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Kushal Ltd.

BSE: 536170 Sector: Industrials
NSE: N.A. ISIN Code: INE647N01021
BSE 14:32 | 13 Apr 4.09 -0.08
(-1.92%)
OPEN

4.17

HIGH

4.17

LOW

4.09

NSE 05:30 | 01 Jan Kushal Ltd
OPEN 4.17
PREVIOUS CLOSE 4.17
VOLUME 18221
52-Week high 7.28
52-Week low 1.94
P/E
Mkt Cap.(Rs cr) 101
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.09
Sell Qty 106598.00
OPEN 4.17
CLOSE 4.17
VOLUME 18221
52-Week high 7.28
52-Week low 1.94
P/E
Mkt Cap.(Rs cr) 101
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.09
Sell Qty 106598.00

Kushal Ltd. (KUSHAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF KUSHAL LIMITED AHMEDABAD

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements of KUSHALLIMITED (‘the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss (including Other Comprehensive Income if any) theCash flow statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (herein afterreferred to as "Standalone Ind AS financial statements")

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fairview of the financial position financial performance including Other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (IND AS)specified under Section 133 of the Act read with relevant rules issued thereunder. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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 Standalone Ind AS financialstatements that give true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on 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 conductedour audit of the Standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Standalone Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the Standalone Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the Standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the StandaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Standalone IndAS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the76 aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2019 and its profit including other comprehensive income itscash flows and the changes in equity for the year ended on that date.

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 Section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3and 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 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 Standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act read withrelevant rules issued thereunder.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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 controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B" to this report; (g) Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 Standalone Ind AS financial statements. ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. During the year there has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.

For S. V. Sojitra & Co.
Chartered Accountant
(Sanjay V. Sojitra)
Proprietor
Membership No. 135239
FRN NO. 139013W
Place : Ahmedabad
Date : May 30 2019

ANNEXURE A

TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OFKUSHAL LIMITED

(Referred in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" of our report of even date)

(i)

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) The fixed assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies were noticed on such verification. (c) The title deeds of immovableproperties are held in the name of the company. (ii) As explained to us management hasconducted physical verification of inventory at reasonable intervals during the year andno material discrepancies were noticed on such physical verification. (iii) The companyhas not granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

As 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 Companies Act 2013 following points are not applicable incidental tothat.

(a) Whether the terms and conditions of the grant of such loans are not prejudicial tothe company's interest; (b) Whether the schedule of repayment of principal and payment ofinterest has been stipulated and whether the repayments or receipts are regular; (c) ifthe amount is overdue state the total amount overdue for more than ninety days andwhether reasonable steps have been taken by the company for recovery of the principal andinterest; (iv) In our opinion and according to the information and explanations given tous the company has complied with the provisions of section 185 and 186 of the CompaniesAct 2013 in respect of grant of loans making investments and providing securities andguarantees. (v) The Company has not accepted any deposits within the meaning of Sections73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable to the Company.(vi) Maintenance of cost records specified by the central government under section 148(1)of the Companies Act 2013 is not applicable to the company. (vii) (a) According to therecords of the company undisputed statutory dues including Provident Fund Employees'State Insurance Income Tax Sales tax Goods and Services Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess and other material statutory dues have been regularlydeposited with the appropriate authorities. No undisputed amounts payable in respect ofthe aforesaid dues were outstanding as at March 31 2019 for a period of more than sixmonths from the date of becoming payable. (b) According to information and explanationgiven to us there are no undisputed amounts payable in respect of provident fund salestax Goods and Services Tax or service tax or duty of customs or duty of excise or valueadded tax and other statutory dues were outstanding at the year end for the period ofmore than six months from the date they become payable.

(c) Details of dues of income tax which have not been deposited on March 31 2019 onaccount of disputes as follows:

Name of the statue Nature Of Dues Amount (in Lakh) Period to which the amount relates(AY) Forum where dispute is pending
Income Tax Act1961 Income Tax 135.65 2007-08 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax 1.31 2008-09 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax 9.48 2009-10 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax 192.36 2010-11 Commissioner of Income Tax (Appeals)
Income Tax Act1961 Income Tax 120.64 2016-17 Commissioner of Income Tax (Appeals)

Income Tax Department and Goods and Service Tax Departments carried out search atRegistered Office of the company. Investigation Proceedings for both the departments arenot yet concluded. (viii) In our opinion and according to the information and explanationgiven to us the company has not defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders. (ix) According toinformation and explanation given to us the company has not raised money by way ofinitial public offer or further public offer (including debt instruments). Moreover thecompany has not taken term loans during the year. (x) There is no fraud by the company orany fraud on the Company by its officers or employees has been noticed or reported duringthe year. (xi) According to information and explanation given to us the managerialremuneration has been paid/ provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013. (xii)The Company is not a Nidhi Company and hence reporting under clause (xii) of paragraph 3of the Order is not applicable. (xiii) All transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Standalone Ind AS Financial Statements as required by the applicableIndian Accounting Standards. (xiv) The company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review hence reporting requirements under clause (xiv) of paragraph 3 of the Orderis not applicable to the Company. (xv) According to information and explanation given tous the company has not entered into any non-cash transactions with directors or personsconnected with him as referred to in section 192 of Companies Act 2013 and hencereporting under clause (xv) of paragraph 3 of the Order is not applicable to the company.(xvi) According to the information and explanations provided to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 is not applicable to the Company.

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OFKUSHAL LIMITED

(Referred in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" of our report of even date) Report on the Internal Financial Controlsover Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the CompaniesAct 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KUSHALLIMITED ("the Company") as of 31st March 2019 in conjunction with our auditof the Standalone Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial controls over financial reportingcriteria established by the Company considering the essential components of internalfinancial controls stated in the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting ("the Guidance Note") issued by the Institute ofChartered Accountants of India (‘ICAI')". These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal financial controls basedon the assessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the Standalone Ind AS financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial controls 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 controls 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 authorizations 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 controlsover 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March 2019 based on the internal financial controlsover financial reporting criteria established by the Company considering the essentialcomponents of internal financial controls stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S. V. Sojitra & Co.
Chartered Accountant
(Sanjay V. Sojitra)
Proprietor
Membership No. 135239
FRN NO. 139013W
Place : Ahmedabad
Date : May 30 2019

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