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Kaushalya Infrastructure Development Corpn Ltd.

BSE: 532925 Sector: Infrastructure
NSE: KAUSHALYA ISIN Code: INE234I01010
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OPEN 1.15
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VOLUME 1011
52-Week high 5.05
52-Week low 0.96
P/E 0.16
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.15
CLOSE 1.13
VOLUME 1011
52-Week high 5.05
52-Week low 0.96
P/E 0.16
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 Ind AS financial statements of KaushalyaInfrastructure Development Corporation Limited ("the Company") which comprisethe Balance Sheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements TheCompany's Board of Directors is responsible for the matters stated in Section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone Ind AS financial statements that give a true and fair view of financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the Companies(Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding 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 internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation

of the standalone Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting 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 report under the provisions of the Act and the Rules made there under.

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 amount 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 risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the financial statements that give at true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness 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 evidences obtained by us are sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

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 financial position ofthe Company as at 31st March 2018 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of Section 143(11) of the Act ("the Order") and onthe basis of checks of the books and records of the Company as we considered appropriateand according to the information and explanations given to us we give in the Annexure Aa statement on the matters specified in paragraphs 3 and 4 of the Order.

As required by Section 143(3) of the Act we report that:

(i) 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.

(ii) 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.

(iii) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this report are in agreement with the books of account.

(iv) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rule issuedthere under.

(v) On the basis of the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act.

(vi) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure B.

(vii) 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 knowledge and belief and information and according to theexplanations given to us.

(viii) The Company has disclosed the impact if any of pending litigations as at 31stMarch 2018 on its financial position in its standalone Ind AS financial statements - ReferNote 34 to the standalone Ind AS financial statement.

(ix) The Company has made provision as required under the applicable laws or Ind ASfor material foreseeable losses if any on long- term contracts including derivativecontracts.

(x) There were no delays in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31st March2018.

(xi) The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended 31st March 2018.

For MONU JAIN & COMPANY

Firm Regn. No: 327900E

Chartered Accountants

Monu Jain

Place: Kolkata Partner

Date: 30th May 2018 Membership No: 302721

Annexure "A" to the Independent Auditors' Report

Referred to in the Independent Auditor's Report of even date to the members ofKaushalya Infrastructure Development Corporation Limited on the Standalone Ind ASfinancial statements for the year ended 31st March 2018.

I. (a) The Company is maintaining proper

records showing full particulars including quantitative details and situation offixed assets

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion theplanned frequency of verification of the fixed assets is reasonable having regard to thesize of the Company and the nature of its assets.

(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. (a) The management has conducted physical

verification of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventory and no materialdiscrepancies between physical inventory and book records were noticed on physicalverification.

III. The Company has not granted any loan secured or unsecured to companies firms

LLP or other parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clauses 3(iii) (a) 3(iii)(b) and 3(iii)(c) of the Orderare not applicable.

IV. According to the information and explanations given to us in our opinion inrespect of loans investment guarantees and security provisions of section 185 and 186of the Act have been complied with by the company.

V. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable.

VI. In our opinion and according to the information and explanation given to us inrespect of goods produced by the company maintenance of cost records has not beenspecified by the Central Government under section 148(1) of the Act.

VII. (a) According to the information and

explanations given to us and on the basis of our examination of the records of theCompany amounts deducted/ accrued in the books of account in respect of undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable have generally been regularly deposited to theappropriate authorities. Further no undisputed amounts were outstanding on the year-endfor a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us the following duesoutstanding in respect of income-tax sales-

tax service tax duty of customs duty of excise value added tax and cess on accountof any dispute are as follows:

Name of the Statute Nature of the Dues Amount (in Lakh) Period to which the amount relates Forum where dispute is pending
Income Tax Act Income Tax 25.06 Asst. Year 2007-08 I.T. Appeallate Tribunal
Income Tax Act Income Tax 20.19 Asst. Year 2009-10 I.T. Appeallate Tribunal
Income Tax Act Income Tax 37.61 Asst. Year 2010-11 I.T. Appeallate Tribunal
Income Tax Act Income Tax 1.91 Asst. Year 2011-12 I.T. Appeallate Tribunal
Income Tax Act Income Tax 59.26 Asst. Year 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Act Income Tax 332.74 Asst. Year 2013-14 Commissioner of Income Tax (Appeals)
Income Tax Act Income Tax 513.89 Asst. Year 2014-15 Commissioner of Income Tax (Appeals)
Income Tax Act Interest on TDS & Late Fee 2.46 Asst. Year 2015-16 TDS Cir. II
Income Tax Act Short deduction of TDS & Late Fee 3.02 Asst. Year 2014-15 TDS Cir. II
Income Tax Act Interest Short deduction of TDS & late Fee 3.30 Asst. Year 2013-14 TDS Cir. II
Income Tax Act Interest on TDS 15.80 Asst. Year 2012-13 TDS Cir. II
The Central Excise Act 1944 Service Tax 896.85 From 1st April 2010 to 31st December 2012 VCES CESTAT Kolkata
The WBVAT Act 2003 VAT 21.00 Financial Year 2007-08 Joint Commissioner Kol. North Cir.
The WBVAT Act 2003 VAT 817.10 Asst. Year 2008-09 Revision Board Kolkata
The WBVAT Act 2003 VAT 6.60 Asst. Year 2009-10 Sr. Joint Commissioner Appeal Kolkata
The WBVAT Act 2003 VAT 0.35 Asst. Year 2010-11 Sr. Joint Commissioner Appeal Kolkata

(xii) In our opinion and according to the information and explanations given to us thecompany has defaulted in the repayment of borrowings to State Bank of India and IndianOverseas Bank in the previous year. However in the current financial year loan of thesebanks were taken over by the Alchemist Asset Reconstruction Company and since then nodefault has occurred. Refer Note 35 of standalone Ind AS financial statements.

(xiii) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instrument) during the year.

(xiv) According to the information and

explanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.

(xv) According to the information and

explanations given to us and based on our examination of the records of the Companythe Company has paid /provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with schedule V to theAct.

(xvi) In our opinion and according to the

information and explanations given to

us the Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order isnot applicable.

(xvii) According to the information and

explanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with section 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable Indian accounting standards.

(xviii) According to the information and

explanations given to us and based on our examination of the records of the Companythe Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year.

(xix) According to the information and

explanations given to us and based on our

examination of the records of the Company the Company has not entered into noncashtransactions with directors or persons connected with them. Accordingly the

provisions of Clause 3(xv) of the Order are not applicable to the Company.

(xx) The Company is not required to be registered

under section 45-IA of the Reserve Bank of India Act 1934. Accordingly the

provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For MONU JAIN & COMPANY

Firm Regn. No: 327900E Chartered Accountants

Monu Jain

Place: Kolkata Partner Date: 30th May 2018 Membership No: 302721

Annexure "B" to Independent Auditor's Report

Referred to in the Independent Auditors' Report of even date to the members ofKaushalya Infrastructure Development Corporation Limited on the standalone Ind ASfinancial statements for the year ended 31st March 2018

Report on Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 ("the Act")

In conjunction with our audit of the standalone financial statements of KaushalyaInfrastructure

Development Corporation Limited ("the Company") as of and for the year ended31st March 2018 we have audited the internal financial controls over financial reporting(Internal financial controls) of the Company as of that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial 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 ICAI. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the 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.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's Internal financialcontrols based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls over Financial Reporting (the "GuidanceNote") and Standards on Auditing issued by the Institute of Chartered Accountants ofIndia (ICAI) and deemed to be prescribed under section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls and the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the

"Guidance Note") both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls and their operating effectiveness. Our audit of internalfinancial controls included obtaining an understanding of internal financial controlsassessing 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial controls is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's Internal financial controls includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessary

to permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of Internal financial controls 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 to future periods are subject to therisk that Internal financial controls may become

inadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2018 based the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by Institute of Chartered Accountants of India.

For MONU JAIN & COMPANY

Firm Regn. No: 327900E Chartered Accountants

Monu Jain

Place: Kolkata Partner Date: 30th May 2018 Membership No: 302721