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Kaushalya Infrastructure Development Corpn Ltd.

BSE: 532925 Sector: Infrastructure
NSE: KAUSHALYA ISIN Code: INE234I01010
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VOLUME 500
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OPEN 1.62
CLOSE 1.73
VOLUME 500
52-Week high 5.17
52-Week low 1.60
P/E
Mkt Cap.(Rs cr) 6
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 Financial Statements

We have audited the accompanying Standalone financial statements of KAUSHALYAINFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED ("the company") whichcomprises the Balance Sheet as at 31st March 2017 the Statement of Profit and Loss andthe Cash Flow Statement for the year then ended and a summary of significant accountingpolicies and other 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 preparationand presentation of these Standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial 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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified 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 financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 its profit/loss and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. A s required by the Companies Report) Order 2016 ("the Order") issued bythe Central Government of India in terms of section 143(11) of the Act we give in theAnnexure "A" a statement on the matters Specified in paragraphs 3 and 4 of theOrder.

2. As required by section 143(3) of the we report that: a) W e have sought and obtainedinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit. b) I n our opinion proper books of as required by law havebeen kept by the Company so far as it appears from our examination of those books. c) T heBalance Sheet the of Profit and Loss and Cash Flow Statement dealt with by this Reportare in agreement with the books of account. d) I n our opinion the

Standalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e) O nthe basis of written received from the directors as on 31 March 2017 and taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2017from being appointed as a director in terms of Section 164(2) of the Act. f) W ith respectto adequacy of internal financial controls over financial reporting of the company and theoperating effectiveness of such controls refer to our separate report in Annexure"B". g) W ith respect to 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: the i. The Company discloses the impact of pending litigations on its financial position in itsfinancial statements Refer

Note 25.1 and 25.9 to the financial statements; ii. T he Company did not have anylong-term contracts including derivatives contracts for which there were any materialforeseeable losses. iii. T here has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For MONU JAIN & COMPANY

Chartered Accountants

Firm Registration No: 327900E

Monu Jain

Proprietor

Membership No: 302721

Place: Kolkata Date: 30th May 2017

(Referred to in Paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our Report of even date)

1) In respect of fixed assets: a) The Company has maintained records showing fullparticulars including quantitative details and situation of the fixed assets in soft copyformat. b) According to the information and explanations given to us fixed assets havebeen physically verified by the management in a phased periodical manner which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.No material discrepancies were noticed on such verification. c) Based upon the auditprocedure performed and according to the records of the company the title deeds of allthe immovable properties are held in the name of the Company.

2) As explained to us the inventory has physically verified at reasonable intervalsduring the year by the management. In our opinion the frequency of verification isreasonable and there is no material discrepancies found during the previous year.

3) According to information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms or other parties Covered in theregister maintained under section 189 of the Companies Act 2013.

4) In our opinion and according to and explanations given to us the Company has notgranted any loans or provided any guarantees or security to the parties cover undersection 185 of the Act. In respect of investments made by the Company the Provisions ofsection 186 of the Act have been complied with.

5) According to information and explanations proper given to us the company has notaccepted any deposit from the public during the year in terms of the provision of section73 to 76 of the Act or any other relevant provisions of the Companies Act 2013 and therules made there under.

6) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.

7) In respect of Statutory due: a) According to the information and explanations givento us the Company on various instances has delayed the deposit of the undisputedstatutory dues including Provident Fund Employees been State Insurance Income-tax Taxdeducted at sources Tax collected at source Professional Tax Sales Tax Value Added Tax(VAT) Wealth Tax Service Tax Custom Duty Excise

Duty Cess and other material statutory dues applicable to it. According to theinformation and explanations given to us undisputed amounts payable in respect of ServiceTax ` 13523858/ Provident Fund ` 40189/- and ESI ` 11171/- were outstanding as at31st March 2017 for a period of more than six Month from the date they become payable. b)According to the information and explanations given to us there is no amount disputed inrespect of Income-

Tax Value Added Tax Sales Tax Excise Duty Custom Duty Service tax and

Cess. The particulars of dues of Income

Tax Service Tax & VAT as at 31st March

2017 which have not been deposited on account of dispute are as follows:

Name of the Nature of Dues Amount Period to which the Forum where dispute is
Statute (in Lacs) amount relates pending
Income Tax Act Income tax 28.47 Asst. Year 2007-08 I.T. Appellate Tribunal
Income Tax Act Income tax 25.19 Asst. Year 2009-10 I.T. Appellate Tribunal
Income Tax Act Income tax 37.61 Asst. Year 2010-11 I.T. Appellate Tribunal
Income Tax Act Income tax 1.91 Asst. Year 2011-12 I.T. Appellate Tribunal
Income Tax Act Income tax 51.43 Asst. Year 2012-13 Commissioner of Income
Tax (Appeals)
Income Tax Act Income tax 278.06 Asst. Year 2013-14 Commissioner of Income
Tax (Appeals)
Income Tax Act Income tax 475.52 Asst. Year 2014-15 Commissioner of Income
Tax (Appeals)
Income Tax Act Interest on TDS & Late 2.46 Asst. Year 2015-16 TDS Circle-II
Fees
Income Tax Act Short Deduction of TDS 3.02 Asst. Year 2014-15 TDS Circle-II
& Late Fees
Income Tax Act Interest & Short 3.30 Asst. Year 2013-14 TDS Circle-II
Deduction of TDS &
Late Fees
Income Tax Act Interest on TDS 15.75 Asst. Year 2012-13 TDS Circle-II
The Central Service Tax 896.85 From 1st April 2010- CESTAT Kolkata
Excise Act 1944 31st December 2012
under VCES
The WB.VAT Act Vat 21.00 Financial Year 2007-08 WBVAT Appellate Board
2003 Kolkata
The WB.VAT Act Vat 817.10 Financial Year 2008-09 Revision Board Kolkata
2003
The WB.VAT Act Vat 6.60 Financial Year 2009-10 Sr. Joint Commissoner
2003 Appeal Kolkata
The WB.VAT Act Vat 0.35 Financial Year 2010-11 Sr. Joint Commissoner
2003 Appeal Kolkata

8) Based on our audit procedures and to the information and explanations given to uswe are of the opinion that the company has defaulted in repayment of loan & borrowingsdues to bank. The bankers of the Company i.e. State Bank of India and Indian Overseas Bankhave sent Demand Notice/Notice U/s. 13(2) of SARFAESI Act calling up the entire loan withoutstanding interest and have filed applications with Debt Recovery Tribunal . The companyhas not issued any debenture at balance sheet date.

9) The company has raised moneys by initial public offer in the financial 2007-08.

10) In our opinion and according to the and explanations given to us no fraud on or bythe Company by its officers or employees has been noticed or reported during the Year. 11)In our opinion the managerial has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

12) In our opinion the company is not a Company. Therefore the Provision of clause

3(xii) of the order are not applicable to the

Company.

13) In our Opinion all transactions with according parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year therefore the Provision ofclause

3(xiv) of the order are not applicable to the

Company under review. way 15) of According to the information and explanationsgiven to us and on an overall examination of the financial statements of the Company wereport that the Company has not entered into any non-cash transaction with directors orpersons connected with him therefore reporting under clause 3(xv) of the Order are notapplicable.

16) In our opinion the Company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934.

For MONU JAIN & COMPANY

Chartered Accountants

Firm Registration No: 327900E

Monu Jain

Proprietor

Membership No: 302721 related Date: 30th May 2017Place: Kolkata

Annexure "B" to Independent Auditor's Report

(Referred to in Paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our Report of even date) Report on the Internal FinancialControls under clause (i) of sub section 3 of section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of KAUSHALYAINFRASTRUCTURE DEVELOPMENT

CORPORATION LIMITED ("the company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in Guidance Note on Audit of InternalFinancial Controls over Financial Reporting Issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies

Act 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting 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 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 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 financial statements whether due to fraud or 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 reading the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorization ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a materials effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting 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 internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial 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 adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on audit ofInternal Financial Controls Over Financial Reporting Issued by the Institute of CharteredAccountants of India.

For MONU JAIN & COMPANY

Chartered Accountants

Firm Registration No: 327900E

Monu Jain

Proprietor

Membership No: 302721

Place: Kolkata Date: 30th May 2017