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Kusam Electrical Industries Ltd.

BSE: 511048 Sector: Consumer
NSE: N.A. ISIN Code: INE175Q01018
BSE 00:00 | 29 Mar Kusam Electrical Industries Ltd
NSE 05:30 | 01 Jan Kusam Electrical Industries Ltd
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OPEN 5.18
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VOLUME 1
52-Week high 5.18
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price 5.18
Buy Qty 36500.00
Sell Price 0.00
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Kusam Electrical Industries Ltd. (KUSAMELECTR) - Auditors Report

Company auditors report

The Members of

KUSAM ELECTRICAL INDUSTRIES LIMITED

1. Opinion

We have audited the accompanying Ind AS financial statements of Kusam ElectricalIndustries Limited the Company") which comprises the Balance Sheet as at March31 2019 the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity Statement of cash flows for the year ended March 31 2019and notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

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 including the Ind AS of the state ofaffairs of the Company as at March 31 2019 and its profits and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe IND AS Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on the INDAS financial statements.

2. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the IND AS financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters.

There are no key audit matters identified in our audit.

3. Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Director's Report and ManagementDiscussion & Analysis Report but does not include the financial statements and ourauditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact.

When we read the Directors Report and Management Discussion & Analysis Report ifwe conclude that there is a material misstatement therein we are required to communicatethe matter to those charged with governance.

4. Responsibilities of Management and Those Charged with Governance for the IND ASFinancial 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 of theseInd AS financial statements that give a true and fair view of the financial position thefinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the IND AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

5. Auditor's Responsibilities for the Audit of the IND AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the IND AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these IND AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the IND AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern.

If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the IND AS financial statements or ifsuch disclosures are inadequate to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the IND AS financialstatements including the disclosures and whether the IND AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the IND AS financial statements thatindividually or in aggregate make it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the IND AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

6. Report on Other Legal and Regulatory Requirements

6.1 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

6.2 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 by theCompany so far as it appears from our examination of those books

c. The Balance Sheet the Statement of Profit and Loss(including Other ComprehensiveIncome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the Company has paid remuneration to its directors during the year inaccordance with the section 197(16) read with schedule V to the act.

h. 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 has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note No 29of the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses - Refer Note No29of the financialstatements.

iii. There was no delay in transferring amounts which were required to be transferredto the Investor Education and Protection Fund by the Company.

For CHHAJED & DOSHI
Chartered Accountants
[Firm Reg. No.101794W]
CA. Aruna Dhanesha
Place: Mumbai Partner
Date: 20hMay 2019 M. No: 107863

ANNEXURE "A" TO AUDITOR'S REPORT

Annexure referred to in our report of even date to the members of Kusam ElectricalIndustries Limited on the accounts for the year ended 31st March 2019

We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme for physical verification of its fixed assetsand no material discrepancies were noticed on such verification.

(c) Title Deeds of the immovable properties are held in the name of the Company.

(ii) In our opinion and according to the information and explanations given to us theinventory has been physically verified during the year by the management at reasonableintervals and no material discrepancies have been noticed.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not granted any loans secured or unsecuredto companies firms LLP or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly reporting requirement of paragraph 3 (iii) ofthe Order is not applicable.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not granted any loans to persons covered undersection 185 of the Companies Act 2013. As regards to Investments Loans and Guaranteesgiven to companies provisions of section 186 have been complied with.

(v) The Company has not accepted deposits from public hence directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are not applicablefor the year under audit.

(vi) Since the company is not a manufacturing company hence provision for maintenanceof cost records under sub section (1) of Section 148 of the Companies Act 2013 are notapplicable to the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records the Company is regular in depositing undisputed statutorydues including Income-tax Customs dutyGoods and Services Tax Cess and other materialstatutory dues applicable to it to the appropriate authorities.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records no undisputed amounts payable in respect of Income tax SalestaxA/AT Service tax Customs duty Goods and Services Tax Cess and other materialstatutory dues which have not been deposited on account of any dispute except as indicatedhereunder:

Name of the Statute Nature of Dues and the period Amount (Rs.) Forum where dispute is pending
Maharashtra VAT Act 2002 Assessment Dues F.Y. 2009-10 3667 Dy. Commissioner of Sales Tax
Assessment Dues F.Y. 2010-11 12532 (Appeals)

(viii) The company did not have any dues outstanding to any financial institutions /banks / Government or to debenture holders during the year hence question of default doesnot arise.

(ix) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not raised money by way of initial publicoffer /further public offer or Term Loans during the year.

(x) According to the information and explanations given to us and on the basis of ourexamination of the records no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct.

(xii) According to the information and explanations given to us and on the basis of ourexamination of the records the company is not a Nidhi Company thus reporting requirementunder paragraph 3 (xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and on the basis ofour examination of the records all transactions with the related parties are incompliance with Sections 177 and 188 of the Companies Act 2013 where applicable and thedetails have been disclosed in the Ind AS financial Statements as required by theapplicable accounting standards.

(xiv) The company has not made private placement of shares during the year.

(xv) According to the information and explanations given to us and on the basis of ourexamination of the records there are no non-cash transactions with the directors orpersons connected with him covered under the provisions of section 192 of the CompaniesAct 2013.

(xvi) According to the information and explanations given to us and in our opinion thecompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For CHHAJED & DOSHI
Chartered Accountants
[Firm Reg. No.101794W]
CA. Aruna Dhanesha
Place: Mumbai Partner
Date: 20thMay 2019 Membership No: 107863

ANNEXURE "B" TO AUDITOR'S REPORT

Annexure referred to in our report of even date to the members of Kusam ElectricalIndustries Limited on the accounts for the year ended 31st March 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

1. Report on the Internal Financial Controls

We have audited the internal financial controls over financial reporting of KusamElectrical Industries Limited as at 31stMarch 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

2. 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". 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.

3. 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 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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.

4. 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.

5. 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.

6. 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 March 31 2019 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 CHHAJED & DOSHI
Chartered Accountants
[Firm Reg. No.101794W]
CA. Aruna Dhanesha
Place: Mumbai Partner
Date: 20th May 2019 Membership No: 107863

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