| We have audited the accompanying financial statements of Kulkarni Power
Tools 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 the 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 stated
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
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
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 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. 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.
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.
Opinion
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, of the state of affairs of the Company as
at 31st March 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015, 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 paragraph 3 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 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 it appears from our examination of those
books.
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
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 the 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:
1) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 30(A) to
the financial statements;
2) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
3) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Referred to in paragraph 1 of our Report on Other Legal and Regulatory
Requirements of even date.
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b. The fixed assets were physically verified during the year by the
management at reasonable intervals. According to information and
explanations given to us, no material discrepancies were noticed on
such verification.
2. a. The inventory was physically verified during the year by the
management. In our opinion the frequency of verification is reasonable.
b. The procedures followed for physical verification by management are
reasonable and adequate in relation to size of Company and nature of
its business.
c. The Company is maintaining proper records of inventory.
Discrepancies between the physical stock and the book records noticed
on verification were properly dealt with in the books of accounts.
3. According to information and explanations given to us, the Company
has 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.
Accordingly, the reporting under Clause 3 (iii) (a) and (b) of the
Companies (Auditor's Report) Order, 2015, is not applicable to the
Company.
4. In our opinion and according to the information given to us, there
were adequate internal control systems 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.
There is no continuing failure to correct major weaknesses in internal
control system.
5. According to information and explanation given to us, the Company
has complied with directives issued by Reserve Bank of India and the
provisions of Section 73 to 76 or any other relevant provisions of
Companies Act, 2013 and rules framed there under. As informed to us, no
order has been passed by the Company Law Board in respect of the said
provisions.
6. We have broadly reviewed the books of accounts and records
maintained by the Company pursuant to the rules made by Central
Government for the maintenance of cost records under Sub-section (1) of
Section 148 of the Companies Act 2013, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete.
7. a. According to information and explanation given to us, the
Company is regular in depositing undisputed statutory dues with
appropriate authorities including provident fund, employees' state
insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory
dues applicable to it.
According to information and explanation given to us, no undisputed
amount payable in respect of statutory dues 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 information and explanation given to us, there are no
dues of Income tax, Sales Tax, Wealth Tax, Service Tax, Custom duty,
Excise Duty and Cess which have not been deposited on account of any
dispute other than those mentioned below:
Nature of Dues Amount Period to which the Forum where dispute
is pending
(Rs,) amount relates
Sales Tax 1,796,230 2009-10 Jt. Commissioner of
Sales Tax (Appeals),
Kolhapur
Karnataka
Entry 232,096 2011-12 Jt. Commissioner of
Commercial
Tax Taxes (Appeals),
Bengaluru
Income Tax 3,384,126 2011-12 Commissioner of
Income Tax
(Appeals), Kolhapur
c. The amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under has been transferred to
such fund within time.
8. The Company does not have any accumulated losses. The Company has
not incurred cash losses during the financial year and in the
immediately preceding financial year.
9. The Company has not defaulted in repayment of dues to a Financial
Institution or Bank.
10. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, accordingly the reporting under Clause
3 (x) of the Companies (Auditor's Report) Order, 2015, is not
applicable to the Company.
11. In our opinion, the term loans have been applied for the purpose
for which they were raised.
12. According to information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the year.
For M/s P.G. Bhagwat
Chartered Accountants
Firm Registration No: 101118W
Nikhil M Shevade
Place: Pune Partner
Date : 28th May, 2015 Membership No. 21737 |