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Kaushalya Infrastructure Development Corpn Ltd.

BSE: 532925 Sector: Infrastructure
NSE: KAUSHALYA ISIN Code: INE234I01010
BSE LIVE 12:29 | 06 Nov Stock Is Not Traded.
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OPEN 2.72
PREVIOUS CLOSE 2.86
VOLUME 605
52-Week high 6.49
52-Week low 2.60
P/E 3.73
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.72
Sell Qty 21953.00
OPEN 2.72
CLOSE 2.86
VOLUME 605
52-Week high 6.49
52-Week low 2.60
P/E 3.73
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.72
Sell Qty 21953.00

Kaushalya Infrastructure Development Corpn Ltd. (KAUSHALYA) - Auditors Report

Company auditors report

To

The Members of

KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of KAUSHALYAINFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED ("the company") whichcomprise the Balance Sheet as at 31 March 2016 the Statement of Profit and Loss and theCash Flow Statement for the year then ended and a summary of significant accountingpolicies and 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 preparationand presentation of these Standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement 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 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 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 misstatement.

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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.

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

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 2016 its profit/loss and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein the Annexure "A" a statement on the matters Specified in paragraphs 3 and 4of 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 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 Cash Flow Statement dealtwith 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 written representations received from the directors as on 31 March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2016 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to adequacy of internal financial controls over financial reporting ofthe company and the operating effectiveness of such controls refer to our separate reportin Annexure "B".

g) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company discloses the impact of pending litigations on its financial position inits financial statements - Refer Note 25.1 and 25.9to the financial statements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

For MONU JAIN & COMPANY
Chartered Accountants
Firm Registration No: 327900E
Monu Jain
Place: Kolkata Proprietor
Date: 23rd May 2016 Membership No: 302721

Annexure "A" to Independent Auditor's Report

(Referred to in Paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our Report of even date)

1) In respect of fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets in soft copy format.

b) According to the information and explanations given to us fixed assets have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Nomaterial discrepancies were noticed on such verification.

c) Based upon the audit procedure performed and according to the records of thecompany the title deeds of all the immovable properties are held in the name of theCompany.

2) As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable and there is no material discrepancies found during the previous year.

3) According to information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms or other parties Covered in theregister maintained under section 189 of the Companies Act 2013.

4) In our opinion and according to information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescover under section 185 of the Act. In respect of investments made by the Company theProvisions of section 186 of the Act have been complied with.

5) According to information and explanations given to us the company has not acceptedany deposit from the public during the year in terms of the provision of section 73 to 76of the Act or any other relevant provisions of the Companies Act 2013 and the rules madethere under.

6) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.

7) In respect of Statutory due:

a) According to the information and explanations given to us the Company on variousinstances has delayed the deposit of the undisputed statutory dues including ProvidentFund employees state insurance Income-tax Tax deducted at sources Tax collected atsource Professional Tax Sales Tax value added tax (VAT) Wealth Tax Service TaxCustom Duty Excise Duty Cess and other material statutory dues applicable to it.According to the information and explanations given to us undisputed amounts payable inrespect of Service Tax '18807798/- Provident Fund '5168/- and ESI Rs.11171/- wereoutstanding as at 31st March 2016 for a period of more than six month from the date theybecome payable.

b) According to the information and explanations given to us there is no amountdisputed in respect of Income- tax Value Added Tax Sales Tax Excise Duty Custom DutyService Tax and Cess. The particulars of dues of Income Tax Service Tax & VAT as at31st March 2016 which have not been deposited on account of dispute are as follows:

Name of the Statute Nature of Dues Amount (in Lacs) Period to which the amount relates Forum where dispute is pending
Income Tax Act Income tax 0.91 Asst. Year 2005-06 I.T. Appellate Tribunal
Income Tax Act Income tax 28.47 Asst. Year 2007-08 I.T. Appellate Tribunal
Income Tax Act Income tax 30.27 Asst. Year 2009-10 I.T. Appellate Tribunal
Income Tax Act Income tax 37.61 Asst. Year 2010-11 I.T. Appellate Tribunal
Income Tax Act Income tax 1.91 Asst. Year 2011-12 I.T. Appellate Tribunal
Income Tax Act Income tax 51.43 Asst. Year 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Act Income tax 278.06 Asst. Year 2013-14 Commissioner of Income Tax (Appeals)
Income Tax Act Interest on TDS & Late Fees 2.46 Asst. Year 2015-16 TDS Circle-II
Income Tax Act Short Deduction of TDS & Late Fees 3.02 Asst. Year 2014-15 TDS Circle-II
Income Tax Act Interest & Short Deduction of TDS & Late Fees 3.30 Asst. Year 2013-14 TDS Circle-II
Income Tax Act Interest on TDS 15.75 Asst. Year 2012-13 TDS Circle-II
The Central Excise Act 1944 Service Tax 421.84 From 1st april2010- 31st December 2012 under VCES Service Tax CommisionerateKolkata
The WB.VAT Act 2003 Vat 87.42 Financial Year 2006-07 Revision Board Kolkata
The WB.VAT Act2003 Vat 89.53 Financial Year 2007-08 Revision Board Kolkata
The WB.VAT Act2003 Vat 817.10 Financial Year 2008-09 Revision Board Kolkata
The WB.VAT Act2003 Vat 6.60 Financial Year 2009-10 Sr. Joint Commissoner Appeal Kolkata
The WB.VAT Act2003 Vat 0.35 Financial Year 2010-11 Sr. Joint Commissoner Appeal Kolkata
The WB.VAT Act2003 Vat 65.35 Financial Year 2011-12 Sr. Joint Commissoner Appeal Kolkata

8) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the company has defaulted in repayment of loan& borrowings dues to bank. The bankers of the Company i.e. State Bank of India andIndian Overseas Bank have sent Demand Notice/Notice U/s. 13(2) of SARFAESI Act calling upthe entire loan with outstanding interest. The company has not issued any debenture atbalance sheet date.

9) The company has raised moneys by way of initial public offer in the financial year2007-08.

10) In our opinion and according to the information and explanations given to us nofraud on or by the Company by its officers or employees has been noticed or reportedduring the Year.

11) In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act.

12) In our opinion the company is not a Nidhi Company. Therefore the Provision ofclause 3(xii) of the order are not applicable to the Company.

13) In our Opinion all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year therefore the Provision ofclause 3(xiv) of the order are not applicable to the Company under review.

15) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has notentered into any non-cash transaction with directors or persons connected with himtherefore reporting under clause 3(xv) of the Order are not applicable.

16) In our opinion the Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For MONU JAIN & COMPANY
Chartered Accountants
Firm Registration No: 327900E
Monu Jain
Place: Kolkata Proprietor
Date: 23rd Ma y 2016 Membership No: 302721

(Referred to in Paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our Report of even date)

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 KAUSHALYAINFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED ("the company") as of March31 2016 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting Issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's 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 reading 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 authorization ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a materials 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 2016 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 MONU JAIN & COMPANY
Chartered Accountants
Firm Registration No: 327900E
Monu Jain
Place: Kolkata Proprietor
Date: 23rd May 2016 Membership No: 302721