Kalpataru Power Transmission Ltd.
|BSE: 522287||Sector: Infrastructure|
|NSE: KALPATPOWR||ISIN Code: INE220B01022|
|BSE 00:00 | 16 Sep||417.75||
|NSE 00:00 | 16 Sep||417.95||
|Mkt Cap.(Rs cr)||6,220|
|Mkt Cap.(Rs cr)||6220.30|
Kalpataru Power Transmission Ltd. (KALPATPOWR) - Auditors Report
Company auditors report
To the Members of
Kalpataru Power Transmission Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Kalpataru PowerTransmission Limited ("the Company") which comprise the standalone balancesheet as at March 31 2021 and the standalone statement of profit and loss (includingother comprehensive income) standalone statement of changes in equity and standalonestatement of cash flows for the year then ended and notes to the standalone financialstatements including a summary of the significant accounting policies and otherexplanatory information in which are included the financial statements of one jointoperation for the year ended on that date audited by other auditor of the Company'sjoint operation (hereinafter referred to as standalone financial statements').In our opinion and to the best of our information and according to the explanations givento us the aforesaid standalone financial statements give the information required by theCompanies Act 2013 ("Act") in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and profit and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements Section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained and evidence obtained by the other auditor in terms of their reports referred toin the Other Matter' paragraph below is sufficient and appropriate to provide abasis for our opinion on the Standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.
Information Other than the Standalone Financial Statements andAuditors' Report Thereon
The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and ourauditors' report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed and based on audit report of other auditor weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.
Management's and Board of Directors' Responsibility for theStandalone Financial Statements
The Company's management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese standalone financial statements that give a true and fair view of the state ofaffairs profit and other comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements the management andBoard of Directors are responsible for assessing the Company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the standalone financialstatements made by the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the standalone financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
We did not audit the standalone financial statements of one jointoperation included in the standalone financial statements of the Company whose standalonefinancial statements reflect total assets of RS. 88.94 crores as at March 31 2021 andtotal revenue of RS. 57.72 crores total net profit after tax of RS. 2.91 crores and cashinflows (net) of RS. 1.83 crores for the year ended on that date as considered in thestandalone financial statements. The said standalone financial statements and otherfinancial information have been audited by the other auditor whose report has beenfurnished to us and our opinion in so far as it relates to the amounts and disclosuresincluded in respect of joint operation is based solely on the report of such otherauditor.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016(the "Order") issued by the Central Government in terms of Section 143 (11) 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. (A) As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this Report are in agreement withthe books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".
(B) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
a) The Company has disclosed the impact of pending litigations as atMarch 31 2021 on its financial position in its standalone financial statements - ReferNote 30 to the standalone financial statements.
b) The Company has made provision as required under the applicable lawor accounting standards for material foreseeable losses on long-term contracts includingderivative contracts. Refer Note 33 and Note 44 to the standalone financial statements.
d) The disclosure in the standalone financial statements regardingholdings as well as dealings in specified bank notes during the period from November 082016 to December 30 2016 have not been made in these financial statements since they donot pertain to the financial year ended March 31 2021.
(C) With respect to the matter to be included in the Auditors'Report under Section 197(16): In our opinion and according to the information andexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of Section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down under Section197 of the Act. The Ministry of Corporate Affairs has not prescribed other details underSection 197(16) which are required to be commented upon by us.
Annexure A to the Independent Auditors' Report
With reference to the Annexure A referred to in the IndependentAuditors' Report to the members of the Company on the standalone financial statementsfor the year ended March 31 2021 we report the following:
(i) a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
b) The Company has a regular program of physical verification of itsfixed assets and by which all the fixed assets are verified in phased manner over a periodof three years. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. In accordance withthe policy certain fixed assets were physically verified by the Management during theyear and no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties as disclosed in Note 5(i) to the standalone financial statements are held inthe name of the Company. Immovable properties of land and buildings whose title deeds havebeen pledged as security for loans are held in the name of the Company based on theconfirmations directly received by us from lenders. In respect of immovable propertiesbeen taken on lease and disclosed as property plant and equipment in the standalonefinancial statements the lease arrangements are in the name of the Company.
(ii) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of account.
(iii) The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act. Therefore the provisions of Clause 3 (iii)(a)(iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
(iv) According to the information and explanations given to us theCompany has not given any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. Accordingly compliance under Section 185 of the Actis not applicable to the Company. In our opinion and according to the information andexplanations given to us the Company has made investment referred in Section 186(1) ofthe Act and have complied with the provisions of Section 186 of the Act to the extentapplicable.
(v) According to the information and explanations given to us theCompany has not accepted deposits during the year as per the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the rules framed thereunder. Accordingly paragrapRs. 3 (v) ofthe Order is not applicable to the Company.
(vi) Wehavebroadlyreviewedthebooksofaccountsmaintained by the Companypursuant to the rules prescribed by the Central Government for the maintenance of costrecords under Section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted/accrued inthe books of account in respect of undisputed statutory dues including provident fundemployees' state insurance income-tax duty of customs goods and services tax cessand other material statutory dues have been regularly deposited during the year with theappropriate authorities. According to the information and explanations given to us nomaterial undisputed amounts payable in respect of provident fund employees' stateinsurance income-tax duty of customs goods and services tax cess and other materialstatutory dues were in arrears as at March 31 2021 for a period of more than six monthsfrom the date they became payable.
b) According to the information and explanations given to us there areno dues of service tax duty of customs income tax value added tax goods and servicestax excise duty and other material statutory dues have not been deposited with theappropriate authorities on account of any dispute except as stated below:
* net of amount paid under protest / refund withheld by department
(viii) According to the information and explanations given to us theCompany has not defaulted in repayment of loans and borrowings to the banks financialinstitutions and dues to debenture holders. The Company did not have any outstanding loansand borrowings to Government.
(ix) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)during the year. In our opinion and according to the information and explanations given tous the term loans taken by the Company during the year have been applied for the purposefor which they are raised.
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the management.
(xi) According to the information and explanations given to us andbased on our examination of the records 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) According to the information and explanations given to us theCompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.Accordingly paragrapRs. 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by applicable accounting standards.
(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragrapRs. 3(xiv) of the Order is not applicableto the Company.
(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with them. AccordinglyparagrapRs. 3 (xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragrapRs. 3 (xvi) of the Order is not applicable to the Company.
Annexure B to the Independent Auditors' report on thestandalone financial statements of Kalpataru Power Transmission Limited for the year endedMarch 31 2021.
Report on the internal financial controls with reference to theaforesaid standalone financial statements under Clause (i) of Sub-Section 3 of Section 143of the Companies Act 2013
(Referred to in paragrapRs. 2(A) (f) under Report on Other Legaland Regulatory Requirements' Section of our report of even date)
We have audited the internal financial controls with reference tostandalone financial statements of Kalpataru Power Transmission Limited (the"Company") as of March 31 2021 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date. In our opinion theCompany has in all material respects adequate internal financial controls with referenceto financial statements and such internal financial controls were operating effectively asat March 31 2021 based on the internal financial controls with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (the"Guidance Note").
Management's Responsibility for Internal Financial Controls
The Company's management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as the "Act").
Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained andwhether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to financial statements.
Meaning of Internal Financial controls with Reference to FinancialStatements
A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includethose policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial controls with Reference toFinancial Statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.