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Karma Energy Ltd.

BSE: 533451 Sector: Infrastructure
NSE: KARMAENG ISIN Code: INE725L01011
BSE 00:00 | 18 Sep 23.60 -0.90
(-3.67%)
OPEN

23.55

HIGH

25.60

LOW

23.55

NSE 00:00 | 18 Sep 23.30 -1.20
(-4.90%)
OPEN

24.50

HIGH

24.50

LOW

23.30

OPEN 23.55
PREVIOUS CLOSE 24.50
VOLUME 1047
52-Week high 59.70
52-Week low 20.10
P/E
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.55
CLOSE 24.50
VOLUME 1047
52-Week high 59.70
52-Week low 20.10
P/E
Mkt Cap.(Rs cr) 27
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Karma Energy Ltd. (KARMAENG) - Auditors Report

Company auditors report

To the Members of Karma Energy Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Karma EnergyLimited (‘the Company') which comprise the standalone balance sheet as at 31stMarch 2018 the standalone statement of Profit and loss (including other comprehensiveincome) the standalone statement of cash flows and the standalone statement of changes inequity for the year then ended and a summary of the signi cant accounting policies andother 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 preparation ofthese standalone financial statements that give a true and fair view of the standalonefinancial position standalone financial performance including other comprehensive incomestandalone cash flows and standalone changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issuedthere under.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safe guarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internalfinancialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of theStandalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial 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 there under.

We conducted our audit in accordance with the Standards on Auditing speci ed 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 Standalonefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalonefinancial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalonefinancial statements whether due to fraud or error. In making those riskassessments the auditor considers internalfinancial control relevant to the Company'spreparation of the Standalonefinancial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes 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 Standalonefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalonefinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalonefinancial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31st March 2018 and its standalone Profit (including othercomprehensive income) its standalone cash flows and the standalone changes in equity forthe year ended on that date.

Other matters

The comparativefinancial information of the Company for the transition date as at 1stApril 2016 and year ended March 31 2017 included in these standalone Ind ASfinancialstatements are based on the statutoryfinancial statements prepared in accordance with theCompanies (Accounting Standards) Rules 2006 audited by the predecessor auditor whosereport for the year ended March 31 2016 and March 31 2017 dated 25th May 2016 and datedMay 26 2017 respectively expressed an unmodi ed opinion on those standalonefinancialstatements and have been restated to comply with Ind AS. Adjustments made to thepreviously issued saidfinancial information prepared in accordance with the Companies(Accounting Standards) Rules 2006 to comply with Ind AS have been audited by us. Ouropinion is not modi ed in respect of the above matter.

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 43(11) of the Act we givein the Annexure A a statement on the matters speci ed in the paragraph 3 and 4 of theorder.

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 knflowledge 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 standalone balance sheet the statement of standalone Profit and loss includingother comprehensive income the standalone statement of cash flows and the standalonestatement of changes in equity dealt with by this Report are in agreement with the booksof account;

(d) in our opinion the aforesaid standalonefinancial statements comply with the IndianAccounting Standards speci ed under Section 133 of the Act read with relevant rule issuedthere under;

(e) on the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors is disquali edas on 31st March 2018 from being appointed as a director in terms of Section 164 (2) ofthe Act;

(f) with respect to the adequacy of the internalfinancial controls overfinancialreporting 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 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on itsfinancial positionin its standalonefinancial statements; (refer note 27)

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. there were no amounts outstanding during the year which were required to betransferred to the Investor Education and Protection Fund by the Company.

For BATLIBOI & PUROHIT
Chartered Accountants
Firm Reg. No.: 101048W
Atul Mehta
Partner
Membership No: 15935
Place: Mumbai
Date: 29 May 2018

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalonefinancial statements for the year ended 31st March 2018 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during theprevious year under a program of verification of fixed assets once in every 3 years whichin our opinion is reasonable having regard to the size of the company and nature of itsassets. No material discrepancies were identi ed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The management has conducted physical verification of inventories (comprising ofstores and spares only) at year-end which in our opinion is reasonable. Discrepanciesnoted on physical verification of inventories were not material and have been properlydealt with in the books of account.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to three bodies corporate covered in the register maintainedunder section 189 of the Companies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinionprima-facie not prejudicial to the Company's interest.

(b) The schedule of repayment of principal and payment of interest has not beenstipulated. Loans given are demand loans. Repayments or receipts of principal amounts andinterest have been received as and when demanded.

(c) There is no overdue amount remaining outstanding as at the year-end.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) According to information and explanations given to us the Company has not acceptedany deposits from the public in accordance with the provisions of section 73 to 76 or anyrelevant provisions of the Act and rules framed thereunder.

(vi) In our opinion and according to the information and explanations given to us themaintenance of cost records under section 148 of the Act is not applicable to the Company.Accordingly paragraph 3(iv) of the Order are not applicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxemployees' state insurance duty of excise sales tax value added tax duty of customsservice tax Goods and service tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax and Goods and service tax cess and other material statutory dueswere in arrears as at 31st March 2018 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us outstanding dues ofIncome Tax that have not been deposited by the Company on account of disputes are givenbelflow:

Name of the Statute Nature of Dues Amount (Rs. lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 94.69 A.Y. 2014-15 Commissioner of Income Tax (appeals)

(viii) Based on our audit procedures and as per information and explanation given tous the Company has not defaulted in repayment of loans to banks and financialinstitutions. The Company did not have any outstanding dues in respect of loans orborrflowings from government or debenture holders during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Term loans obtained foroperations of the company during the year were used to repay the existing inter-corporateloans.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its Officers or employees has been noticed or reported during thecourse of our audit.

(xi) The company has paid / provided for managerial remuneration in accordance withrequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalonefinancial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

for BATLIBOI & PUROHIT
Chartered Accountants
Firm's Registration No.: 101048W
Atul Mehta
Partner
Membership No.: 15935
Place : Mumbai
Date : 29 May 2018

Annexure - B to the Auditors' Report

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 internalfinancial controls overfinancial reporting of Karma EnergyLimited ("the Company") as of 31st March 2018 in conjunction with our audit ofthe standalonefinancial statements of 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 maintaininginternalfinancial controls based on the internal control overfinancial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequateinternalfinancial controls that were operating effectively for ensuring the orderly and efcient conduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliablefinancialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controlsoverfinancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internalfinancial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequateinternalfinancial controls overfinancial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internalfinancial controls system overfinancial reporting and their operatingeffectiveness. Our audit of internalfinancial controls overfinancial reporting includedobtaining an understanding of internalfinancial controls overfinancial 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 Standalonefinancial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internalfinancial controls systemoverfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internalfinancial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability offinancial reporting and thepreparation offinancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internalfinancial control overfinancialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly re ect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation offinancial 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 have amaterial effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internalfinancial controls overfinancialreporting 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 internalfinancial controls overfinancialreporting to future periods are subject to the risk that the internalfinancial controloverfinancial 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 adequateinternalfinancial controls system overfinancial reporting and such internalfinancialcontrols overfinancial reporting were operating effectively as at 31st March 2018 basedon the internal control overfinancial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

for BATLIBOI & PUROHIT
Chartered Accountants
Firm's Registration No.: 101048W
Atul Mehta
Partner
Membership No.: 15935
Place : Mumbai
Date : 29 May 2018