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Karma Energy Ltd.

BSE: 533451 Sector: Infrastructure
NSE: KARMAENG ISIN Code: INE725L01011
BSE LIVE 15:28 | 20 Nov 42.65 2.00
(4.92%)
OPEN

39.00

HIGH

42.65

LOW

39.00

NSE 15:27 | 20 Nov 40.45 1.90
(4.93%)
OPEN

39.10

HIGH

40.45

LOW

39.10

OPEN 39.00
PREVIOUS CLOSE 40.65
VOLUME 7601
52-Week high 74.85
52-Week low 33.00
P/E
Mkt Cap.(Rs cr) 49
Buy Price 42.65
Buy Qty 1842.00
Sell Price 0.00
Sell Qty 0.00
OPEN 39.00
CLOSE 40.65
VOLUME 7601
52-Week high 74.85
52-Week low 33.00
P/E
Mkt Cap.(Rs cr) 49
Buy Price 42.65
Buy Qty 1842.00
Sell Price 0.00
Sell Qty 0.00

Karma Energy Ltd. (KARMAENG) - Auditors Report

Company auditors report

To

The Board of Directors of

Karma Energy Limited

1. We have audited the accompanying standalone financial statements of KARMA ENERGYLIMITED which comprise the Balance Sheet as at 31st March 2017 the Statement of Profitand Loss and also the cash flow statement of the company for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 with respect to preparation and presentation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standard specified under section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibilityalso includes the maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the company and for preventing anddetecting the 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 accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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 thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable pronouncements issued by the Institute ofChartered Accountants of India. Those Standards and pronouncements require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 control systemover financial reporting and the operative effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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

Opinion

8. 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 March 31 2017 and its Profit and Loss and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

9. As required by "The Companies (Auditors Report) Order 2017" issued bythe Central Government of India in terms of sub section (11) of Section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A a statement on thematters specified in Paragraphs 3 and 4 of the Order.

10. 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 purposes of our audit.

(b) In our opinion proper books of account 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 isdisqualified 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 controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and (g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our knowledge andbelief and according to the explanations given to us: i. There were no pending litigationsagainst the company that impacts on its financial position as at March 31 2017. ii. TheCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses. iii. There were no amounts which were requiredto be transferred to the Investor Education and Protection Fund by the Company. iv. Thecompany had provided requisite disclosures in its financial statements as to holdings aswell as dealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016 these disclosures are in accordance with the books of accounts maintainedby the company.

For U B Sura & Co. For Shyam C. Agrawal & Co.
Chartered Accountants Chartered Accountants
U.B.Sura S. C. Agrawal
Proprietor Proprietor
Membership No: 32026 Membership No.31774
FRN 110620W F.R. No. 110243W
Place: Mumbai.
Date : 26.05.2017

ANNEXURE A TO THE AUDITORS' REPORT

(Referred to in paragraph 9 of the standalone Independent Auditors' Report of even dateto the Shareholders of KARMA ENERGY LIMITED on the standalone financial statementsas of and for the year ended on March 31 2017)

(i) (a) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) Fixed assets of the Company have been physically verified by the management onphase-wise manner during the year under audit. According to the information andexplanations given to us no material discrepancies have been noticed on such verification.In our opinion having regard to the size of the company and the nature of its assets theprogram of verification of fixed assets is reasonable.

(c) As per the information provided to us the title deeds of immovable properties arein the name of the company.

(ii) The inventories have been physically verified during the year by the management.According to the information and explanations provided to us no material discrepancieswere noticed on verification between the physical stocks and the book records.

(iii) In respect of the loans granted by the company covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act')

a. In our opinion the rate of interest and other terms and conditions on which theloans had been granted were not prima facie prejudicial to the interest of the Company.

b. In our opinion the borrowers have been regular in the payment of the principal andinterest as stipulated.

c. There are no overdue amounts in respect of the loans granted to body corporate.

(iv) Based on the information provided to us records as furnished to us to the bestof our knowledge the company has complied with the provisions of section 185 and 186 ofthe Companies Act 2013 in respect of loans investments guarantees and security.

(v) The company has not accepted any deposit from the public within meaning of Section73 to 76 of the Act or any relevant provisions of the Act and the Companies (Acceptance ofDeposit) Rules 2015 with respect to the deposits accepted from the public.

(vi) Maintenance of cost records pursuant to the Rules made by the Central Governmentfor the maintenance of cost records under Section 148 (1) of the Act is not applicable tothe company during the year under audit

(vii) (a) As per the records examined by us explanations provided to us the companyis regular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax service tax customsduty excise duty cess and other material statutory dues applicable to it. According toinformation and explanations provided to us no undisputed amounts payable in respect ofprovident fund employees' state insurance income tax sales tax service tax customsduty excise duty cess and other material statutory dues were in arrears as on 31st March2017 for a period more than six months from the date they became payable.

(b) According to the information and explanations given to us the following disputedamounts in respect of dues of income tax have not been deposited:

Nature of dues Amount Forum where dispute is pending
(Rs. in Lac)
Income Tax A.Y. 2013-14 103.86 CIT (Appeals)
Income Tax A.Y. 2014-15 94.69 CIT (Appeals)

(viii) According to the information and explanations given to us the company has notdefaulted in repayment of dues to any financial institutions or banks as at the balancesheet date.

(ix) The company has not raised monies by way of Public issue/follow on offer duringthe year. In our opinion and as per the information provided to us term loans wereapplied for the purpose for which said loans were taken.

(x) During the course of our examination of books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud on or by the company noticed or reported during the year nor have webeen informed of any such case by the management.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) The company is not a "Nidhi Company" and therefore clause (xii) of CAROis not applicable.

(xiii) As per the information and explanations in respect of Related Parties providedto us in our opinion the company has generally disclosed Related Party Transactions inaccordance with the applicable accounting standard.

(xiv) Based upon the procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theapplicable to the Company and hence not commented upon.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

(xvi) In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For U. B. Sura & Co. For Shyam C. Agrawal & Co.
Chartered Accountants Chartered Accountants
U. B. Sura Shyam C. Agrawal
Proprietor Proprietor
Membership No: 32026 Membership No: 31774
FRN 110620W FRN 110243W
Place: Mumbai
Date : May 26 2017

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 KARMAENERGY LIMITED ("the Company") as of 31 March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 31 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 U. B. Sura & Co. For Shyam C. Agrawal & Co.
Chartered Accountants Chartered Accountants
U. B. Sura Shyam C. Agrawal
Proprietor Proprietor
Membership No: 32026 Membership No: 31774
FRN 110620W FRN 110243W
Place: Mumbai
Date : May 26 2017