Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of KKALPANA INDUSTRIES (INDIA) LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015, as amended, 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative announcements issued by Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
4. 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 auditorâs 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 Companyâs preparation of the 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
5. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
6. 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 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, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
7. The corresponding financial information of the Company as at and for the year ended 31 March, 2017 and the transition date opening balance sheet as at 1st April, 2016 included in these Ind AS financial statements, are based on the previously issued financial statements for the years ended 31st March, 2017 and 31st March, 2016,prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion vide our audit report dated 30th May, 2017 and 30thMay, 2016 respectively which is also explained in Notes to the attached financial statements. These financial statements have been adjusted for differences in accounting principles to comply with Ind AS and such adjustments on transition to Ind AS which has been approved by the Companyâs Board of Directors have been audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. As required by Section 143(3) of the Act, based on our audit, we report,to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law 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, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the 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 Act.
f) With respect to the adequacy of the 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 of the Company.
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, 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 as stated in note 36 to the financial statement.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the company.
Annexure - A to the Independent Auditorâs Report
(Referred to in paragraph 8 with the heading âReport on Other Legal and Regulatory Requirementsâ section of our report of even date in respect to statutory audit of Kkalpana Industries (India) Limited for the year ended 31st March 2018)
We report that:
i. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) As per the information and explanations given to us, physical verification of fixed assets have been carried out in terms of the phased program of verification of its fixed assets adopted by the Company and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having regard to size of the Company and nature of its business.
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 immovable properties are held in the name of the Company.
ii. As per the information and explanations given to us, the inventories have been physically verified at reasonable intervals during the year by the management and no material discrepancies between book stock and physical stock have been found.
iii. The Company has not granted any loan to parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has not given any loan, not made any investment and have not provided any guarantee in respect of which Section 185 and 186 of the Companies Act, 2013 are applicable. Accordingly, the paragraph 3(iv) of the Order is not applicable.
v. According to information and explanations given to us, the Company has not accepted any deposits from public during the year.
vi. We have broadly reviewed the books of accounts maintained by Company in respect of product, where pursuant to the rule made by the Central Government of India the maintenance of cost records has been prescribed under section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie, the prescribed records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is regular in depositing undisputed statutory dues including provident fund, employeeâs state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeeâs state insurance, income tax, sales tax, service tax, goods and 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 explanation given to us, the dues of Income Tax , sales tax, duty of excise, service tax and value added tax which have not been deposited on account of any dispute and the forum where the dispute is pending as on 31st March, 2018 are as under :-
Name of the statute |
Nature of dues |
Amount Rs. in Lacs |
Assessment Year |
Forum where dispute is pending |
Income Tax Act 1961 |
Income Tax Income Tax |
25.46* 123.02* |
2012-13 2011-12 |
CIT (A) CIT (A) |
Income Tax |
153.16 |
2010-11 |
ITAT |
*Net of amounts paid under protest.
viii. The Company has not defaulted in repayment of dues to Financial Institutions or Banks or Government or Debenture holders.
ix. The Company did not raise any money by way of initial public offer or further public offer including debt instruments during the year. However the Company has raised Term Loan during the year and has applied the same for the purpose for which term loans are raised.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
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 managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
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 give 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 examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 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.
ANNEXURE - B TO THE INDEPENDENT AUDITORâS REPORT
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 KKALPANA INDUSTRIES (INDIA) LIMITED (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the 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 (âICAIâ). 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 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 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 company''s 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 company''s 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 company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over 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 2018, 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 B.Mukherjee & Co.,
Chartered Accountants
Firm Registration No : 302096E
Place: Kolkata B.Mukherjee
Date: 30th day of May, 2018 (Partner)
Mem No : 002941
Mar 31, 2016
TO
THE MEMBERS OF
KKALPANA INDUSTRIES (INDIA) LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of Kkalpana Industries (India) Ltd ("The Company"), which comprise the Balance sheet as at 31st March, 2016, and the Statement of Profit & Loss and 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 Financial Statements
2. The Company''s Management is responsible for the matters in section 134(5) of the Companies Act, 2013 ("The Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position and financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the accounting standards specified u/s 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision 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 control, 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 misstatements, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the act and the Rules made there under.
4. We conducted our audit in accordance with the standards on auditing specified u/s 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements free from material miss-statements.
5. 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 risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of financial Statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2016;
(b) In the case of the Statement of Profit & Loss, of the profit for the year ended on that date.
(c) In the case of Cash Flow Statement of the cash flows of the company for the year ended on that date. Report on Other Legal and Regulatory Requirements
8. 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, based on the comments in the auditorâs report, we give in the Annexure A, statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9. As required by Section 143(3) of the Act, we report, to the extent applicable that :
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received,
(c) The Balance Sheet and Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts and with the returns ;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the Directors as on 31st March, 2016 taken on record by the Board of Director, none of the directors are disqualified as on 31st, March 2016 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the 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 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 positions in its financial statements in accordance with the generally accepted accounting practice-also refer Note 26 to the Financial Statements.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Protection Fund by the company.
Annexure A to the Independent Auditor''s Report- 31st March 2016
(Referred to in our report of even date)
The Annexure referred to in Independent Auditor''s Report to the members of the Company on the financial statements for the year ended 31st March 2016, we report that:
(i) In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular program of verification which, in our opinion, provides a physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on 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 immovable properties are held in the name of the company.
(ii) In respect of its Inventory:
The inventory, except goods-in-transit, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) In respect of Loans taken or granted:
In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In respect of Loans to Directors and Investments by Company :
The Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of investments made or loans or guarantee or security provided to the parties covered under Section 186.
(v) In respect of Deposits :
According to the information and explanation given to us, the company has not accepted any deposit during the year and accordingly the question of complying with section 73 and 76 of the Companies Act, 2013 does not arise. In respect of unclaimed deposits, the Company has complied with the provisions of sections 74 and 75 or any other relevant provisions of the Companies Act. According to the information and explanation given to us, no Order has been passed by the Company Law Board, or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal on the Company.
(vi) In respect of Cost Records :
We have broadly reviewed the Cost Records maintained by the Company pursuant to the Companies (Cost Records & Audit) Rules, 2014, as amended and prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed Cost Records have been made and maintained. We have, however, not made a detailed examination of the Cost records with a view to determine whether they are accurate or complete.
(vii) In respect of whether the Company is regular in depositing its Statutory dues :
a) According to the information and explanation given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues Provident Fund, Income tax, sales tax, Employees State Insurance, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees'' state insurance and duty of excise.
According to the information and explanation given to us, no undisputed amounts payable in respect
of provident fund, income tax, sales tax, value added tax, duty of customs, service 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 are no duties of Income Tax, Sales Tax, Value added Tax, service Tax, Duty of Customs, Duty of Excise which have not been deposited with the appropriate authorities on account of any dispute.
(viii)In respect of Loans from Bank/Financial Institution :
According to the information and explanation given to us, the Company has not defaulted in repayment of dues to any Financial Institution, Bank or to Debenture holders during the year.
(ix) In respect of moneys raised by way of Initial Public Offer, Term Loans :
The Company did not raise money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
(x) In respect of frauds on or by the Company :
To the best of our knowledge and according to the information and explanation given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) In respect of Managerial Remuneration as per section 197 (schedule V) :
According to the information and explanations given to us, managerial remuneration has been provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In respect of Nidhi Company :
In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii)In respect of Transactions with the Related Parties :
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)In respect of Preferential allotment or Private placement of shares :
To the best of our knowledge and according to the information and explanation given to us, there was no preferential allotment or Private placement of shares or fully or partly convertible Debentures during the year under review.
(xv) In respect of Non-cash transaction with Directors or persons connected with him :
To the best of our knowledge and according to the information and explanation given to us, there was no non-cash transaction with any Director or persons connected with him during the year. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi)In respect of registration under section 45-IA of the Reserve Bank of India Act, 1934 :
The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Annexure B to the Independent Auditor''s Report- 31st March 2016
(Referred to in our report of even date)
Report on the Internal Financial Controls under clause (I) of Sub-section 3 of Section 143 of the Companies Act, 2013. ("The Act")
We have audited the internal financial controls over financial reporting of KKALPANA INDUSTRIES (INDIA) LTD. ("The Company"), as of 31st March 2016 in conjunction with our audit of the Standalone financial statements of the Company for the year ended on that date.
Management''s 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(''ICAI'').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 Companies Act,2013. Auditors'' 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 "Guidance Note") 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 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s internal financial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of record that ,in reasonable detail, accurately and fairly reflect the transaction and deposition 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of 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 March2016 ,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 B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 30th May, 2016 (Membership No. 002941)
Mar 31, 2015
1. We have audited the accompanying financial statements of KKALPANA
INDUSTRIES (INDIA) LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, and the Statement of Profit and Loss for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the matters in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these financial statements that give a true and fair
view of the financial position and financial performance of the Company
in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes the maintenance of adequate
accounting records in accordance with the provision 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
4. We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material mis-statement.
5. 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 judegment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view 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 Company's Directors, as well as
evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements, give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit & Loss, of the profit for
the year ended on that date.
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section(11) of section 143 of the Act, based on the comments in the
auditor's report, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9. As required by Section 143(3) of the Act, we report, to the extent
applicable that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 and proper returns adequate for the purposes of our audit have
been received,
(c) The Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account and with the
returns;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Director, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to other matters to be included in the Auditors'
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 positions in its financial statements in accordance with the
generally accepted accounting practice - also refer Note 26 to the
Financial Statements.
ii. The company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Protection Fund by the Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 8 under 'Report on other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its Fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(ii) In respect of its Inventory:
(a) As explained to us, the inventories other than material lying with
third parties (which have substantially been confirmed) were physically
verified during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) In respect of Loans Taken or Granted:
The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) In respect of Internal Control Procedure:
In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with
the size of the Company and the nature of its business for the purchase
of inventory and fixed assets and for the sale of goods and services.
During the course of our audit, we have not observed any major weakness
in such internal control system.
(v) In respect of Deposits:
According to the information and explanations given to us, the Company
has not accepted any deposit during the year and accordingly the
question of complying with section 73 and 76 of the Companies Act 2013
does not arise. In respect of unclaimed deposits, the Company has
complied with the provisions of Sections 74 and 75 or any other
relevant provisions of the Companies Act. According to the information
and explanations given to us, no Order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal on the Company.
(vi) In respect of Cost Records:
We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014, as
amended and prescribed by the Central Government under sub-section (1)
of Section 148 of the Companies Act, 2013, and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of the cost records
with a view to determine whether they are accurate or complete.
(vii) In respect of whether the company is regular in depositing its
Statutory dues:
According to the information and explanations given to us and according
to the books and records as produced and examined by us, in our
opinion:
(a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax, Sales
tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added
Tax, Cess and other material statutory dues as applicable with the
appropriate authorities.
(b) The Company has been regular in transferring amounts to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
thereunderwithin time.
(viii) In respect of Accumulated Profit/ Loss:
The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) In respect of Loans from Bank/ Financial Institutions:
According to the information and explanations given to us, the Company
has not defaulted in repayment of dues to any financial institution,
bank or to debenture holders during the year.
(x) In respect of Guarantee for Loans taken by other:
In our opinion and according to the information and explanations given
to us, the terms and conditions of the guarantees given by the Company
for loans taken by others from banks and financial institutions are
not, prima facie, prejudicial to the interests of the Company.
(xi) In respect of Term Loans Obtained:
In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purposes for which they
were obtained.
(xii) In respect of any Frauds on or by the Company:
To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no significant
fraud on the Company has been noticed or reported during the year.
FOR B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 27th June, 2015 (Membership No. 002941)
Mar 31, 2014
We have audited the accompanying financial statements of Kalpena
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March , 2014, the Statement of Profit and Loss and the Cash
Flow Statement f or the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting 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 13th September 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013, and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not f or the purpose of expressing an opinion on the
effectiveness of the company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we gi ve in the Annexure a
statement on the matters specified 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 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, 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
and
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date
i) In respect of fixed assets
a) The company is generally maintaining proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As per the information and explanation given to us, fixed assets are
physically verified by the management in a phased periodical manner,
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. The discrepancies noticed on such
verification were not material.
c) There was no substantial disposal of the Fixed Assets. ii) In
respect of its inventories
a) As explained to us, the inventories of the company except stock in
transit, have been physically verified by the management at reasonable
intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
accounts.
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
301 of the Act.
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the Register maintained under Section 301 of
the Act.
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the products
of the company are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
generally an adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory a nd fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) The Company has not accepted any deposit from public, therefore the
provisions of Clause(vi) of paragraph 4 of the Order are not applicable
to the Company.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
company in respect of product where pursuant to rules prescribed by the
central government, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of sec 209 of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detail examination of
the cost record with a view to determine whether they are accurate or
complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income- tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities. As at 31st March,
2014, there were no arrears in respect of the aforesaid dues 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 are
no material dues of Wealth tax, Income Tax, Service Tax, Custom Duty
and Cess which have not been deposited with the appropriate authorities
on account of any dispute. However, according to the information and
explanations given to us, the following dues of, Sales tax, and Excise
Duty, have not been deposited by the Company on account of disputes:
Name of Statue Nature of Dues Amount Period of which
(Rs.In Thousands) the amount relates
Excise Act Excise Duty 2,935 F.Y. 1996-97
Value Added Tax Value Added Tax 44,705 F.Y. 2004-05
6,093 F.Y. 2005-06
34,441 F.Y. 2006-07
Central Sales Tax Central Sales Tax 6,912 F.Y. 2004-05
21,757 F.Y. 2005-06
10,110 F.Y. 2006-07
Name of Statute Forum where dispute is pending
Excise Act CEGAT
Value Added Tax Jt. Comm. of Sales Tax, Beliaghata, Kolkata
Central Sales Tax Jt. Comm. of Sales Tax, Beliaghata, Kolkata
x) There are no accumulated losses of the company. The company has not
incurred cash loss during the financial year covered by our audit and
the i mmediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution and banks as at the Balance Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institution during the year.
xvi) According to the information & explanation given to us, the term
loan are being applied by the company for the purpose for which the
loan were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the year.
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS,
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 30th May 2014 (Membership No. 002941)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Kalpena
Industries Limited ("the Company"), which comprise the Balance Sheet as
at 31st March , 2013, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") and in
accordance with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and maintenance
of internal control 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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("the
Order") 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 specified 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 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, 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 Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date
i) In respect of fixed assets
a) The company is generally maintaining proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As per the information and explanation given to us, fixed assets are
physically verified by the management during the year, which in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. The discrepancies noticed on such verification
were not material.
c) There was no substantial disposal of the Fixed Assets. ii) In
respect of its inventory
a) As explained to us, the inventories of the company except stock in
transit, have been physically verified by the management at reasonable
intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
accounts.
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section
301 of the Act. b) According to information and explanations given to
us, the Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the Register maintained
under Section 301 of the Act.
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the products
of the company are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
generally an adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) The Company has not accepted any deposit from public in terms of
section 58A and 58AA and the relevant provisions of the Companies Act,
1956.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
company in respect of product where pursuant to rules prescribed by the
central government, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of sec 209 of the Act and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detail examination of
the cost record with a view to determine whether they are accurate or
complete. ix) a) According to the information and explanations given
to us and the records of the Company examined by us, in our opinion,
the Company is generally regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income- tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities. As at 31st March''
2013, there were no arrears in respect of the aforesaid dues for a
period of more than six months from the date they became payable.
x) There are no accumulated losses of the company. The company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution and banks as at the Balance Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institution during the year.
xvi) According to the information & explanation given to us, the term
loan are being applied by the company for the purpose for which the
loan were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR B. MUKHERJEE & CO.
CHARTERED ACCOUNTANTS,
Firm Registration No. 302096E
B. MUKHERJEE
Place: Kolkata PARTNER
Date: 14th August 2013 (Membership No. 002941)
Mar 31, 2012
1) We have audited the attached Balance Sheet of Kalpena Industries
Ltd. as at 31st March 2012 and the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. 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.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order 2004
(together the "Order"), issued by the Central Government of India in
terms of sub- section (4A) of section 227 of "The Companies Act., 1956
of India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4) Further to our comments in the Annexure referred to in paragraph 3
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
those 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, Balance Sheet, Profit and Loss Account 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 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (I) 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 31st March 2012 and 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 for the year
ended on that date.
Annexure refereed to in paragraph 3 of the Auditors Report of even date
to the members of Kalpena Industries Ltd. on the accounts of for the
year ended 31st March 2012.
i) a) The company is generally maintaining proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As per the information and explanation given to us, fixed assets are
physically verified by the management during the year, which in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. The discrepancies noticed on such verification
were not material.
c) There was no substantial disposal of the Fixed Assets.
ii) a) As explained to us, the inventories of the company except stock
in transit, have been physically verified by the management at
reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
accounts.
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section
301 of the Act.
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties listed in the Register maintained under Section 301 of
the Act.
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the products
of the company are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
generally an adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory and fixed assets and the sale of goods and
services. Read with the above, during the course of our audit, we have
not observed any major weakness or continuing failure to correct any
major weakness in the internal control system of the company in respect
of these areas.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) The Company has not accepted any deposit from public in terms of
section 58A and 58AA and the relevant provisions of the Companies Act,
1956.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
company in respect of product, where pursuant to the rules need by the
central government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of sec 209 of the Act and
are of the opinion that prima facie, the prescribed accounts and
records have being made and maintained. We have not, however, made a
detail examination of the record with a view to determine wheter they
are accurate or complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income- tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities. As at 31st March'
2012, there were no arrears in respect of the aforesaid dues for a
period of more than six months from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess as applicable as at 31st March' 2012, which have not been
deposited on account of a dispute are as follows -
Name of Statue Nature of Dues Amount Period of
which Forum where
(Rs. In
Thousands) the amount
relates dispute is
pending
Excise Act Excise Duty 2,935 F.Y. 1996-97 CEGAT
Value Added Tax Value Added
Tax 44,705 F.Y. 2004-05 Jt. Comm. of
6,093 F.Y. 2005-06 Sales Tax,
34,441 F.Y. 2006-07 Beliaghata,
Kolkata
Central Sales Tax Central Sales
Tax 6,912 F.Y. 2004-05 Jt. Comm. of
21,757 F.Y. 2005-06 Sales Tax,
10,110 F.Y. 2006-07 Beliaghata,
Kolkata
x) There are no accumulated losses of the company. The company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution and banks as at the Balance Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institution during the year.
xvi) According to the information & explanation given to us, the Term
Loan are being applied by the company for the purpose for which the
loan were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment.
xviii)The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the
year.
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
For D.C. DHAREWA & CO.
Firm Registration No. 322617E
CHARTERED ACCOUNTANTS,
(D.C. DHAREWA)
PROPRIETOR.
Date : 24th August, 2012 (MEMBERSHIP NO. 53838)
Mar 31, 2010
1) We have audited the attached Balance Sheet of Kalpena Industries
Ltd. as at 31st March 2010 and the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2) We conducted our audit in accordance with the 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.
3) As required by the Companies (Auditors Report) Order, 2004 (as
amended) issued by the Central 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.
4) Further to our comments in the Annexure referred to in paragraph 3
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
those 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, Balance Sheet, Profit and Loss Account 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 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (I) 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 31st March 2010 and
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 for the
year ended on that date.
Annexure referred to in paragraph 3 of the Auditors Report of even date
to the members of Kalpena Industries Ltd. of the accounts for the year
ended 31st March, 2010.
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed Assets.
b) As explained to us, all fixed assets
have not been physically verified by the management during the year but
there is a regular programme of verification which, in our opinion, is
reasonable having regard to the size of the company and the nature of
those assets. No material discrepancies were noticed on such
verification.
c) There was no substantial disposal of the Fixed Assets.
ii) a) As explained to us, inventories have been physically verified
during the year by the management at reasonable internals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
accounts.
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section
301 of the Act.
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties listed in the Register maintained under Section 301 of
the Act.
iv) 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. During the course of our audit, we have
not observed any continuing failure to correct to major weaknesses in
internal controls.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) According to the information and explanations given to us, the
Company has not accepted any deposit from public.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us the
Central Government has not prescribed for the maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales-tax, wealth tax,
service tax, custom duty, excise duty, cess and other material
statutory dues as applicable, with the appropriate authorities. As
at 31st March 2010, there were no arrears in respect
of the aforesaid dues for a period of more than six months from the
date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined
by us, the particulars of dues of income-tax, sales-tax, wealth tax,
service tax, customs duty, excise duty and cess as applicable as at
31st March 2010, which have not been deposited on account of a dispute
are as follows -
Name of Nature Amount Period Date of
Statue of Dues (Rs. in of which Payment
Thousands) the amount
relates
Excise Act Excise Duty 2935 F. Y. 1996-97 CEGAT
x) There are no accumulated losses of the company. The company has not
incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not
defaulted in repayment of dues to a financial institution and banks as
at the Balance Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of
shares, debentures and other securities.
xiii) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are
not applicable to the Company.
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken
by others from banks or financial institutions during the year.
xvi) In our opinion, and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purpose for which they were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long- term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
xviii) In our opinion and according to the information and explanations
given to us, where the Company has created Share Capital Suspense
Account for allotment of shares as per Scheme of Amalgamation approved
by the Honble High Court of Calcutta on 26th August, 2010 and filed
with the Registrar of Companies on 27th August, 2010, consideration
paid to the shareholders of the amalgamating transferor companies is,
in our opinion, not prejudicial to the interest of the company.
xix) There are no debentures issued and outstanding at the year end.
ii) The Company has not raised any money by public issue during the
year.
iii) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
For D.C.Dharewa & Co
Chartered Accountants
Firm Registration No : 322617E
(D.C.Dharewa)
Date: 1st Day of September, 2010 Proprietor
Place: Kolkata Membership No. 53838