The Members of
Karda Constructions Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS Financial statements of KardaConstructions Limited ("the Company") which comprise the Balance Sheet asat 31 March 2018 and the Statement of Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Ind AS Financial Statement
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 cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions he Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that of the accounting recordsrelevant to the a true and fair view and are free from material misstatement whether dueto fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom 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 due to fraud or error. In making those risk assessmentsgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our auditopinion 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 of the Company as at 31 March 2018and its profit total comprehensive income its cash flows and the changes in equity forthe year ended on that date.
The Financial statement includes the Co March 2018 from its investment in partnershipfirms whose financial statements have not been audited by us. These reports have beenfurnished to us by the Management and our opinion on the Statement in so far as itrelates to t based solely on the reports of the other auditors.
Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit and on theconsideration of the reports of the Matter paragraph above we report to the extentapplicable 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 Cash Flow Statement 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 with theIndian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by 31 March 2018 from being appointed as a director in terms ofSection 164(2) of the Act.
f) With respect to the adequacy of the in and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the in our opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich 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.
2. As required by the companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government in B" a statement on the matters specified inparagraphs 3 and 4 of the Order.
|For M/s. J PL & Associates || |
|Chartered Accountants || |
|Firm Registration No. 132748W || |
|CA. Vipul Lathi || |
|Partner ||Place: Nashik |
|Membership No: 134897 ||Date: 28 may 2018 |
Annexure A to the Independent Auditors' Report
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Act.
We have audited the internal financial controls over financial reporting of KardaConstructions Limited ("the Company") as of 31 March 2018 in conjunction withour audit of the standal : the Company 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 controls based on "the established by the Company considering the essentialcomponents of Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India". These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's in' our audit. Weconducted our audit in accordance with the Financial Reporting (the "GuidanceNote") issued by the Institute of Chartered Accountants of India and the Standards onAuditing prescribed under Section 143(10) of the Act to the extent applicable to an auditof internal financial controls.
Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about established andmaintained and if such controls.
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 theauditor's judgment including the assessment of the risks statements whether due to fraudor 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 l statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could InherentLimitations of Internal Financial Controls Over Financial Reporting Because of theinherent limitations of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not to future periods are subject to therisk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial as at 31 March 2018 based on"the internal control over internal control stated in Over Financial Reporting issuedby the Institute of Chartered Accountants of India".
|For M/s. J PL & Associates ||CA. Vipul Lathi || |
|Chartered Accountants ||Partner ||Place: Nashik |
|Firm Registration No. 132748W ||Membership No: 134897 ||Date:28th May 2018 |
Annexure B to the Independent Auditors' Report
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report of even date)
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:
(i) In respect of Fixed Assets
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.
(c) According to the information and explanations given to us records examined by usand based on the examination of the registered title deeds provided to us we report thatthe title deeds comprising all the immovable properties of buildings which are freeholdare held in the name of the Company as at the balance sheet date. The company does nothave any immovable properties taken on lease which need to be disclosed as fixed asset inthe financial statements.
(ii) In respect of Inventories
In our opinion and according to the information and explanations given to us havingregard to the nature of title deeds site visits by the Management and completion bycompetent persons are at reasonable intervals and no material discrepancies were noticedon physical verification.
(iii) Compliance under section 189 of The Companies Act 2013
As informed by the company company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.
(a) Company has not granted such loan during the period
(b) As informed to us the Company has not granted any loans secured or unsecuredhence the question of repayment of loans does not arise. Consequently the said sub clauseof the Order is not applicable to the Company.
(c) As informed to us the Company has not granted any loans secured or unsecuredduring the year under audit hence the question of overdue amount of loans does not arise.Consequently the said sub clause of the Order is not applicable to the Company.
(iv) Compliance under section 185 and 186 of The Companies Act 2013
In our opinion and according to the information and explanations given to us there areno loans guarantees and securities granted during the year in respect of whichprovisions of Section 185 and 186 of the Companies Act 2013 are applicable and hence notcommented upon. Based on our audit procedures performed for the purpose of reporting thetrue and fair view of the explanations given by the management the Company has compliedwith provisions of Section 186 of the investments and providing guarantees and securitiesas applicable.
(v) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framedthereunder while accepting Deposits According to the information and explanations given tous the Company has not accepted any deposit during the year and hence reporting underclause (v) of paragraph 3 of the Order is not applicable to the Company.
(vi) Maintenance of cost records
The maintenance of cost records has been specified by he Central Government undersection 148(1) if the Act. We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost by the Central Government under sub-section (1) ofopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.
(vii) Deposit of Statutory Dues
(a) According to information given to us and the books examined by us the company hasgenerally been regular in depositing the undisputed statutory dues namely Income TaxProfession Tax Provident Fund Sales Tax Service tax Goods and Service Tax cess andother statutory dues with the appropriate authorities. According to information given tous there are no arrears of outstanding statutory dues as at the last day of the periodend for a period of more than six months from the date they became payable.
(b) As informed to us by the management of the Company there were no disputes pendingwith revenue authorities regarding any duty or tax payable except for the amountsmentioned below:
(INR in Lakhs)
|Sr. No. ||Nature of Statute ||Details ||Period ||Demand Amount ||Amount Paid ||Forum where dispute is pending |
|1 ||Income Tax Act 1961 ||Demand u/s 143(3) ||AY 2014-15 ||31.28 ||4.69 ||CIT (Appeals) |
|2 ||Income Tax Act 1961 ||Demand u/s 143(3) ||AY 2015-16 ||203.90 ||29.48 ||CIT (Appeals) |
|3 ||Sales Tax ||Sec 26 of M VAT Act ||FY 2012-13 ||58.45 ||- ||DCST (Appeals) |
|4 ||Sales Tax ||Sec 26 of M VAT Act ||FY 2013-14 ||14.03 ||0.78 ||DCST (Appeals) |
(viii) Repayment of Loans and Borrowings
In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions and banks and dues to debenture holders. The Company has not taken any loanfrom Government.
(ix) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
The company has raised money by way of initial public offer (including debtinstruments) and term loans during the year. In our opinion and according to theinformation and explanations given to us the proceeds of initial public offer and termloans have been applied by the Company for the purposes for which they were raised otherthan temporary deployment pending application of proceeds.
(x) Reporting of Fraud During the Period
To the best of our knowledge and according to the information and explanations given tous no fraud by the Company and no material fraud on the Company by its officers oremployees has been noticed or reported during the year.
(xi) Managerial Remuneration
In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
(xii) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
The Company is not a Nidhi Company and hence reporting under clause (xii) of paragraph3 of the Order is not applicable.
(xiii) Related party compliance with Section 177 and 188 of Companies Act 2013
In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the applicable accounting standards.
(xiv) Compliance under section 42 of Companies Act - 2013 regarding Private placementof Shares or Debentures
During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of paragraph 3 of the Order is not applicable to the Company.
(xv) Compliance under section 192 of Companies Act 2013
In our opinion and according to the information and explanations given to us duringthe year the Company has not entered into any non-cash transactions with its directors ordirectors of its subsidiaries or persons connected with them and hence provisions ofsection 192 of the Companies Act 2013 are not applicable.
(xvi) Requirement of Registration under 45-IA of Reserve Bank of India Act 1934
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
For M/s. JPL & Associates
Firm Registration No. 132748W
CA. Vipul Lathi
Membership No: 134897
Date:28th May 2018