The Members of
Kaiser Corporation Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of KaiserCorporation Limited("the Company")which comprise the Balance Sheet as at 31March 2018 the Statement of Profit and Loss(including other comprehensive income)theStatement of Cash Flow and the Statement of Changes in Equity for the year then ended anda summary of significant accounting policies and other explanatory information(hereinafter referred to as Ind AS financial statements).
Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other Comprehensive Income) cashflows and changes in equity of the Company in accordance with the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for the 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 thereunder and the Order issued under section143(11) of the Act.
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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind
AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes 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 standalone Ind AS 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 Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 and its profit including other comprehensive incomeits cashflows and the changes in equity 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 sub-section (11) of Section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act based on our audit 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 (including Other ComprehensiveIncome) the Statement of Cash Flow and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of the written representations received from the directors as on 31March 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 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 2014asamendedin ouropinion and to the best of our information and according to the explanations given to us;
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
FOR SURESH SURANA & ASSOCIATES LLP
Firm's Reg. No. 121750W/W-100010
Membership No.: 102306
Date: 29 May 2018
ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date)
(I) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) According to information and explanations given to us the fixed assets have beenphysically verified by the management according to the regular programme of periodicalverification in a phased manner which in our opinion is reasonable having regard to thesize of the Company and nature of its assets. No material discrepancies were noticed onsuch verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company does not have immovable propertiesand hence paragraph 3(i)(c) of the Order is not applicable to the Company.
(ii) In our opinion and according to information and explanations given to us physicalverification of inventory has been conducted at reasonable intervals by the management. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of stock as compared to book records were not material and the samehave been properly dealt with in the books of account.
(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the Paragraph 3 (iii) (a) 3 (iii) (b) and 3 (iii)(c) of the Order are not applicable to the Company.
(iv) According to information and explanations given to us the Company has not madeinvestments granted loan or given security during the year. However the Company hasgiven guarantees to bank for loan taken by the subsidiary Company. As the section 185 ofthe Companies Act 2013 is not applicable for guarantee given on behalf of subsidiaryCompany; accordingly paragraph 3(iv) of the Order is not applicable to the Company.
(v) The Company has not accepted any deposits during the year from the public to whichthe directives issued by the Reserve Bank of India and the provisions of Sections73 to 76and any other relevant provisions of the Act and the rules framed thereunder apply.
(vi) According to the information and explanations given to us the maintenance of costrecords pursuant to Rules made by the Central Government for the maintenance of costrecords under Sub-Section (1) of Section 148 of the Act are not applicable to the Companyas it satisfy the condition mentioned in sub clause (B) of Section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income tax sales tax goods and service tax value added taxcess and any other statutory dues with the appropriate authorities. There are no arrearsof outstanding statutory dues as at the 31 March 2018 for a period of more than sixmonths from the date they became payable. As informed statutory dues in the nature ofduty of customs duty of excise and service tax are not applicable to the Company.
b) According to information and explanations given to us there are no dues on accountof income tax sales tax value added tax and cess which have not been deposited with theappropriate authorities on account of any dispute.
(viii) In our opinion and according to information and explanations given to us theCompany has no borrowings from banks financial institutions government or by way ofdebentures. Accordingly paragraph 3(viii) of the Order is not applicable to the Company.
(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans. Accordingly paragraph 3(ix) ofthe Order is not applicable to the Company.
(x) To the best of knowledge and according to the information and explanations given tous no fraud by the Company or any fraud on the Company by its officers or employees havebeen noticed or reported during the year.
(xi) According to information and explanations given 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 of the Act.
(xii) The Company is not a Nidhi Company. Accordingly the paragraph 3(xii) ofthe Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby the applicable accounting standards.
(xiv) The Company has not made preferential allotment or private placement of shares orfully or partly paid convertible debentures during the year. Accordingly the paragraph3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us the Company has notentered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
FOR SURESH SURANA & ASSOCIATES LLP
Firm's Reg. No. 121750W/W-100010
Membership No.: 102306
Date: 29 May 2018