Report on the Standalone IndAS Financial
1. We have audited the accompanying Ind AS Standalone financial statements of KridhanInfra Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone
Ind AS Financial Statements
2. The Company's management and Board of Directors are responsible for the mattersstated in Section 134 (5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct.
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 ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3. Our responsibility is to express an opinion on these Ind AS Standalone Financialstatements based on our audit.
In conducting our 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 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 whetherthese financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Ind AS financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS standalone financial statements.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial 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 of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.
Report on Other Legal and Regulatory
7. 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 and on the basis of such checks of the books and records of the company as weconsidered appropriate and according to the information and explanations given to us wegive in Annexure - "A" a statement on the matters specified in paragraphs 3 and4 of the order.
8. 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 by theCompany 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
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 isdisqualified as on 31st March 2018 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 we give ourseparate report in "Annexure - B".;
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 does not have any pending litigations which would have a material impactits financial position.
ii) Based upon the assessment made by the company there are no material foreseeablelosses on its long term contracts that may require any provisioning.
iii) In view of there being no amounts required to be transferred to the InvestorEducation and Protection Fund for the year under audit the reporting under this clause isnot applicable.
For MKPS & Associates
CA Narendra Khandal
Place : Mumbai
Date : 29th May 2018
Annexure - A to the Independent Auditor's Report
Referred to in para 7 of our report of even date to the members of Kridhan InfraLimited for the year ended March 31 2018
i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) The fixed assets of the company have been physically verified by the management ina phased manner and no material discrepancies have been noticed on such verification. Inour opinion the frequency of verification is reasonable.
(c) The title of the immovable assets of the company are in its name.
ii) (a) In our opinion and according to the information and explanations provided tous we are of the view that the company has a system of physical verification of itsinventory the frequency of which is reasonable.
(b) In our opinion and according to the information and explanations provided to us nomaterial discrepancies were noticed on physical verification of the same.
iii) The company has granted unsecured loans to companies covered in the registermaintained under section 189 of the Companies Act 2013 and with respect to the same:
a) In our opinion the terms and conditions of grant of such loans are not prima facieprejudicial to the Company's interest
b) The schedule of repayment of principal and payment of interest has been generallystipulated and the repayment/receipts of the principal amount and the interest areregular.
c) There is no overdue amount in respect of loans granted to such companies.
iv) In our opinion and according to the information and explanations given to us inrespect of loans investments and guarantees the company has complied with the provisionsof Section 185 and 186 of the Act.
v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the period under audit. Consequently thedirectives issued by Reserve Bank of India and the provisions of sections 73 to 76 of theAct and the rules framed thereunder are not applicable.
vi) As per the information and explanations provided to us we are of the opinion thatthe maintenance of cost records has been not been specified by the Central Governmentunder sub-section (1) of section 148 of the Act for the company.
vii) (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is generally regular in depositing theundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andany other material statutory dues as applicable with the appropriate authorities inIndia.
According to the information and explanations given to us there are no undisputedamounts in respect of the aforesaid statutory dues which are in arrears as at March312018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are certain casesof applicable statutory dues which have not been deposited on account of any disputewhich are detailed hereunder:
|Name of Statute and Nature of Dues ||Forum where dispute is pending ||FY to which the amount relates ||Amount involved (' in Lakhs) |
|Income Tax under Income Tax Act 1961 ||Commissioner of Income Tax (Appeals) ||2010-11 ||33.98 |
| ||Commissioner of Income Tax (Appeals) ||2012-13 ||17.68 |
| ||Commissioner of Income Tax (Appeals) ||2009-10 ||1.51 |
viii) Based upon the audit procedures carried out by us and on the basis of informationand explanations provided by the management we are of the opinion that the company has notdefaulted in repayment of dues to banks / Financial Institutions. The company does nothave any borrowings from government and the company has not issued any debentures as atthe balance sheet date.
ix) In our opinion and according to the information and explanations given to us theterm loans taken by the company have been ultimately utilised for the purpose for whichthey were taken. Further the company has not raised any funds by way of initial / furtherpublic offer.
x) Based on the audit procedures performed by us for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven to us by the management we report that we have neither come across any instance offraud by the company or on the company by its officers or employees noticed or reportedduring the year nor have we been informed of any such case by the management.
xi) According to the information and explanations given to us and based on ourexamination of records of the company the company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with schedule V of the Act.
xii) The company is not a Nidhi Company and hence the reporting requirements underclause (xii) of paragraph 3 of the order are not applicable.
xiii) According to the information and explanations given to us all transactionsentered into by the company with related parties are in compliance with section 177 and178 of the Act where applicable and the details thereof have been disclosed in thefinancial statements as required by the applicable accounting standards.
xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under audit.
xv) As per the information and explanations provided to us the company has not enteredinto any non-cash transactions with directors or persons connected with them.
xvi) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under Section 45 - IA of the Reserve Bank ofIndia 1934.
For MKPS & Associates
CA Narendra Khandal
Place : Mumbai
Date : 29th May 2018
Annexure - B to the Independent Auditor's Report
Referred to in para 8 of our report of even date to the members of Kridhan InfraLimited for the year ended March 31 2018
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 internal financial controls over financial reporting of KridhanInfra Limited ("the Company") as of March 31 2018 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 (ICAI). 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 Companies Act 2013.
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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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.
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 March 31 2018 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 MKPS & Associates
CA Narendra Khandal
Place : Mumbai
Date : 29th May 2018