Kaushalya Infrastructure Development Corpn Ltd.
|BSE: 532925||Sector: Infrastructure|
|NSE: KAUSHALYA||ISIN Code: INE234I01010|
|BSE 00:00 | 20 Oct||2.46||
|NSE 00:00 | 20 Oct||2.55||
|Mkt Cap.(Rs cr)||9|
|Mkt Cap.(Rs cr)||8.52|
Kaushalya Infrastructure Development Corpn Ltd. (KAUSHALYA) - Auditors Report
Company auditors report
To the Members of
KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Financial Statements ofKAUSHALYA INFRASTRUCTURE DEVEPOLMENT CORPORATION LTD. ("the Company") whichcomprise the Balance sheet as at March 31 2020 the Statement of Profit and Lossincluding the statement of Other Comprehensive Income the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act2013 as amended (the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordancewith the Code of Ethics' issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements for thefinancial year ended March 31 2020. These matters were addressed in the context of ouraudit of the Standalone Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. For each matter belowour description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the Standalone FinancialStatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the Standalone Financial Statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying Standalone Financial Statements.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'SREPORTT HEREON
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the Standalone Financial Statements and our auditors'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 whethersuch other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
RESPONSIBILITIES OF MANAGEMENT FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting 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 judgment and maintainprofessional skepticism throughout the audit. We also: l Identify and assess therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of 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 system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used andthe reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related. Disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content ofthe Standalone Financial Statements including the disclosures and whether the StandaloneFinancial
Statements represent the underlying transactions and events in a mannerthat achieves 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 for the financial year ended March 31 2020 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
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 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order;
2. 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 Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;
D) In our opinion the aforesaid Standalone Financial Statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
E) On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 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 overfinancial reporting of the Company with reference to these Standalone Financial Statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure 2" to this report;
G) In our opinion the managerial remuneration for the year ended March31 2020 has been paid / provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act;
H) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:
The Company has disclosed the impact of pending litigationson its financial position in its Standalone Financial Statements Refer Note 33 tothe Standalone Financial Statements;
The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any on long-term contracts including derivative contracts;
There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.
Annexure "1" to Independent Auditors' Report (contd.)to the independent Auditor's Report of even date on the Standalone FinancialStatements of KAUSHALYA INFRASTRUCTURE DEVEPOLMENT CORPORATION LTD.
(Referred to in paragraph 1 under Report on other Legal andRegulatory Requirements' section of our Report of even date).
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme for physical verification in aphased periodic manner which in our opinion is reasonable having regards to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.
(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.
(iii) The Company has not granted any loan secured or unsecured tocompanies firms LLP or other parties covered in the register maintained under section189 of the Act. Accordingly the provisions of clauses 3(iii) (a) 3(iii)(b) and 3(iii)(c)of the Order are not applicable.
(iv) According to the information and explanations given to us in ouropinion in respect of loans investment guarantees and security provisions of section185 and 186 of the Act have been complied with by the company.
(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable tothe Company.
(vi) In our opinion and according to the information and explanationgiven to us in respect of goods produced by the company maintenance of cost records hasnot been specified by the Central Government under section148(1) of the Act.
(vii)(a) The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident fundEmployees' State Insurance Income-tax Sales-tax Goods and Services tax Servicetax Duty of Custom Duty of Excise Value Added Tax Cess and Other Statutory Duesapplicable to it except some dues amounting Rs.1879.39 lakhs.
(b) According to the information and explanations provided to us noundisputed amounts payable in respect of Provident fund Employees' State InsuranceIncome- tax Sales Tax Goods and Service tax Service tax Duty of custom Duty ofexcise Value added tax Cess and Other Statutory Dues were outstanding at the year endfor a period of more than six months from the date they became payable.
(c) According to the records of the Company the dues of Income-taxSales-tax Service tax Duty of Custom Duty of Excise Value added tax and Cess whichhave not been deposited on March 31 2020 on account of any dispute are as follows:
(viii) In our opinion and according to the information and explanationsprovided by the management the company's loan from SBI and IOB were taken over bythe Alchemist Asset Reconstruction Company in the year 2016-17. Bank loan from SBI hasbeen fully settled with Alchemist Asset Reconstruction Company in the current year and ithas not defaulted in repayment of loans to Alchemist Asset Reconstruction Company inrelation to IOB.
(ix) The Company did not raise any money by way of initial public offer(including debt instrument) during the year.
(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the Financial Statements and according to theinformation and explanations provided by the management we report that no fraud by theCompany or no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.
(xi) According to the information and explanations provided by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.
(xii) In our opinion the Company is not a Nidhi company. Thereforethe provisions of clause 3(xii) of the Order are not applicable to the Company and hencenot commented upon.
(xiii) According to the information and explanations provided by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thefinancial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations provided to us andon an overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures
(xv) During the year under review and hence reporting requirementsunder clause 3(xiv) of the Order are not applicable to the Company and not commentedupon.
(xvi) According to the information and explanations provided by themanagement the Company has not entered into any non- cash transactions with directors orpersons connected with him as referred to in section 192 of Companies Act 2013.
(xvii) According to the information and explanations provided to usthe provisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicableto the Company.
Annexure "2" to Independent Auditors' Report
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financialreporting of KAUSHALYA INFRASTRUCTURE DEVEPOLMENT CORPORATION LTD. ("theCompany") as of March 31 2020 in conjunction with our audit of the 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 andmaintaining internal financial controls based on the internal control over financialreporting 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to these standalonefinancial statements 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting withreference to these standalone financial statements and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting with reference tothese standalone financial statements assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting with reference to these standalone financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS OVERFINANCIALREPORTING WITHREFERENCE TO THESE FINANCIAL STATEMENTS
A company's internal financial control over financial reportingwith reference to these standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financialreporting with reference to these standalone financial statements includes those policiesand 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING WITH REFERENCE TO THESE STANDALONE FINANCIAL STATEMENTS
Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standalonefinancial statements and such internal financial controls system over financial reportingwith reference to these standalone financial statements were operating effectively as atMarch 31 2020 based on the internal control over financial reporting criteriaestablished by theCompany 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.