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Kamanwala Housing Construction Ltd.

BSE: 511131 Sector: Infrastructure
NSE: N.A. ISIN Code: INE344D01018
BSE LIVE 15:40 | 22 Sep 13.70 -0.52
(-3.66%)
OPEN

13.60

HIGH

14.10

LOW

13.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 13.60
PREVIOUS CLOSE 14.22
VOLUME 4830
52-Week high 18.65
52-Week low 11.60
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.60
CLOSE 14.22
VOLUME 4830
52-Week high 18.65
52-Week low 11.60
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kamanwala Housing Construction Ltd. (KAMANWALAHOUSIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF

KAMANWALA HOUSING CONSTRUCTION LIMITED.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of KamanwalaHousing Construction Limited (‘the Company’) which comprise the BalanceSheet as at 31 March 2015 the Statement of Profit and Loss and the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Standalone 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(i) in the case of the balance sheet of the state of affairs of the Company as at 31stMarch 2015;

(ii) in the case of the statement of profit and loss of the profit for the year endedon that date; and

(iii) in the case of the cash flow statement of the cash flows for the year ended onthat date.

Emphasis of Matters

We draw your attention to –

1. Note No. 1.8 relating to recognition of Rs 110.75 lacs as compensation receivablefrom related party Aspen Properties Pvt. Ltd. However the same is subject to confirmationfrom the party.

2. Note No. 1.9 relating to reconciliation of Service tax input credit and otheramounts as per the records with the Service Tax returns.

Our opinion is not qualified / modified in respect of this matter.

Other Matters

The financial statements and other financial information include the company’sproportionate share in jointly controlled assets of Rs 25.42 lacs in respect of anUnincorporated Joint venture which is certified by the management.

Our opinion is not qualified / modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") as amended issued by the Central Government of India in terms of Subsection(11) of Section 143 of the Act we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

a. we have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014

e. on the basis of the written representations received from the Directors as on 31March 2015 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2015 from being appointed as a Director in terms of Section164 (2) of the Act; and

f. 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:

• the Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 1.12.5 1.12.6 & 1.12.7 to thefinancial statements;

• the Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses on long-term contracts – ReferNote 1.7 1.10 & 1.11 to the financial statements; and

There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Majithia & Associates
Chartered Accountants
Firm Reg. No. 105871W
Bhavesh R. Majithia
Partner
Membership No. 048194
Place: Mumbai
Date: 29th May 2015.

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Paragraph 1 under heading of "Report on Other Legaland Regulatory Requirements" our report to the Members of M/s. Kamanwala HousingConstruction Limited (‘the Company') for the year ended 31st March 2015. We reportthat:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As per the Information and Explanation provided to us the Company has a regularprogramme of physical verification of its fixed assets by which fixed assets are verifiedin a phased manner over a period of three years. In accordance with this programmecertain fixed assets were verified during the year and no material discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.

2. (a) As per the Information and Explanation given to us the inventories have beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable.

(b) In our opinion the procedure followed by the management for such physicalverification is reasonable and adequate in relation to the size of the Company and natureof its business. (c) In our opinion and according to information and explanation given tous the Company is maintaining proper records of Inventory. No discrepancies were noticedon verification between physical inventory and the books records.

3. (a) The Company has granted loans to six parties covered in the register maintainedunder section 189 of the Companies Act 2013 (‘the Act’).

(b) In the case of the loans granted to the parties listed in the register maintainedunder Section 189 of the Act the borrowers have been regular in the payment of theinterest as stipulated. The terms of arrangements do not stipulate any repayment scheduleand the loans are repayable on demand. Accordingly paragraph (iii) (b) of the Order isnot applicable to the Company in respect of repayment of the principal amount.

(c) There are no overdue amounts of more than Rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under Section 189 of theAct.

4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business with regard to purchase of fixed assets and sale of goods andservices. During the course of audit we have not observed any continuing failure tocorrect major weakness in the internal control system.

5. The Company has not accepted any deposits from the public.

6. As per Companies (Cost Records and Audit) Rules 2014 provisions of Section 148(1)relating to cost records and cost audit are not applicable to the Company.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax wealth tax servicetax duty of customs value added tax cess and other material statutory dues were inarrears as at 31s March 2015 for a period of more than six months from the date theybecame payable except Sales Tax (VAT) to the extent of Rs 270458/- and Interest thereonof Rs 808745 which is outstanding for more than 6 months.

(b) According to information and explanations given to us the following dues of IncomeTax Sales Tax Service Tax and Value Added Tax have not been deposited by the Company onaccount of disputes:

Name of Statute Nature of dues Amount Period to which the amount relates (F.Y.) Forum where dispute is pending
(Rs)
MVAT Act 2002 Sales Tax 2093373 2006-07 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 1453613 2007-08 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 464699 2008-09 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 2368921 2010-11 Commissioner of Sales Tax (Appeal)
Income Tax Act 1961 Income Tax 37772628 2010-11 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 8227910 2011-12 Commissioner of Income Tax (Appeals)

(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the Investor Education and Protection Fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules there underhas been transferred to such fund within time.

8. The Company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses in the financial year and in the immediately precedingfinancial year.

9. The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.

10. In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.

11. In our opinion and according to the information and explanations given to us theterm loans taken were applied for the purpose for which the loans were obtained.

12. According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.

For Majithia & Associates
Chartered Accountants
Firm Reg. No. 105871W
Bhavesh R. Majithia
Partner
Membership No. 048194
Place: Mumbai
Date: 29th May 2015.