| 1. We have audited the accompanying standalone financial statements of
KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED ("the
Company"), which comprise the Balance Sheet as at 31st March, 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other
explanatory information, which we have signed under reference to this
report.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone 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 maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting 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 adequate
internal financial controls, 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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. While conducing the 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 thereunder.
5. 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 misstatements.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion, and to the best of our information and according to
the explanations given to us, the aforesaid standalone 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, of the state of
affairs of the Company as at 31st March, 2015, and its loss and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the 'Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of subsection (11)
of section 143 of the Act(hereinafter referred to as the "Order") based
on the comments in the auditors' reports, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
10. As required by Section 143 (3) of the Act, we report, to the
extent applicable, 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 relating
to preparation of the financial statements have been kept so far as it
appears from our examination of those books and the reports of the
others;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
relevant books of account maintained for the purpose of preparation of
financial statements;
d) In our opinion, the aforesaid standalone 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 31st March, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The company disclose the impact of pending litigations on its
financial position in its financial statements - Refer Note 25.1 (2) &
25.9(a) to the financial statements;
ii) The Company did not have any long- term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to Independent Auditors' Report
Referred to in paragraph [9] of the Independent Auditors' Report of
even date to the members of Kaushalya Infrastructure Development
Corporation Limited on the standalone financial statements for the year
ended 31st March 2015
(i) (a) The company is maintaining proper records in soft copy format
showing full particulars, including quantitative details and situations
of fixed assets except for the period before Financial year 2004-05.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the company and nature of its assets. Pursuant
to the programme, a portion of the fixed assets has been physically
verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the company and its nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As informed to us, the company have not granted any loans,
secured or unsecured, to companies, firms or other parties covered in
the register maintained under section 189 of the Companies Act, 2013
and accordingly the provisions of Clause 3(iii)[(b) and (c)] of the
said Order are not applicable to the company.
(iv) In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the company and according to the information and explanation
given to us, we have neither come across, nor have been informed of,
any continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) The Company have not accepted any deposits from the public within
the meaning of Sections 73 to 76 of the Act and the rules framed there
under.
(vi) The Central Government has not prescribed cost records u/s 148(1)
of the Companies Act, 2013 for any of the activities of the company and
accordingly the provisions of Clause 3 (vi) of the order is not
applicable to the company.
(vii) (a) Accordingly to the information and explanations given to us
and the records of the company examined by us, in our opinion, the
companion various instances has delayed the deposit of the undisputed
statutory dues including Provident Fund, Employees' State Insurance,
Income-tax, Sales-tax, Service Tax, Value Added Tax, cess and any other
statutory dues applicable to it. According to information and
explanations given to us, undisputed amounts payable in respect of
Service Tax Rs. 1,44,07,638/-, Tax deducted at Source Rs. 25,000/- and
ESI Rs. 4,419/- were in arrears as at 31st March, 2015 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us and
records of the Company examined by us, there are no dues of income-
tax, sales Tax, service tax, value added Tax, cess and other material
dues which have not been deposited on account of dispute. The
particulars of dues of service tax & income tax as at 31st March 2015
which have not been deposited on account of a dispute, are as follows:
Name of the Statute Nature of Dues Amount (in
Lacs)
Income Tax Act Income tax 0.91
Income Tax Act Income tax 28.47
Income Tax Act Income tax 30.27
Income Tax Act Income tax 37.61
Income Tax Act Income tax 1.91
Income Tax Act Income tax 51.43
Income Tax Act Interest on TDS 2.46
& Late Fees
Income Tax Act Short Deduction of 3.02
TDS & Late Fees
Income Tax Act Interest & Short Deduction 3.30
of TDS & Late Fees
Income Tax Act Interest on TDS 15.75
Income Tax Act Interest, Short Payment
& Deduction of TDS
The Central Service Tax 421.84
Excise Act,1944
The WB.VAT Act, 2003 Vat 87.42
The WB.VAT Act, 2003 Vat 89.53
The WB.VAT Act, 2003 Vat 817.10
The WB.VAT Act, 2003 Vat 6.60
The WB.VAT Act, 2003 Vat 0.35
The WB.VAT Act, 2003 Vat 65.35
Name of the Statute Period to which the Forum where dispute is
amount relates pending
Income Tax Act Asst. Year 2005-06 I.T. Appellate Tribunal
Income Tax Act Asst. Year 2007-08 I.T. Appellate Tribunal
Income Tax Act Asst. Year 2009-10 I.T. Appellate Tribunal
Income Tax Act Asst. Year 2010-11 I.T. Appellate Tribunal
Income Tax Act Asst. Year 2011-12 I.T. Appellate Tribunal
Income Tax Act Asst. Year 2012-13 Commissioner of Income
Tax (Appeals)
Income Tax Act Asst. Year 2015-16 TDS Circle-II
Income Tax Act Asst. Year 2014-15 TDS Circle-II
Income Tax Act Asst. Year 2013-14 TDS Circle-II
Income Tax Act Asst. Year 2012-13 TDS Circle-II
Income Tax Act Prior Assessment TDS Circle-II
Years
The Central From 1st april, Service Tax
Excise Act,1944 2010- 31st Commisionerate, Kolkata
December 2012
under VCES
The WB.VAT Financial Year Revision Board, Kolkata
Act, 2003 2006-07
The WB.VAT Financial Year Revision Board, Kolkata
Act, 2003 2007-08
The WB.VAT Financial Year Revision Board, Kolkata
Act, 2003 2008-09
The WB.VAT Financial Year Sr. Joint Commissioner
Act, 2003 2009-10 Appeal, Kolkata
The WB.VAT Financial Year Sr. Joint Commissioner
Act, 2003 2010-11 Appeal, Kolkata
The WB.VAT Financial Year Sr. Joint Commissioner
Act, 2003 2011-12 Appeal, Kolkata
(c) According to the information and explanations given to us the
company has transferred Rs. 1,63,680/- to the investor education and
protection fund in accordance with the relevant provisions of Companies
Act,1956 and rules made thereunder, with the appropriate authorities.
(viii) The company has accumulated losses as at 31st March, 2015 which
is less than fifty percent of the net worth of the Company and it has
incurred cash loss of Rs. 6,56,14,996/- in the current year and of Rs.
13,65,80,111/- in the immediately preceding financial year.
(ix) According to the records of the company examined by us and the
information and explanations given to us, the company has defaulted in
payment of bank interest of Rs. 45,42,695/- and the same has been
reversed by the bank in the month of March. The bankers of the Company
are considering a second restructuring which is under review by lead
banker(The State Bank of India). The Company has not issued any
debentures at balance sheet date.
(x) In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institution.
(xi) The company has not taken any term loans and accordingly the
provisions of Clause 3(xi) of the order are not applicable to the
company.
(xii) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the aforesaid company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Sumanta & Co.
Firm Registration No. 322554E
Chartered Accountants
Pradeep Kumar Agarwal
Place : Kolkata Partner
Date : The 30th day of May, 2015 ICAI Membership No. 056521
|