore-560 076, Karnataka, India. Tal: +91-80-41215999, 41215960 /64 /67 Fax: +91-80-41215966 www.kaveritelecoms.com CIN : L85110KA1996PLC019627
Notes
The Company has adopted Indian Accounting Standards (IND AS) prescribed under section 133 of Companies Act, 2013, read with relevant rules issued there under. The date of transition of the Ind As is 1st April 2016 and accordingly, these audited financial results have been prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 "Interim Financial Reporting" and other accounting principles renerally accepted in India, The impact of transition has been accounted for in the opening reserves and the comparative period have been reinstated accordingly.
E SPOT wave
nite rr nant Her KAVYERI ene
Whole Time Director
- nm In the consolidated financial results, the results of the following subsidiaries are not included.
- a) Kavveri Telecom Intrastructure Limited
- b) EAICOM India Private Limited.
- c) Kavveri Technologies Americans Inc.
- d) New England Communications Systems Inc.
- e) Quality Communications Systems Inc.
- f) Spotwave Wireless Ltd
In view of the above previous year consolidated financial results are not comparable with current year consolidated financial results.
- The above audited financial results for the quarter ended 31st March,2021 were taken on record at the meeting of the Board of Directors held on 30th June, 2021 after being reviewed and recommended by the Audit committee,
- The COVID -19 has impacted the financial performance and operating environment of "the Company' in financial year 2020-21. Though the pandemic is not expected to have any significant impact on the financial performance and operating environment of the Company in financial year 2021-22, the situation is still remains uncertain. The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19,
- There is no segement wise income,only we are having single segment of income i.e telecom products services
- The figures for the previous period/year have been regrouped/reclassified, wherever necessary.
Place : Bangalore Date : 30.06.2021
| Note | As at | As at 31 March, 2020 |
|---|---|---|
| I | 72,965,249 | 229,536A88 |
| 516,969 | ||
| 2 | - | 3,215,840 |
| 4 | 166,155,577 | 946,939,785 163,969,982 |
| 5 | - | s |
| 1,349,079,064 | ||
| 741,006,044 | ||
| 8 | 4,235,802 | 535,132,539 39,140,622 |
| 10 | 743,077,515 | 2 885,353,249 |
| 2,200,632,454 3,549,711,518 |
||
| Note | As at | |
| No. | 31 March, 2021 | 31 March, 2020 |
| 12 | 85,723,121 | 201,242,600 (42,514,821) |
| 158,727,779 | ||
| - | 7 | |
| 49,429,022 | ||
| 14 | 224,141,996 | 225,450,505 |
| 290,547,958 | "i 274,879,528 |
|
| 17 | 131,150,514 | 2,278,806,323 330,026,914 |
| 18 | 26,919,462 | 61,078,701 413,164,941 |
| 20 | 33,000,295 | 33,027,332 |
| 2,271,505,208 | 3,116,104,212 | |
| 2,849,018,887 | 3,549,711,518 | |
| No. 3 6 7 9 11 13 15 16 19 |
KAVVERE TELECOM PRODUCTS LIMITED Consolidated Balance Sheet as at 31st March, 2021 31 March, 2021 5,416,969 889,355,430 1,133,893,225 578,513,633 389,298,712 - 1,715,125,662 2,849,018,887 As at 201,242,600 286,965,721 66,405,962 : 2,001,78 1,737 78,653,200 |