You are here » Home » Companies » Company Overview » Kamanwala Housing Construction Ltd

Kamanwala Housing Construction Ltd.

BSE: 511131 Sector: Infrastructure
NSE: N.A. ISIN Code: INE344D01018
BSE 15:28 | 23 Feb 14.50 0.40
(2.84%)
OPEN

13.40

HIGH

14.80

LOW

13.40

NSE 05:30 | 01 Jan Kamanwala Housing Construction Ltd
OPEN 13.40
PREVIOUS CLOSE 14.10
VOLUME 4246
52-Week high 27.25
52-Week low 11.60
P/E
Mkt Cap.(Rs cr) 20
Buy Price 14.50
Buy Qty 54.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.40
CLOSE 14.10
VOLUME 4246
52-Week high 27.25
52-Week low 11.60
P/E
Mkt Cap.(Rs cr) 20
Buy Price 14.50
Buy Qty 54.00
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 Kamanwala HousingConstruction Limited (‘the Company') which comprises the Standalone Balance Sheet asat 31st March 2017 the statement of Standalone Profit and Loss and the Standalone CashFlow Statement for the year then ended and a summary of significant accounting policiesand other explanatory 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe 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 financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year on that date.

Other Matters

The financial statements and other financial information include the company'sproportionate share of Rs. 25.43 lacs in jointly controlled assets in respect of anUnincorporated Joint venture which is certified by the management.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of subsection (11) ofsection 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 sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by 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 31stMarch 2017 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (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"; and

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:

• the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 1.18.5 1.18.6 1.18.71.18.8 1.18.91.18.10 and 1.18.11 to the standalone financial statements;

• the Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses on long-term contracts - Refer Note1.9 1.10 1.12 & 1.13 to the standalone financial statements; and

• there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

• The Company has provided requisite

disclosures in its standalone financial statements as to holding as well as dealings inspecified bank notes during the period from 08th November 2016 to 30th December 2016 andthese are in accordance with the books of accounts maintained by the company. Refer noteno 33 to the standalone financial statements "Annexure-A" to the Auditor'sReport

The Annexure referred to in Paragraph 1 under heading of "Report on Other Legaland Regulatory Requirements" our report to the members of Kamanwala HousingConstruction Limited (‘the Company') for the year ended 31st March 2017 we reportthat:

i. (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.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. 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. No material discrepancy was noticed on physical verificationof stocks by the management as compared to book records.

iii. The Company has granted loans to parties covered in the register maintained undersection 189 of the Companies Act 2013 (‘the Act').

(a) (a) In our opinion the rate of interest and other terms and conditions on whichthe loans had been granted to the bodies corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.

(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 clause (iii) (b) of the paragraph 3 ofthe Order is not applicable to the Company in respect of repayment of the principalamount.

(c) There are no overdue amounts in respect of the loans granted to the bodiescorporate listed in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans and investments made. The company has not given any guarantees and thereforeprovisions of clause (iv) of paragraph 3 of the order in respect of guarantees is notapplicable to the Company.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause (v) of paragraph3 of the Order are not applicable to the Company.

vi. According to the information and explanations given to us as per the Companies(Cost records and audit) Rules 2015 provisions of sub-section

(1) of section 148 of the Act relating to maintenance of cost records are applicableto the Company and the Company has maintained the necessary records as required under theAct.

vii. (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 and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax service tax valueadded tax and other material statutory dues were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable.

(b) According to information and explanations given to us the following dues of incometax sales tax and value added tax have not been deposited by the Company on account ofdisputes:

Name of Statute Nature of dues Amoun t (Rs. In lacs) Period to which the amount relates (FY) Forum where dispute is pending
MVAT Act 2002 Sales Tax 20.93 2006-07 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 14.53 2007-08 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 4.64 2008-09 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 23.69 2010-11 Commissioner of Sales Tax (Appeal)
MVAT Act 2002 Sales Tax 74.56 2011-12 Commissioner of Sales Tax (Appeal)
Income Tax Act 1961 Income Tax 377.72 2010-11 Assistant Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 38.75 2011-12 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 707.46 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 172.14 2013-14 Commissioner of Income Tax (Appeals)
Service Tax Service Tax 35.79 2011-12 to 2014-15 Commissioner of Service Tax (Appeals)
Service Tax Service Tax 24.02 2012- 13 2013- 14 2014- 15 Commissioner of Service Tax (Appeals)

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institutions bank ordebenture holders.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Therefore theprovisions of Clause (ix) of paragraph 3 of the Order are not applicable to the Company.

x. In our opinion and according to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the financial year covered by our audit.

xi. According to the information and explanations give to us and based on ourexamination of the books of accounts of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore the provisions of Clause (xii) of paragraph 3of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the books of account of the Company transactions with the related partiesare in compliance with sections 177 and 188 of the Act where ever applicable and detailsof such transactions have been disclosed in the financial statements as required by theapplicable accounting standards and the Act.

xiv. According to the information and explanations give to us and based on ourexamination of the books of account of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the financial year covered by our audit. Therefore the provisions ofClause (xiv) of paragraph 3 of the Order are not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the books of account of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Therefore theprovisions of Clause (xv) of paragraph 3 of the Order are not applicable to the Company.

xvi. In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45/IA of the Reserve Bank of IndiaAct 1934.

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of KamanwalaHousing Construction Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that 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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgment 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Majithia & Associates
Chartered Accountants
Firm Reg. No. 105871W
Bhavesh R. Majithia
Place: Mumbai Partner
Date: 29th May 2017 Membership No. 048194