Independent Auditors' Report
THE MEMBERS OF KIDUJA INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KIDUJA INDIA LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2014 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act 1956 ("the Act") read withthe general circular 15/2013 dated September 13 2013 of the Ministry of Corporate Affairsin respect of section 133 of the Companies Act 2013. This responsibility includes thedesign implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 the internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprincipje^jefjerally
accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2014;
(b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date; and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Emphasis of Matter
Without qualifying we draw your attention to Note No.23.1(a) regarding the financialstatements of the Company having been prepared on a going concern basis:
"the Company has been incurring losses since last four years and its net worth hasbeen fully eroded. The management is confident of reversing the losses in the coming yearswith the committed financial support from the Promoters. Accordingly these financialstatements have been prepared on a going concern basis."
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of Section 227 ofthe Act. we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.
2. As required by Section 227(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 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 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 Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of Section211 of the Act;
(e) On the basis of the written representations received from the directors as on 31stMarch 2014 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2014 from being appointed as a director interms of clause (g) of sub-section (1) of Section 274 of the Act.
|For LODHA & COMPANY |
|CHARTERED ACCOUNTANTS |
|Firm Registration No: 301051E |
|Place :Mumbai |
|Dated :27th June 2014 |
|R.P. BARADIYA |
|MEMBERSHIP NO: 44101 |
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF KIDUJA INDIALIMITED
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has carried out physical verification of all its fixed assets during theyear. In our opinion the frequency of verification is reasonable considering the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.
c) Substantial part of the fixed assets has been disposed off during the year.
2. a) The inventory of shares has been held in dematerialized form and verified withDemat account statements at reasonable intervals during the year.
b) The procedures for physical verification of the inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) The Company is maintaining proper records of inventory and no discrepancies werenoticed on physical verification.
3. a) During the year the Company has taken interest free loans from one companycovered in the register maintained under section 301 of the Act the terms and conditionswhereof are prima facie not prejudicial to the interest of the Company. Maximum amountdue during the year Rs 402450000 (including Opening Balance of Rs 394071000) and theyear-end balance is Rs 401850000.
b) During the year the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 301 ofthe Act.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company andnature of its business for the sale of shares except as slated in para no.7 below. Duringthe course of our audit no major weakness has been noticed in the internal controlsystem.
5. To the best of our knowledge and belief and according to the information andexplanations given to us there were no contracts or arrangements that needed to beentered in the register maintained under Section 301 of the Act.
6. No deposits within the meaning of directives issued by RBI (Reserve Bank of India)and Sections 58A and 58AA or any other relevant provisions of the Act and Rules framedthere under have been accepted by the Company.
7. The Company does not have any formal internal audit system. However as explainedeffective internal control is being exercised departmentally.
8. In respect of Company's activities the Central Government has presen maintenance ofcost records under Section 209 (1) (d) of the Act.
9. a) The Company is generally regular in depositing undisputed statutory duesincluding Provident Fund Investor Education and Protection Fund Employees' StateInsurance Income Tax Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty Cessand other material statutory dues applicable to the Company with the appropriateauthorities. No undisputed amounts payable n respect of the aforesaid statutory dues wereoutstanding as at the last day of the financial year for a period of more than six monthsfrom the date they became payable.
b) According to the information and explanations given to us there are no dues ofsales tax / income-tax / custom duty / wealth-tax / service tax / excise duty / cesswhich have not been deposited on account of any dispute except as under:
|Name of the Statute ||Nature of Dues ||Period to which the amount relates ||Amount (Rs.) ||Forum where dispute is pending |
|The Income Tax Act 1961 ||Income Tax ||AY. 2011-12 ||3529420 ||Income Tax Department CIT (Appeal) |
|The Income Tax Act. 1961 ||Interest on late payment of TDS ||AY. 2013-14 ||2.63925 ||Income Tax Department TDS Cell |
10 The accumulated losses of the Company as at 31st March 2014 exceed its net worth.The Company has incurred cash losses in the financial year ended on that date and in theimmediately preceding financial year.
11. The Company has not taken any loan from financial institutions or banks during theyear. Therefore the provisions of Clause 4(xi) of the Order are not applicable to theCompany.
12. During the year the Company has not granted loans and advances on the basis ofsecurity by way of pledge of shares debentures and other securities. Therefore theprovisions of Clause 4(xii) of the Order are not applicable to the Company.
13. The Company is not a chit fund or a nidhi / mutual benefit fund / societyTherefore the provisions of Clause 4(xiii) of the Order are not applicable to theCompany.
14. The Company has kept adequate records of its transactions and contracts in respectof dealing in shares securities and timely entries have been made therein. All the sharesand securities have been held in the name of the Company.
15. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from banks and financial institutions.
16. According to the information and explanations given to us the term loans have beenapplied for the purposes for which they were raised.
17. In our opinion funds of Rs 173358871 as at the close of the year raised on shortterm basis have been applied for long term investments.
18. During the year the Company has not made any preferential allotment of shares toparties and companies covered and recorded in the Register maintained under Section 301 ofthe Act.
19. The Company has not raised any money by way of issue of debentures.
20. The Company has not raised any money by way of public issue during the year or inthe recent past.
21. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing standards in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.
For LODHA & COMPANY CHARTERED ACCOUNTANTS
Firm Registration No: 301051E
| ||R.P. BARADIYA |
|Place :Mumbai ||PARTNER |
|Dated :27th June 2014 ||MEMBERSHIP NO: 44101 |