The Members of Krishana Phoschem Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Krishana Phoschem Limited (the Company) which comprise the Balance Sheet as at March 31 2019 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of 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 in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit 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 under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;
a) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2019;
b) In the case of the Statement of Profit and Loss of the profit for the year ended on that date; and
Report on other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as appears from our examination of those books;
c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e) On the basis of written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us :
i. The Company does not have any pending litigations which would impact its financial position;
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses;
iii. There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Company.
2. 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 a statement on the matters specified in paragraphs 3 and 4 of the Order.
|For M/s. Rajneesh Kanther & Associates|
|Date: 10.05.2019||M. No. 102162|
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in our report of even date)
Annexure referred to in Point 2 of the Auditors' Report of even date to the members of Krishana Phoschem Limited for the year ended as on March 31 2019. On the basis of such checks as considered appropriate and in terms of the information and explanations given to us we state as under:
(i) a. The Company has maintained proper records showing full particulars including quantitative details and situations of fixed assets.
b. As per the information and explanations given to us fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.
c. As per the information given to us the title deeds of the immovable properties are held in the name of the company.
(ii) As per the information and explanation given to us the inventories have been physically verified during the year by the management at reasonable intervals. No material discrepancy was noticed on such verification.
(iii) As per the information and explanation given to us and on the basis of our examination of the books of account the company has not granted loans to any parties covered in the register maintained under section 189 of the Companies Act 2013. Thus clause iii (a) iii (b) iii (c) are not applicable.
(iv) In our opinion and according to the information and explanations given to us in respect of loans investments guarantees and security the provisions of section 185 and I86 of the Companies Act 2013 has been complied with by the company.
(v) In our opinion and as per the information and explanations given to us and on the basis of our examination of the books of account the company has not accepted any deposits covered under section 73 of the Companies Act 2013.
(vi) As per information & explanation given by the management maintenance of cost records has been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
(vii) a. According to the information and explanations given to us and the records examined by us the company is generally regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax wealth-tax service tax duty of custom duty of excise value added tax cess and any other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us no undisputed arrears of statutory dues were outstanding as at 31st March 2019 for a period of more than 6 months from the date they became due.
b. According to the record of the company there is no amounts payable in respect of income tax or sales-tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any disputes.
(viii) Based on our audit procedures and the information and explanations given by the management we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks. There are no debenture holders of the company.
(ix) According to the record of the company no money has been raised by way of initial public offer or further public offer. Company raised money of Rs. 500.00 Lacs by way of term loan. The loan has been utilized for the purpose for which it has been sanctioned.
(x) Based on our audit procedures performed and on the information and explanations given to us we have neither came across any instances of fraud on or by the company noticed or reported during the year nor we have been informed for such case by the management.
(xi) According to the records of the company and on the basis of information and explanation given to us we are of the opinion that the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provision of section 197 read with schedule V to the Companies Act.
(xii) In our opinion the Company is not a nidhi. Therefore clause 12 of the Companies (Auditor's Report) order 2016 is not applicable to the Company.
(xiii) In our opinion and according to the record of the company all transactions with the related parties are in compliance with section 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.
(xiv) According to the record of the company the company has not made any preferential allotment or fully or partly convertibles debentures during the year. Company has not made private placements of shares during the year in compliance of section 42 of Companies Act 2013 and amount raised has been utilized for the purpose for which it has been raised.
(xv) According to the information and explanations given to us and the records examined by us the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the record of the company the company is not required to be registered under section 45 IA of the Reserve Bank of India Act 1934.
|For M/s. Rajneesh Kanther & Associates|
|Date: 10.05.2019||M. No. 102162|