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Kiduja India Ltd.

BSE: 507946 Sector: Financials
NSE: N.A. ISIN Code: INE845A01010
BSE 00:00 | 27 Feb Kiduja India Ltd
NSE 05:30 | 01 Jan Kiduja India Ltd
OPEN 26.15
PREVIOUS CLOSE 26.15
VOLUME 18
52-Week high 26.15
52-Week low 19.65
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 26.15
Sell Qty 246.00
OPEN 26.15
CLOSE 26.15
VOLUME 18
52-Week high 26.15
52-Week low 19.65
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 26.15
Sell Qty 246.00

Kiduja India Ltd. (KIDUJAINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF KIDUJA INDIA LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of KIDUJA INDIA LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act' the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on • Auditing specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial 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 the reason ab&fiess

of the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 31stMarch 2017 and its loss and cash flows for the year ended on that date.

Emphasis of Matters

i. Without qualifying we draw your attention to the fact that the financial statementsof the Company have been prepared on the principles of a going concern basis (refer noteno. 20.1 (a) to the financial statements) which contemplated the realization of assetsand the satisfaction of liabilities in the normal course of. business. The Company hasbeen incurring losses for the past few years and its net worth has been fully eroded.Also the Company's current liabilities exceeded its current assets as on 31stMarch 2017. These conditions indicate the existence of a material uncertainty that maycast significant doubt about the Company's ability to continue as a going concern.

However the management is confident of reversing the losses in the coming years withthe committed financial support from the Promoters. Accordingly the financial statementshave been prepared on a going concern basis.

ii. There is a diminution in the carrying value of long term investments of Rs.300384662 made in Venture Capital Funds. However the management is of the opinion thatthe investments have been made on long term basis and diminution in its value istemporary; -ManagenrremHs also confident' of receivrng-at-least-carrying value in duecourse and therefore in their opinion no provision is considered necessary.

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 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraph 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 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 joy the

Company so far as it appears from our examination of those books

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to other matter to be included in the Auditor's Report in accordancewith the Rule 11 of the Companies (Audit and Auditors ) Rules 2014 in our opinion andto the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigation on its financial positionin its financial statements- Refer Note No. 20.6 to the financial statements;

ii. The Company did not have material foreseeable losses on long term contractsincluding derivative contracts; and

iii. There is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

iv. The Company has disclosed the holdings as well as dealings in Specified Bank Notesduring the period from 8th November 2016 to 30th December 2016 in aforesaid financialstatements - Refer Note 20.11 to the financial statements and the same was in accordancewith the books of accounts maintained by the Company.

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
Rl. P. Baradiya
Place: Mumbai Partner
Date: May 30 2017 Membership No. 44101

ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGAL AND REGUALTORYREQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF "KIDUJA INDIA LIM1TED"F0R THEYEAR ENDED 31st MARCH 2017

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:

1. The Company does not have any Fixed Assets. Therefore the provisions of. Clause3(i) of the Order are not applicable to the Company.

2. There are no inventories in the Company. Accordingly the provisions of clause 3(ii)of the Order are not applicable to the Company.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly the provisions of clause 3(iii) of the Order are notapplicable to the Company.

4. During the year the Company has not granted any loans made investments givenguarantees and provided security as referred to in section 185 and 186 of the Act.Accordingly the provisions of clause 3(iv) of the Order are not applicable to theCompany.

5. No deposits have been accepted by the Company within the meaning of directivesissued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevantprovisions of the Act and rules framed there under.

6. As informed the Central Government has not prescribed the maintenance of costrecords under Section 148 (1) of the Act in respect of service/activities carried out bythe Company.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax and otherstatutory dues applicable to the Company with appropriate authorities. No undisputedamounts payable in respect of the aforesaid statutory dues were outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of income tax sales taxservice tax duty of customs duty of excise vajue added tax which have not beendeposited on account of any dispute exceptJhpse mentioned in

the table below:

Name of the statute Nature of dues Period to which it relates Amount in Rs. Forum where dispute is pending
The Income Tax Act 1961 Income Tax AY 2011-12 3526420 Income Tax Appellate Tribunal (ITAT)
The Income Tax Act 1961 Income Tax (Penalty) AY 2011-12 3708000 Commissioner of Income Tax (Appeals) Mumbai

8* The Company has not defaulted in repayment of loans or borrowings to a financialinstitution banks government during the year. {Refer note No. 5(b) to financialstatements}

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year or in the recent past Based on theinformation and explanations given to us by the management term loans were applied forthe purpose for which the loans were obtained.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations-given to us we have neither come across anyinstance of material fraud by or on the Company by its officers or employees noticed orreported during the year nor have we been informed of such case by the management.

11. The Company has not paid or provided managerial remuneration. Therefore paragraph

3(xi) of the Order are not applicable to the-Company.

12. In our opinion and-according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Order.are not applicable to the Company.

13. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the Information and explanations given to us all transactions with therelated party are in compliance with section 177 and T8"8 of the Act and the detailshave been disclosed as required by the applicable Accounting Standard (Refer Note no 20.7to the Financial Statements.

14. The Company has not made any preferential allotment or private placement of sharesor

fully or partly convertible debentures during the year. Therefore the provisions. ofclause 3(xiv) of the Order are not applicable to the Company.

15. Based on the information and explanations given to us the Company has not entered

into any non-cash transactions prescribed under section 192 of the Act with directorsor persons connected with them during the year.

16. The Company is registered under Section 45-lA of the Reserve Bank of India Act1934.

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
R. P. Baradiya
Place: Mumbai Partner
Date: May 30 2017 Membership No. 44101

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of KIDUJAINDIA LIMITED ("the Company") as of March 31 2017 in conjunction with our auditof the financial 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 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 the Institute of Chartered Accountants of India (ICAl). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly -and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAl. Those Standards and the Guidance Note require that. we..com ply withethical requirements and plan and perform the audiMo-obtain-reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 judgement 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 regarding 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 authorisations ofmanagement and. directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 ali material respects an adequate internalfinancial controls . system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 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 LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
R. P. BaracWya
Place : Mumbai Partner
Dated : May 30 2017 Membership No. 44101