Mar 31, 2022
Report on Standalone Financial Statements: Opinion
We have audited the accompanying financial statements of THE KCP LIMITED (âthe companyâ), which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âthe Standalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us the accompanying financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standard) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022, and its profit and total comprehensive income, 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 on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditorâs responsibility for the Audit of Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs code of Ethics. 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.
Key Audit matters are those matters that in our professional judgment, were of most significance in our audit of the Standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard
Managementâs Responsibility for the Standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting
Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India.
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 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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone financial statements, the Board of Directors is responsible for assessing the companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order,2020(âthe Orderâ) 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, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2) As required by Section 143(3) of the Companies Act,2013 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 including Other Comprehensive Income, Statement of Changes in Equity 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 Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014;
e) on the basis of written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ, Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial controls with reference to financial statements;
g) With respect to Managerial Remuneration to be included in the Auditorâs report under Section 197(16) In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
h) With respect to the other matters to be included in the Auditorâs report in accordance with Rule 11 of the Companies (Audit and Auditorâs) Rules, 2014, as amended in our
opinion and 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 financial position in its standalone Ind AS financial statements - Refer Note 37 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts but did not have derivative contractsâRefer Note 52 to the Ind AS financial statements
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented
that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the
aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. a) Dividend of the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
b) The Board of Directors of the Company have proposed dividend Rupee 1 per share for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend proposed is in accordance with section 123 of the Act, as applicable. ( Refer Note No 53 Notes to accounts of Standalone Financial Statements)
for K.S.RAO & CO Chartered Accountants Firm Regn.No.003109S
(P.GOVARDHANA REDDY) Partner
Place : Chennai Membership N°. 029193
Date 1805 2022 UDIN220229193AJRMZA2175
Mar 31, 2018
Independent Auditorâs Report
To the members of The KCP Limited, Chennai
Report on Standalone Ind-AS Financial Statements:
We have audited the accompanying standalone Ind AS financial statements of The KCP Limited, Chennai, which comprise the Balance sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as âstandalone Ind AS financial statementsâ) .
Managementâs Responsibility for the Standalone Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of Companies Act, 2013 read with relevant rules issued there under and other accounting principles generally accepted in India. 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 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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Companies Act, 2013 the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Companies 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 Companies Act, 2013.Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the financial position of the Company as at 31st March, 2018, its financial performance including other comprehensive income, its cash flows and 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(âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2) As required by Section 143(3) of the Companies 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 purpose 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 and changes in equity dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, read with relevant rules issued there under and other accounting principles generally accepted in India;
e) on the basis of written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Companies Act;
f) with respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ, and
g) 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 has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements
- Refer Note 35 to the standalone Ind AS financial statements;
ii. the company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long term contracts and did not have derivative contracts - Refer Note 50 to the financial statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
The Annexure referred to in Paragraph 1 under the heading âReport on other Legal and Regulatory Requirementsâ of our report of even date, to the members of THE KCP LIMITED, CHENNAI for the year ended 31st March 2018.
We report that:
(i) a. the company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets;
b. the Fixed Assets are physically verified by the management according to a phased program 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 the nature of its assets. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification;
c. according to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of the immovable property are held in the name of the company.
(ii) the inventory has been physically verified by the management at reasonable intervals during the year under report and the discrepancies noticed during such physical verification of inventories as compared to book records have been properly dealt with in the books of account.
(iii) the company has not granted any loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of clause 3(iii)(a), 3(iii)(b) & 3(iii)(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, the company has not granted any loans, guarantees and security in accordance with the provisions of section 185 of the Companies Act 2013. The company has complied with the provisions of Section 186 of the Companies Act 2013, in respect of investments made by the company.
(v) in our opinion the company has complied with the provisions of section 73 to 76 and other applicable provisions of the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information furnished to us, no Order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for noncompliance with the provisions of Sections 73 to 76 of the Companies Act 2013.
(vi) we have broadly reviewed the books of account and records maintained by the company at its cement, engineering and electric power generation units pursuant to the Rules made by the Central Government for the maintenance of Cost Records under section 148(1) 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 basis of our examination of the records of the company, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Goods and Service Tax, Service Tax, duty of Customs, duty of Excise, Value added tax, Cess and other material statutory dues applicable to it; and
according to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income Tax, Sales Tax, Goods and Service Tax, Service Tax, duty of customs, duty of Excise, value added tax, cess and other material statutory dues were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable;
(b) according to the information and explanations given to us, there were no amounts of Sales Tax, duty of Customs, Goods and Service Tax, duty of Excise, Cess, Income Tax, Service Tax that have been disputed by the company, and hence, were not remitted to the concerned authorities at the date of the Balance Sheet under report, except
(viii) according to the records of the company examined by us, and the information and explanations given to us, there were no defaults in repayment of loans or borrowings to banks during the year under report;
S No |
Nature of dues |
Name of the statute |
Period |
Amount (Rs. Lakhs) |
Paid under protest (Rs. Lakhs) |
Forum where the dispute is pending |
1 |
Excise duty and related demands |
Central Excise Act 1944 |
1996-2015 |
2027.45 |
89.20 |
At various Appellate forums |
2 |
Sales tax and related demands |
AP Sales Tax Act 1957 |
1996-2001 and 2011-12 |
237.77 |
103.23 |
AP High Court |
3 |
Sales tax and related demands |
Tamilnadu Sales Tax Act |
2007-08 & 2015-16 |
8.70 |
6.87 |
Addl. Commissioner of Commercial taxes |
4 |
Forest Permit Charges |
A.P. Forest Produce Rules 1970 |
2010-15 and 2016-17 |
301.38 |
96.06 |
Hon''ble High Court |
5 |
Royalty |
MMDR Act,1957 |
1986-87 |
0.93 |
0.00 |
ADMG - Guntur |
6 |
Net Present Value of Safety Zone Area |
Forest Conservation Act,1980 |
2014-15 |
17.87 |
0.00 |
DFO - Guntur |
7 |
Income Tax |
Income Tax Act 1961 |
2010-11 &2012-13 |
8.03 |
0.00 |
CIT (Appeals) |
8 |
Electricity Duty |
AP Electricity Duty Act 1938 |
July 2003 to May 2013 |
871.22 |
522.73 |
Hon''ble Supreme Court of India |
(ix) in our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year;
(x) 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 instances of material fraud by the company or any fraud on the company by its officers or employees, noticed or reported during the year, nor we have been informed of any such case by the management;
(xi) according to the information and explanations given to us and based on our examination of the records of the company, the company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act 2013;
(xii) the company is not a chit fund or a nidhi/mutual benefit fund/society and hence, the requirement of clause 3(xii) of the Order is not applicable to the company during the year under report;
(xiii) according to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards;
(xiv) according to the information and explanations given to us, and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year;
(xv) according to the information and explanations given to us, and based on our examinations of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with them. Therefore, the provision of clause 3(xv) of the Order is not applicable;
(xvi) the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of The KCP Limited (âthe Companyâ) as of 31st March
2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
For K. S. RAO & Co
Chartered Accountants
Firm Registration No: 003109S
Place: Chennai
Date: 28th May, 2018 (P.GOVARDHANA REDDY)
Partner
(ICAI Memb. No. 029193)
Mar 31, 2017
To the members of The KCP Limited, Chennai
Report on Standalone Financial Statements:
We have audited the accompanying standalone financial statements of The KCP Limited, Chennai, which comprise the Balance sheet as at 31st March, 2017, 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.
Managementâs Responsibility for the Standalone Financial Statements:
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 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 Companies Act, 2013 read with Rule 7 of 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 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 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Companies Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Companies 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 Companies Act, 2013.Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud of error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of 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 Companyâs 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 standalone financial statements.
Opinion
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 Companies 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, 2017, 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 (Auditorâs Report) Order,2016(âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose 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 agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Companies 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, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Companies Act;
f) with respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ, and
g) with respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27 to the financial statements;
ii. the company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts and did not have derivative contracts - Refer Note 45 to the financial statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company; and
iv. the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the company - Refer Note No.47 to the stand alone financial statements.
The Annexure referred to in Paragraph 1 under the heading âReport on other Legal and Regulatory Requirementsâ of our report of even date, to the members of THE KCP
LIMITED, CHENNAI for the year ended 31st March 2017.
We report that:
(i) a The company has maintained proper records
showing full particulars including quantitative details and situation of its fixed assets;
b. The Fixed Assets are physically verified by the management according to a phased program 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 the nature of its assets. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification;
c. According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of the immovable property are held in the name of the company.
(ii) The inventory has been physically verified by the management at reasonable intervals during the year under report and the discrepancies noticed during such physical verification of inventories as compared to book records have been properly dealt with in the books of account.
(iii) The company has not granted any loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of clause 3(iii)(a), 3(iii)(b) & 3(iii)(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, the company has not granted any loans, guarantees and security in accordance with the provisions of section 185 of the Companies Act 2013. The company has complied with the provisions of Section 186 of the Companies Act 2013, in respect of investments made by the company.
(v) In our opinion the company has complied with the provisions of section 73 to 76 and other applicable provisions of the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information furnished to us, no Order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for noncompliance with the provisions of Sections 73 to 76 of the Companies Act 2013.
(vi) We have broadly reviewed the books of account and records maintained by the company at its cement, engineering and electric power generation units pursuant to the Rules made by the Central Government for the maintenance of Cost Records under section 148(1) 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 basis of our examination of the records of the company, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, , Service Tax, duty of Customs, duty of Excise, Value added tax, Cess and other material statutory dues applicable to it; and
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income Tax, Sales Tax, Service Tax, duty of customs, duty of Excise, value added tax, cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable;
(b) According to the information and explanations given to us, there were no amounts of Sales Tax, duty of Customs, duty of Excise, Cess, Income Tax, Service Tax that have been disputed by the company, and hence, were not remitted to the concerned authorities at the date of the Balance Sheet under report, except
(viii) According to the records of the company examined by us, and the information and explanations given to us, there were no defaults in repayment of loans or borrowings to banks during the year under report;
S.No |
Nature of dues |
Name of the statute |
Period |
Amount in Rs. Lakhs |
Amount paid under protest (Rs. in Lakhs) |
Forum where the dispute is pending |
1 |
Excise duty and related demands |
Central Excise Act 1944 |
1996-2015 |
2029.40 |
89.20 |
At various Appellate forums |
2 |
Sales tax and related demands |
AP Sales Tax Act 1957 |
1996-2001 and 2011-12 |
169.12 |
103.23 |
AP High Court |
3 |
Sales tax and related demands |
Tamilnadu Sales Tax Act |
2007-08 |
8.70 |
6.87 |
Addl. Commissioner of Commercial taxes |
4 |
Forest Permit Charges |
A.P. Forest Produce Rules 1970 |
2010-15 and 2016-17 |
259.77 |
96.06 |
Honâble High Court |
5. |
Royalty |
MMDR Act,1957 |
1986-87 |
0.93 |
0 |
ADMG - Guntur |
6 |
Net Present Value of Safety Zone Area |
Forest Conservation Act,1980 |
2014-15 |
17.87 |
0 |
DFO - Guntur |
7 |
Income Tax |
Income Tax Act 1961 |
2010-11 & 2012-13 |
27.78 |
0 |
CIT (Appeals) |
8 |
Electricity Duty |
AP Electricity Duty Act 1938 |
July 2003 to May 2013 |
919.90 |
522.73 |
Honâble Supreme Court of India |
(ix) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year;
(x) 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 instances of material fraud by the company or any fraud on the company by its officers or employees, noticed or reported during the year, nor we have been informed of any such case by the management;
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act 2013;
(xii) The company is not a chit fund or a nidhi/mutual benefit fund/society and hence, the requirement of clause 3(xii) of the Order is not applicable to the company during the year under report;
(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards;
(xiv) According to the information and explanations given to us, and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year;
(xv) According to the information and explanations given to us, and based on our examinations of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with them. Therefore, the provision of clause 3(xv) of the Order is not applicable;
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
To the members of The KCP Limited, Chennai
Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of The KCP Limited (âthe Companyâ) as of 31st March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For K. S. RAO & Co For BRAHMAYYA & CO
Chartered Accountants Chartered Accountants
Firm Registration No: 003109S Firm Regn No 000513S
Place: Chennai P. Govardhana Reddy T. V. Ramana
Partner Partner
Date: 22nd May, 2017 (ICAI Memb. No. 029193) (ICAI Memb. No. 200523)
Mar 31, 2016
Report on Standalone Financial Statements:
We have audited the accompanying standalone financial statements of The KCP Limited, Chennai, which comprise the Balance sheet as
at 31st March, 2016, 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.
Management''s Responsibility for the Standalone Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 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 Companies Act, 2013 read with Rule 7 of 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 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 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 standalone financial statements based on our audit.
We have taken into account the provisions of the Companies Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Companies 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 Companies 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 of error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company''s preparation of 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.
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
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 Companies 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, 2016, 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,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", a statement on the matters specified in the paragraph 3
and 4 of the Order, to the extent applicable.
2) As required by Section 143(3) of the Companies Act, 2013 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 purpose 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 standalone financial statements comply with the Accounting Standards specified under Section 133
of the Companies 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, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section
164(2) of the Companies Act;
f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating
effectiveness of such controls, refer to our separate report in "Annexure B", and
g) 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 has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note
27 to the financial statements;
ii. The company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long term contracts and did not have derivative contracts â Refer Note 48 to the financial statements;
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 the Independent Auditor''s Report:
The Annexure referred to in Paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of
even date, to the members of THE KCP LIMITED, CHENNAI for the year ended 31st March 2016. We report that:
(i) at The company has maintained proper records showing full particulars including quantitative details and situation of its
fixed assets
b. The Fixed Assets are physically verified by the management according to a phased program 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 the nature of its
assets. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year
and no material discrepancies have been noticed on such verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the company,
the title deeds of the immovable property are held in the name of the company
(ii) The inventory has been physically verified by the management at reasonable intervals during the year under report and the
discrepancies noticed during such physical verification of inventories as compared to book records have been properly dealt with
in the books of account.
(iii) The company has not granted any loans to companies, fi rms, Limited Liability Partnerships or other parties covered in the
register maintained under section 189 of the Companies Act 2013. Therefore, the provisions of clause 3(iii)(a), 3(iii)(b) &
3(iii)(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, the company has not granted any loans,
guarantees and security in accordance with the provisions of section 185 of the Companies Act 2013. The company has complied with
the provisions of Section 186 of the Companies Act 2013, in respect of investments made by the company.
(v) In our opinion the company has complied with the provisions of section 73 to 76 and other applicable provisions of the
Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public.
According to the information furnished to us, no Order has been passed on the company by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non- compliance with the provisions of
Sections 73 to 76 of the Companies Act 2013.
(vi) We have broadly reviewed the books of account and records maintained by the company at its cement, engineering and electric
power generation units pursuant to the Rules made by the Central Government for the maintenance of Cost Records under section
148(1) 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 basis of our examination of the records of the
company, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, , Service Tax, duty of Customs, duty of Excise,
Value added tax, Cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income
Tax, Sales Tax, Service Tax, duty of customs, duty of Excise, value added tax, cess and other material statutory dues were in
arrears as at 31st March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there were no amounts of Sales Tax, duty of Customs, duty of
Excise, Cess, Income Tax, Service Tax that have been disputed by the company, and hence, were not remitted to the concerned
authorities at the date of the Balance Sheet under report, except
S. Nature of dues Name of the statute Period
No.
1 Excise duty
and related The Central Excise
Act, 1944 1996-2013
demands
2 Sales tax and
related The AP Sales Tax
Act, 1957 1996-2001
demands
3 Sales tax and
related Tamilnadu \
Sales Tax Act 2007-08
demands
4 Sales tax and
related UP Sales Tax
Act 1948 1988
demands
5. Forest Permit
Charges A.P Forest
Produce transit 2010-15
Rules 1970
6 Royalty MMDR Act,1957 1986-87
7 Net Present
Value of The Forest
Conservation 2014-15
Safety Zone Area Act,1980
8 Income Tax The Income
Tax Act 1961 2010-11
to 2012-13
Nature of dues Amount in Forum where the
RS, Lakhs dispute is pending
Excise duty
and related
demands 3281.06 At various Appellate forums
Sales tax
and related
demands 112.29 AP High Court
Sales tax
and related
demands 1.82 Addl. Commissioner of
Commercial taxes
Sales tax
and related
demands 18.15 Allahabad High Court
Forest
Permit Charges 268.95 Hon''ble AP High Court
Royalty 0.93 ADMG - Guntur
Net Present Value of
Safety Zone Area 17.87 DFO - Guntur
Income Tax 52.90 CIT (Appeals)
(viii) According to the records of the company examined by us, and the information and explanations given to us, there were no
defaults in repayment of loans or borrowings to banks during the year under report.
(ix) The company did not raise any money by way of initial public offer or further public offer (including debt instruments) and
term loans during the year under report. Accordingly, the provision of clause 3(ix) of the Order is not applicable.
(x) 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 instances of material fraud by the company or any fraud on the company by its officers or employees, noticed or reported
during the year, nor we have been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the company, the
company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V of the Companies Act 2013.
(xii) In our opinion and according to the information and explanations furnished to us, the company is not a chit fund or a
nidhi/mutual benefit fund/society and hence, the requirement of clause 3(xii) of the Order is not applicable to the company
during the year under report.
(xiii) According to the information and explanations given to us and based on our examination of the records of the company,
transactions with the related parties are in compliance with sections 177 and 188 of the Act wherever applicable and details of
such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, and based on our examination of the records of the company, the
company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during
the year.
(xv) According to the information and explanations given to us, and based on our examinations of the records of the company, the
company has not entered into non-cash transactions with directors or persons connected with them. Therefore, the provision of
clause 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For BRAHMAYYA & CO
Chartered Accountants
Firm Regd No 000513S
Place: Chennai T. V. Ramana
Partner
Date: 27th May, 2016 (ICAI Memb. No. 200523)
Mar 31, 2014
We have audited the accompanying fi nancial statements of The KCP
Limited, Chennai which com- prise the Balance Sheet as at March 31,
2014, the Statement of Profi t and Loss and Cash Flow Statement for the
year then ended, and a summary of signifi cant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956( "The Act") read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the fi nancial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We con- ducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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
control relevant to the Company''s prepa- ration and fair presentation
of the fi nancial statements in order to design audit procedures that
are appropri- ate in the circumstances, but not for the purpose of
expressing an opinion on the entity''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the fi nancial
statements. We believe that the audit evi- dence we have obtained is
suffi cient and appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
b. In the case of the Statement of Profi t and Loss , of the profi t
for the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and expla- nations which to the
best of our knowledge and belief were necessary for the purpose 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, Statement of Profi t and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profi t and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notifi cation as to
the rate at which the cess is to be paid under section 441 A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and pay- able by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in Paragraph 1 under the heading of "Report on
other Legal and Regulatory Requirements'' of our report of even date, to
the mem- bers of THE KCP LIMITED, CHENNAI for the year ended 31 March
2014. We report that :
1.1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1.2 According to the information and explanations furnished to us, the
company has physically verifi ed some of its fixed assets during the
year, in accordance with a phased programme of verifi cation, which, in
our opinion, is reasonable, having regard to the size of the company
and the nature of the assets. As per the said information and
explanations, no material discrepancies were noticed on such verifi
cation carried out during the year.
1.3 Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2.1 According to the information and explanations furnished to us, the
company has physically verifi ed its inventories during the year. In
our opinion, the frequency of such verifi cation is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory and the discrepancies if
any noticed on verifi cation between the physical stocks and the book
records were not material, and have been properly dealt with in the
books of accounts.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to companies, fi rms or other parties
covered by the register maintained under Section 301 of the Companies
Act 1956, at the beginning of the year or during the year, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has, at the date of the Balance Sheet under report, taken loans
aggregating to Rs.22,05,03,000 from three directors, Rs.7,82,00,000
from two relatives of the director and Rs. 6,15,00,000 from a company,
covered by the register maintained under Section 301 of the Companies
Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, fi rms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated on the loans taken by it from the parties listed in the
registers maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fi xed assets and with
regard to the sale of goods and services. Further, during the course of
our audit, we have not come across any instances of major weaknesses in
internal control that require correction and have so continued without
correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, and contracts referred to in 5.1
above and exceeding Rs. 5,00,000 with any party during the year have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company at its cement, engineering and electric power
generation units pursuant to the Rules made by the Central Government
for the maintenance of Cost Records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
However, we are not required to and have not carried out a detailed
audit of the same.
9.1 According to the information furnished to us, the company has
generally been regular in depositing with the appropriate authorities,
the undisputed statutory dues including Provident Fund, Investor
Education Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
9.2 There were no undisputed statutory dues mentioned in the preceding
paragraph in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
9.3 According to the information furnished to us, there were no amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax that have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report, except
S. Nature of Applicable Amt. in
Pending before
No dues statute Rs
1 Excise duty Central Excise 322282877 Commissioner
and related Act 1944 of Appeals
demands
2 Sales tax Sales tax Acts 5126809 Various
and related of various appellate
demands state Govts. authorities
3. Forest Permit A.P. Forest 12064816 Hon''ble High
Charges Produce Rules Court
1970
10. According to the information and explanations furnished to us by
the company, it had no accumulated losses at the end of the fi nancial
year, and it did not incur cash losses during the fi nancial year
covered by our audit and in the immediately preceding fi nancial year.
11. In our opinion and according to the information and explanations
furnished to us by the company, there were no defaults in repayment of
dues to fi nancial institutions, banks or debenture holders at the date
of the Balance Sheet.
12. According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefi t fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
instruments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
15. In our opinion, and according to the information furnished to us,
there are no guarantees outstanding as at the year end that are given
by the company for loans taken by others from banks or fi nancial
statements.
16. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
funds raised on short-term basis have not been used for long-term
investment.
18. According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Act.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21. According to the information and explanations furnished to us, and
based on the audit procedures generally adopted by us, we report that,
during the year, no fraud on or by the company has been noticed or
reported that is either significant or could have caused a material
misstatement in the financial statements.
For BRAHMAYYA & CO
Chartered Accountants
Firm Regd No 000513S
Place: Chennai T. V. Ramana
Partner
Date: 22nd May, 2014 (ICAI Memb. No. 200523)
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying fi nancial statements of The KCP
Limited, Chennai which comprise the Balance Sheet as at March 31, 2013,
the Statement of Profi t and Loss and Cash Flow Statement for the year
then ended, and a summary of signifi cant accounting policies and other
explan- atory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-sec- tion (3C) of
section 211 of the Companies Act, 1956 ("The Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the fi nancial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these fi nancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reason-
able assurance about whether the fi nancial state- ments are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and dis- closures in the fi nancial statements. The proce-
dures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the fi nancial statements 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 management, as well as evaluating the
overall presentation of the fi nancial statements. We believe that the
audit evi- dence we have obtained is suffi cient and appropri- ate to
provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the fi nancial 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, 2013;
b. In the case of the Statement of Profi t and Loss, of the profi t
for the year ended on that date; and
c. In the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose 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, Statement of Profi t and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profi t and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notifi cation as to
the rate at which the cess is to be paid under section 441 A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements'' of our report of even date.
1.1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fi xed assets.
1.2 According to the information and explanations furnished to us, the
company has physically verifi ed some of its fi xed assets during the
year, in accordance with a phased programme of verifi cation, which, in
our opinion, is reasonable, having regard to the size of the company
and the nature of the assets. As per the said information and
explanations, no material discrepancies were noticed on such verifi
cation carried out during the year.
1.3 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fi xed assets
during the year.
2.1 According to the information and explanations furnished to us, the
company has physically verifi ed its inventories during the year. In
our opinion, the frequency of such verifi cation is reasonable.
2.2 In our opinion, the procedures of physical verifi cation of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory and the discrepancies if
any noticed on verifi cation between the physical stocks and the book
records were not material, and have been properly dealt with in the
books of accounts.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to companies, fi rms or other parties
covered by the register maintained under Section 301 of the Companies
Act 1956, at the beginning of the year or during the year, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has, at the date of the Balance Sheet under report, taken loans
aggregating to Rs.20,75,03,000 from three directors, Rs.6,85,00,000
from two relatives of the director and Rs. 7,40,00,000 from a company,
covered by the register maintained under Section 301 of the Companies
Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, fi rms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated on the loans taken by it from the parties listed in the
registers maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fi xed assets and with
regard to the sale of goods and services. Further, during the course of
our audit, we have not come across any instances of major weaknesses in
internal control that require correction and have so continued without
correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company at its cement, engineering and electric power
generation units pursuant to the Rules made by the Central Government
for the maintenance of Cost Records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
However, we are not required to and have not carried out a detailed
audit of the same.
9.1 According to the information furnished to us, the company has
generally been regular in depositing with the appropriate authorities,
the undisputed statutory dues including Provident Fund, Investor
Education Protection Fund, Employees'' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
9.2 There were no undisputed statutory dues mentioned in the preceding
paragraph in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
9.3 According to the information furnished to us, there were no amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax that have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report, except
1 Excise duty Central 101580392 Commissioner and related Excise Act of
Appeals demands 1944
2 Sales tax Sales tax Acts 3821040 Various and related of various
appellate demands state Govts. authorities
3. Forest Permit A.P. Forest 9520355 Hon''ble High
Charges Produce Court
Rules 1970
10. According to the information and explanations furnished to us by
the company, it had no accumulated losses at the end of the fi nancial
year, and it did not incur cash losses during the fi nancial year
covered by our audit and in the immediately preceding fi nancial year.
11. In our opinion and according to the information and explanations
furnished to us by the company, there were no defaults in repayment of
dues to fi nancial institutions, banks or debenture holders at the date
of the Balance Sheet.
12. According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefi t fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
15. In our opinion, and according to the information furnished to us,
there are guarantees to the extent of Rs. 1,02,00,000/- outstanding as
at the year end that are given by the company for loans taken by two
parties from a bank.
16. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
funds raised on short-term basis have not been used for long-term
investment.
18. According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Act.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21. According to the information and explanations furnished to us, and
based on the audit procedures generally adopted by us, we report that,
during the year, no fraud on or by the company has been noticed or
reported that is either signifi cant or could have caused a material
misstatement in the fi nancial statements.
For BRAHMAYYA & CO
Chartered Accountants
Firm Regd No 000513S
Place: Chennai T. V. Ramana
Partner
Date: 17th May, 2013 (ICAI Memb. No. 200523)
Mar 31, 2012
We have audited the attached Balance Sheet of The KCP Limited, as at
31st March 2012, its Statement of Profit and Loss for the year ended on
that date annexed thereto, and its cash-flow statement for the year
ended on that date. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors' Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
a. We have 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 such
books;
c. The Balance Sheet and Statement of Profit and Loss and Cash-flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss
and the Cash-flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2012,
ii. In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date,
iii. In the case of the cash-flow statement, of the cash-flows of the
company for the year ended on that date
1.1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1.2 According to the information and explanations furnished to us, the
company has physically verified some of its fixed assets during the
year, in accordance with a phased programme of verification, which, in
our opinion, is reasonable, having regard to the size of the company
and the nature of the assets. As per the said information and
explanations, no material discrepancies were noticed on such
verification carried out during the year.
1.3 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fixed assets
during the year.
2.1 According to the information and explanations furnished to us, the
company has physically verified its inventories during the year. In our
opinion, the frequency of such verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory and the discrepancies if
any noticed on verification between the physical stocks and the book
records were not material, and have been properly dealt with in the
books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to companies, firms or other parties
covered by the register maintained under Section 301 of the Companies
Act 1956, at the beginning of the year or during the year, and
consequently
reporting under sub-clauses b, c and d of clause 4(iii) of the Order
does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has, at the date of the Balance Sheet under report, taken loans
aggregating to Rs.17,80,03,500 crores from three directors,
Rs.1,29,00,000 from a relative of the director and Rs. 7,50,00,000 from
a company, covered by the register maintained under Section 301 of the
Companies Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated on the loans taken by it from the parties listed in the
registers maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, during the course of
our audit, we have not come across any instances of major weaknesses in
internal control that require correction and have so continued without
correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company at its cement and electric power generation
units pursuant to the Rules made by the Central Government for the
maintenance of Cost Records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we are not
required to and have not carried out a detailed audit of the same.
9.1 According to the information furnished to us, the company has
generally been regular in depositing with the appropriate authorities,
the undisputed statutory dues including Provident Fund, Investor
Education Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
9.2 There were no undisputed statutory dues mentioned in the preceding
paragraph in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
9.3 According to the information furnished to us, there were no amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax that have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report, except
S.No. Nature of Dues Applicable Amount Pending
Statute (in Rs) Before
Excise duty and
Central Excise Commissioner
1. 3,06,82,545
related demands Act 1944 of Appeals
Sales tax Acts Various
Sales tax and
2. of various state 56,36,029 appellate
related demands
Govts. authorities
A.P. Forest
Forest Permit Honble High
3. Produce Rules 71,21,406
Charges Court
1970
Various
Income Tax Act
4. Income Tax 75,03,281 appellate
1961 authorities.
10. According to the information and explanations furnished to us by
the company, it had no accumulated losses at the end of the financial
year, and it did not incur cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
furnished to us by the company, there were no defaults in repayment of
dues to financial institutions, banks or debenture holders at the date
of the Balance Sheet.
12. According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
15. In our opinion, and according to the information furnished to us,
there are guarantees to the extent of Rs. 3,02,00,000/- outstanding as
at the year end that are given by the company for loans taken by two
parties from a bank.
16. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that funds raised on short-term basis have not been used for long-term
investment.
18. According to the information and explanations furnished to us, the
company has not made any
preferential allotment of shares during the year to parties and
companies covered in the register maintained under section 301 of the
Act.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21. According to the information and explanations furnished to us, and
based on the audit procedures generally adopted by us, we report that,
during the year, no fraud on or by the company has been noticed or
reported that is either significant or could have caused a material
misstatement in the financial statements.
For BRAHMAYYA & Co
Chartered Accountants
Firm Regd No 000513S
Place: Chennai T. V. Ramana
Partner
Date: 28th May, 2012 (ICAI Memb. No. 200523)
Mar 31, 2011
We have audited the attached Balance Sheet of The KCP Limited, as at
31st March 2011, its Profit and Loss Account for the year ended on
that date annexed thereto, and its cash-fl ow statement for the year
ended on that date. These financial state- ments are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with audit- ing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free of material misstate- ment. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and sig- nifi cant estimates
made by management, as well as evaluating the overall financial
statement presenta- tion. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specifi ed in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
a. We have 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 such
books;
c. The Balance Sheet and Profit and Loss Account and Cash-fl ow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet and Profit and Loss account and
the Cash-fl ow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualifi ed as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011,
ii. In the case of the Profit and Loss Account, of the Profit for the
year ended on that date,
iii. In the case of the cash-fl ow statement, of the cash-fl ows of the
company for the year ended on that date
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1.1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fi xed assets.
1.2 According to the information and explanations furnished to us, the
company has physically verifi ed some of its fi xed assets during the
year, in accordance with a phased programme of verification, which, in
our opinion, is reasonable, having regard to the size of the company
and the nature of the assets. As per the said information and
explanations, no material discrepancies were noticed on such verifi
cation carried out during the year.
1.3 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fi xed assets
during the year.
2.1 According to the information and explanations furnished to us, the
company has physically verifi ed its inventories during the year. In
our opinion, the frequency of such verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory and the discrepancies if
any noticed on verification between the physical stocks and the book
records were not material, and have been properly dealt with in the
books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to companies, firms or other parties
covered by the register maintained under Section 301 of the Companies
Act 1956, at the beginning of the year or during the year, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has, at the date of the Balance Sheet under report, taken loans
aggregating to Rs.18.06 crores from three directors, Rs.1.09 crores
from a relative of the director and Rs. 7.00 crores from a company,
covered by the register maintained under Section 301 of the Companies
Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated on the loans taken by it from the parties listed in the
registers maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fi xed assets and with
regard to the sale of goods and services. Further, during the course of
our audit, we have not come across any instances of major weaknesses in
internal control that require correction and have so continued without
correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company
has complied with the provisions of section 58A and 58AA and other
applicable provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. According to the information furnished to
us, no Order has been passed on the company by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal for non-compliance with the provisions of Sections
58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company at its cement and electric power generation
units pursuant to the Rules made by the Central Government for the
maintenance of Cost Records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we are not
required to and have not carried out a detailed audit of the same.
9.1 According to the information furnished to us, the company has
generally been regular in depositing with the appropriate authorities,
the undisputed statutory dues including Provident Fund, Investor
Education Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
9.2 There were no undisputed statutory dues mentioned in the preceding
paragraph in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
9.3 According to the information furnished to us, there were no amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax that have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report, except
S. Nature of Dues Applicable Amount Pending
No Statute (in Rs.) Before
Excise duty and Central Excise Commissioner
1. 97,10,577
related demands Act 1944 of Appeals
Sales tax Acts Various
Sales tax and
2. of various
state 11,03,86,239 appellate
related demands Govts. authorities
10. According to the information and explanations furnished to us by
the company, it had no accumulated losses at the end of the financial
year, and it did not incur cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
furnished to us by the company, there were no defaults in repayment of
dues to financial institutions, banks or debenture holders at the date
of the Balance Sheet.
12. According to the information furnished to us, the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
15. In our opinion, and according to the information furnished to us,
there are no guarantees outstanding as at the year end that are given
by the company for loans taken by subsidiary company from banks.
16. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
funds raised on short-term basis have not been used for long-term
investment.
18. According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Act.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
20. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
21. According to the information and explanations furnished to us, and
based on the audit procedures generally adopted by us, we report that,
during the year, no fraud on or by the company has been noticed or
reported that is either significant or could have caused a material
misstatement in the financial statements.
For BRAHMAYYA & CO
Chartered Accountants
Firm Regd No 000513S
Sd/-
T.V. RAMANA
Partner
Place: Chennai (ICAI Memb.No.200523)
Date: 27th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of The KCP Limited, as at
31st March 2010, its Profit and Loss Account for the year ended on that
date annexed thereto, and its cash-flow statement for the year ended on
that date. These financial state- ments are the responsibility of the
Companys man- agement. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with audit- ing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstate- ment. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and sig- nificant estimates
made by management, as well as evaluating the overall financial
statement presenta- tion. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Government of India in terms of sub-Section (4A) of Section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
a. We have 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 such
books;
c. The Balance Sheet and Profit and Loss Account and Cash-flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet and Profit and Loss account and
the Cash-flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010,
ii. In the case of the Profit and Loss Account, of the profit for the
year ended on that date,
iii. In the case of the cash-flow statement, of the cash-flows of the
company for the year ended on that date
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1.1 According to the information and explanations furnished to us, the
company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1.2 According to the information and explanations furnisned to us, the
company has physically verified some of its fixed assets during the
year, in accordance with a phased programme of verification, which, in
our opinion, is reasonable, having regard to the size of the company
and the nature of the assets. As per the said information and
explanations, no material discrepancies were noticed on such
verification carried out during the year.
1.3 According to the information and explanations furnished to us, the
company has not disposed of a substantial part of its fixed assets
during the year.
2.1 According to the information and explanations furnished to us, the
company has physically verified its inventories during the year. In our
opinion, the frequency of such verification is reasonable.
2.2 In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business
2.3 According to the information furnished to us, the company is
maintaining proper records of its inventory and the discrepancies if
any noticed on verification between the physical stocks and the book
records were not material, and have been properly dealt with in the
books of account.
3.1 According to the information and explanations furnished to us, the
company has not granted any loans to companies, firms or other parties
covered by the register maintained under Section 301 of the Companies
Act 1956, at the beginning of the year or during the year, and
consequently reporting under sub-clauses b, c and d of clause 4(iii) of
the Order does not arise during the year.
3.2 According to the information and explanations furnished to us, the
company has, at the date of the Balance Sheet under report, taken loans
aggregating to Rs. 16.25 crores from three directors, Rs.0.91 crores
from a relative of the director and Rs. 6.10 crores from a company,
covered by the register maintained under Section 301 of the Companies
Act 1956.
3.3 In our opinion, the rate of interest and other terms and conditions
on which loans have been taken by the company from companies, firms or
other parties covered by the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
3.4 According to the information and explanations furnished to us, the
company has been regular in repaying the principal and interest amounts
as stipulated on the loans taken by it from the parties listed in the
registers maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, during the course of
our audit, we have not come across any instances of major weaknesses in
internal control that require correction and have so continued without
correction.
5.1 Based on the information and explanations given to us, we are of
the opinion that the transactions that are required to be entered in
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
5.2 In our opinion and according to the information and explanations
given to us, the transactions which have been entered into, pursuant to
contracts that have been entered in the register maintained under
Section 301 of the Companies Act 1956, have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58A and 58AA and other applicable provisions of the Companies Act, 1956
and Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. According to the information
furnished to us, no Order has been passed on the company by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal for non-compliance with the provisions
of Sections 58A and 58AA of the Companies Act 1956.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account and records
maintained by the company at its cement and electric power generation
units pursuant to the Rules made by the Central Government for the
maintenance of Cost Records under section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However, we are not
required to and have not carried out a detailed audit of the same.
9.1 According to the information furnished to us, the company has
generally been regular in depositing with the appropriate authorities,
the undisputed statutory dues including Provident Fund, Investor
Education Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues applicable to it.
9.2 There were no undisputed statutory dues mentioned in the preceding
paragraph in arrears, as at the date of the Balance Sheet under report,
for a period of more than six months from the date they became payable.
9.3 According to the information furnished to us, there were no amounts
of Sales Tax, Customs Duty, Excise Duty, Cess, Income Tax, Wealth Tax,
Service Tax that have been disputed by the company, and hence, were not
remitted to the concerned authorities at the date of the Balance Sheet
under report, except
S. Applicable Amount Pending
Nature of Dues
No Statute (in Rs.) Before
1 Excise duty and Central Excise 65,89,231 Commissioner
related demands Act 1944 of Appeals
Commissioner
2. Wealth Tax Wealth Tax Act 13,51,416
1957 of Appeals
Sales tax and Sales tax Acts Various
3. of various state 11,02,03,845 appellate
related demands Govts authorities
10. According to the information and explanations furnished to us by
the company, it had no accumulated losses at the end of the financial
year, and it did not incur cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
furnished to us by the company, there were no defaults in repayment of
dues to financial institutions, banks or debenture holders at the date
of the Balance Sheet.
12. According to the information furnished to us. the company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures, and other securities.
13. In our opinion and according to the information and explanations
furnished to us, the company is not a chit fund or a nidhi / mutual
benefit fund/ society and hence, the requirements of clause 4(xiii) of
the Companies (Auditors Report) Order 2003 are not applicable to the
company during the year under report.
14. According to the information furnished to us, the company is not
dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the requirements of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
15. In our opinion, and according to the information and explanations
furnished to us, the term loans taken by the company have been applied
for the purpose for which they were raised.
16. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that funds raised on short-term basis have not been used for long-term
investment.
17. According to the information and explanations furnished to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
section 301 of the Act.
18. According to the information and explanations given to us, the
company has not issued any debentures during the year under report.
19. The company has not raised any moneys through public issue of its
securities during the year, and the question of end use of such moneys
does not arise during the year.
20. According to the information and explanations furnished to us, and
based on the audit procedures generally adopted by us, we report that,
during the year, no fraud on or by the company has been noticed or
reported that is either significant or could have caused a material
misstatement in the financial statements.
For BRAHMAYYA & Co
Chartered Accountants
Firm Regd No 000513S
Place: Chennai T. V. Ramana
Partner
Date: 28th May, 2010 (ICAI Memb. No. 200523)
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