Mar 31, 2023
Independent Auditorâs Report
To the Members of
J. Kumar Infraprojects Limited
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS
OPINION
We have audited the accompanying Financial Statements
of J. Kumar Infraprojects Limited (âthe Companyâ),
which comprise of the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss (including other
comprehensive income), Statement of Cash Flows and
Statement of Changes in Equity for the year then ended
and a summary of significant accounting policies and
other explanatory information.
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 Companies Act, 2013 (ââthe 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 March 31,
2023, and its profit including comprehensive income,
changes in equity and its cash flows for the year ended
on that date.
BASIS FOR OPINION
We conducted our audit of the Financial Statements
in accordance with the Standards on Auditing (SAs)
specified under Section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards
are further described in the Auditor''s Responsibilities
for the Audit of the Financial Statements section of
our report. We are independent of the Company in
accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our
audit of the Financial Statements under the provisions
of the Companies Act, 2013 and the Rules thereunder,
and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion on the Financial Statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the Financial Statements of the current year.
These matters were addressed in the context of our audit
of the Financial Statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
RESPONSIBILITIES OF MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE FINANCIAL
STATEMENTS
The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act,
2013 (âthe Actâ) with respect to the preparation of these
Financial Statements that give a true and fair view of
the financial position, financial performance, changes
in equity and cash flows of the Company in accordance
with the accounting principles generally accepted
in India, including the Indian Accounting Standards
specified under section 133 of the Act read with the
Companies (Indian accounting standards) Rules 2015, as
amended. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR''S REPORT THEREON
The Company''s management and Board of Directors
are responsible for the other information. The other
information comprises of the information included in
the Company''s Annual Report, but does not include the
Financial Statements and our auditors'' report thereon.
Our opinion on the Financial Statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Financial Statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the Financial Statements
or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material
misstatement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
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.
In preparing the Financial Statements, the management
is responsible for assessing the Company''s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for
overseeing the Company''s financial reporting process.
AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF
THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance
about whether the Financial Statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor''s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users
taken on the basis of these Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:
⢠Identify and assess the risks of material
misstatement of the Financial Statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
⢠Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls system in place
and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
⢠Conclude on the appropriateness of management''s
use of the going concern basis of accounting in
preparation of Financial Statements and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Company''s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditors'' report to the related
disclosures in the Financial Statements or, if such
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditors'' report.
However, future events or conditions may cause the
Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and
content of the Financial Statements, including the
disclosures, and whether the Financial Statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with those charged with governance
of the Company regarding, among other matters, the
planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the Financial
Statements of the current period and are therefore
the key audit matters. We describe these matters in
our auditors'' report unless law or regulation precludes
public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
OTHER MATTER
We did not audit the Financial Statements and other
information of 21 Joint operations included in the
Financial Statements of the Company whose Financial
Statements/financial information reflect total assets of
H 84,154.24 Lakh (without intercompany elimination) as
at March 31, 2023 and total revenue of H 1,70,723.56
Lakh (without intercompany elimination) and total
profit/(loss) after tax(net) of H 2,087.62 Lakh (without
intercompany elimination) for the year ended on that
date, as considered in the Financial Statements.
The financial information of 5 joint operations have
been audited by the other auditors whose financial
information reflect total assets of H 76,878.58 Lakh
(without intercompany elimination) as at March 31,
or in any
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2023 and total revenues of H 1,70,481.37 Lakh (without
intercompany elimination) and total profit/(loss) after
tax (net) of H 2,098.22 Lakh (without intercompany
elimination) and whose reports have been furnished
to us by the management and for remaining 16 joint
operations, whose financial information reflect total
assets of H 7,275.67 Lakh (without intercompany
elimination) as at March 31, 2023 and total revenues
of H 242.19 Lakh (without intercompany elimination)
and total profit/(loss) after tax (net) of H 10.60 Lakh
(without intercompany elimination) un-audited financial
information and accounts certified by the management
have been furnished to us by the management, and
our opinion in so far as it relates to the amounts and
disclosures included in respect of these joint operations
and our report in terms of subsection (3) of section 143
of the Act, in so far as it relates to the aforesaid joint
operations, is based solely on the report of such other
auditors and accounts certified by the management.
Our opinion is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor''s Report)
Order, 2020 (âthe Orderâ), issued by the Central
Government of India in terms of sub- section (11)
of section 143 of the Companies Act, 2013, we give
in the Annexure âAâ a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
2. As required by Section 143(3) of the Act, we report
that:
a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books.
c) The Company does not have any branches.
Hence, the provisions of section 143(3)(c) is not
applicable.
d) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income, the
Statement of Changes in Equity and the Cash
Flow Statement dealt with by this Report are in
agreement with the books of account.
e) In our opinion, the aforesaid Financial Statements
comply with the Indian Accounting Standards
specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
f) In our opinion, there are no financial transactions
or matters which have any adverse effect on the
functioning of the Company.
g) On the basis of the written representations
received from the directors as on March 31,
2023 taken on record by the Board of Directors,
none of the directors is disqualified as on March
31, 2023 from being appointed as a director in
terms of Section 164(2) of the Act.
h) There is no adverse remark relating to the
maintenance of accounts and other matters
connected therewith.
i) 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
âAnnexure Bâ.
j) With respect to the other matters to be included
in the auditor''s report in accordance with the
requirements of section 197(16) of the Act, as
amended:
In our opinion to the best of our information
and according to the explanations given to us
the remuneration paid by the Company to its
directors during the year is in accordance with
the provisions of section 197 of the Act.
k) With respect to the other matters to be included
in the Auditor''s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our
information and according to the explanations
given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in
its Financial Statements;
ii. The Company did not have any long-term
contracts including derivative contracts; as
such the question of commenting on any
material foreseeable losses thereon does
not arise.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company.
iv. (a) The Management has represented that,
to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been advanced
or loaned or invested (either from borrowed
funds or share premium or any other sources
or kind of funds) by the Company to or in any
other person or entity, including foreign entity
(âIntermediariesâ), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company (âUltimate
Beneficiariesâ) or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries;
(b) The Management has represented, that,
to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received
by the Company from any person or entity,
including foreign entity (âFunding Partiesâ),
with the understanding, whether recorded in
writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest
in other persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party (âUltimate Beneficiariesâ) or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
Mar 31, 2018
Report on Financial Statements
1. We have audited the accompanying Ind AS financial statements of J. Kumar Infraprojects Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other comprehensive income), the Cash Flow Statement, the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
2. The Management and Board of Directors of the Company are responsible for the matter stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of financial statements that give a true and fair view of the states of affairs (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 (âInd ASâ) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgement and estimates that are reasonable and prudent; 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.
Auditorsâ 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 thereunder. 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 Ind AS financial statements are free from material misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the 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 and presentation of the 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 accounting policies used and the reasonableness of the accounting estimates made by companyâs management and Board of Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 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 including the Ind AS, of the financial position of the company as at March 31, 2018, its Financial Performance including Other comprehensive income and its Cash flows and Changes in equity for the year ended on that date.
Other Matters
7. We did not audit the financial statements and other financial information of 19 joint operations included in the Ind AS financial statements of the Company whose financial statements reflect total assets of Rs.1,51,156.51 Lakh as at March 31, 2018, total revenues of Rs.1,53,370.16 Lakh, total profit after tax (net) of Rs.2,345.35 Lakh and total comprehensive income (net) Rs.2,345.35 Lakh for the year ended on that date, as considered in the Ind AS financial statements. The financial statements and other financial information are unaudited whose records have been furnished to us by the management and our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the management.
During the year, the company has completed the assessment of its interest in all jointly controlled entities and based on the facts and circumstances and application of guidance given in Ind AS 111 concluded that all its jointly controlled entities are joint operations. Accordingly, adjustments have been made in the financials statements of the previous year to comply with the requirements of Ind AS 111.
Our opinion on the Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of above matters.
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 subsection (11)of Section 143 of the Act, we give in the âAnnexure Aâ statement on the matters specified in paragraphs 3 and 4 of the Order.
9. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including the statement of other comprehensive income, and the Cash Flow Statement and Statement of Changes dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS Financial Statements comply with the applicable Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules 2014;
e. In our opinion there are no observations or comments on the financial, which may have an adverse effect on the functioning of the company.
f. On the basis of written representations received from the directors as at March 31, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164(2) of the Act.
g. 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 âAnnexure Bâ
h. In our opinion and to the best of our information and according to the explanations gives to us, we report as under with respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018, on its financial positions in its financial statements.
ii. The Company did not have any long term contract including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
iv. The disclosures in financial statements regarding holdings as well as dealings in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016 have not been made since they do not pertain to the financial year ended March 31, 2018. However amounts as appearing in the audited Ind AS financial statements for the period ended March 31, 2018 have been disclosed.
The Annexure referred to in paragraph 8 our report of the even date to the Members of the Company on the Financial Statement for the year ended March 31, 2018 on the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets;
(b) As explained to us, fixed assets have been physically verified by the management at regular Intervals, as informed to us no material discrepancies were noticed on such verification.
(c) As explained to us, title deeds of all the immovable properties are in the name of the company.
2 (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. The frequency of the verification is reasonable and no material discrepancies were noticed on such verification.
3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.
4. According to the information and explanations given to us and on the basis of our examination of the books of account, the company has not granted Loans, Investments, guarantees and security as per section 185 and 186 of Companies act 2013.
5. The Company has not accepted any deposits from the public covered under section 73 to 76 of the Companies Act, 2013.
6. We have reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013, and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however have not made a detailed examination of the records with a view to determine whether they are accurate or complete however, Cost Audit has been prescribed for the company and cost audit has been conducted by the Cost Auditor.
7. (a) According to the information and explanation given to us and based on the records of the company examined by us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Employee Provident Fund, Employee State Insurance Scheme, Income tax, VAT, Service Tax, Excise duty, Custom duty, Cess and other statutory dues, as applicable.
(b) According to the information and explanation given to us and based on the records of the company examined by us, there are no dues of Employee Provident Fund, Employee State Insurance Scheme, Income tax, Service Tax, Excise duty, Custom duty, etc. which have not been deposited on account of any disputes except the following:-
Nature of Dues |
Period to which the amount relates |
Forum where dispute is pending |
Disputed Amount |
Amount paid under protest |
Value added Tax |
2005-06 |
Tribunal |
48.80 |
1.21 |
2006-07 |
Tribunal |
912.22 |
29.00 |
|
2007-08 |
Tribunal |
956.40 |
33.00 |
|
2008-09 |
Tribunal |
1,378.83 |
49.00 |
|
2012-13 |
Joint Commissioner of Sales tax |
284.31 |
100.00 |
|
2013-14 |
Joint Commissioner of Sales tax |
200.47 |
- |
|
TOTAL |
3,781.03 |
212.21 |
8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions or banks as at balance sheet date.
9. According to the records of the company examined by us and the information and explanation given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) / Follow-on-offer and the money raised by term loan of Rs.183 Crore are applied for the purposes for which they are raised.
10. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the company, noticed or reported during the year, nor have we been informed of any such case by the management.
11. According to the records of the company examined by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the companies act.
12. The company is not a Nidhi company hence this clause is not applicable
13. According to the records of the company examined by us and the information and explanation given to us, all transactions with the related parties are in compliance with section 177 and 188 of companies Act,2013 and the details have been disclosed in the financial statement as required by applicable accounting standards
14. According to the records of the company examined by us and according to the information and explanation provided to us, the company has not made any private allotment of shares during the year.
15. According to the records of the company examined by us and the information and explanation given to us, the company has not entered into any non-cash transactions with directors or persons connected with them covered under section 192 of the Act.
16. According to the records of the company examined by us and the information and explanation given to us the company is not required to be registered under section 45 IA of the Reserve Bank of India Act.1934.
âANNEXURE Bâ 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 J. Kumar Infraprojects Ltd, the Company as of March 31, 2018 in conjunction with our audit of the financial statement of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Board of Directorâs 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 (the âGuidance Noteâ) 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 the respective 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 TODI TULSYAN & CO.
CHARTERED ACCOUNTANTS
(FRN : 002180C)
DILIP KUMAR
PARTNER
Membership No.054575
Place: Mumbai
Date: May 29, 2018
Mar 31, 2017
INDEPENDENT AUDITOR''S REPORT
To the Members of
J. Kumar Infraprojects Limited Report on Financial Statements
1. We have audited the accompanying Standalone Ind AS Financial Statements of J. Kumar Infraprojects Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss (including Other comprehensive income), the Cash Flow Statement, the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Management and Board of Directors of the Company are responsible for the matter stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of Standalone financial statements that give a true and fair view of the states of affairs (financial position), profit or loss (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'') specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgment and estimates that are reasonable and prudent; 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.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on these Standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the Auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation and presentation 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 accounting policies used and the reasonableness of the accounting estimates made by company''s management and Board of Directors, as well as evaluating the overall presentation of the Standalone Ind AS financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Opinion
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 including the Ind AS, of the financial position of the company as at March 31, 2017, its Financial Performance including Other comprehensive income and its Cash flows and Changes in equity for the year ended on that date.
Other Matters
7. The Company had prepared sets of statutory financial statements for the year ended March 31, 2016 and March 31, 2015 in accordance with Accounting Standard prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) on which we issued auditor''s reports to the shareholders of the Company dated May 24, 2016 and May 29, 2015, respectively. These financial statements have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have also been audited by us. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements.
8. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11)of Section 143 of the Act, we give in the âAnnexure Aâ statement on the matters specified in paragraphs 3 and 4 of the Order.
9. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS Financial Statements comply with the applicable Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e. In our opinion there are no observations or comments on the financial, which may have an adverse effect on the functioning of the company.
f. On the basis of written representations received from the directors as at March 31, 2017, taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2017, from being appointed as a director in terms of section 164(2) of the Act.
g. 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 âAnnexure Bâ
h. In our opinion and to the best of our information and according to the explanations gives to us, we report as under 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:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2017, on its financial positions in its financial statements.
ii. The Company did not have any long term contract including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
iv. The company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016 and these are in accordance with the books of accounts maintained by the company. Based on audit procedure and relying on the management representation we report that the disclosures are in accordance with books of accounts maintained by the company and as produced to us by management.
The Annexure referred to in paragraph 8 our report of the even date to the Members of the Company on the Standalone Financial Statement for the year ended March 31, 2017 on the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
I. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets;
(b) As explained to us, fixed assets have been physically verified by the management at regular Intervals, as informed to us no material discrepancies were noticed on such verification.
(c) As explained to us, title deeds of all the immovable properties are in the name of the company.
2 As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. The frequency of the verification is reasonable and no material discrepancies were noticed on such verification.
3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanation given to us, the company has complied the provision of Section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public covered under section 73 to 76 of the Companies Act, 2013.
6. We have reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013, and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete however, Cost Audit has been prescribed for the company and cost audit has been conducted by the Cost Auditor.
7. (a) According to the information and explanation given to us and based on the records of the company examined by us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Employee Provident Fund, Employee State Insurance Scheme, Income tax, VAT, Service Tax, Excise duty, Custom duty, Cess and other statutory dues, as applicable.
(b) According to the information and explanation given to us and based on the records of the company examined by us, there are no dues of Employee Provident Fund, Employee State Insurance Scheme, Income tax, VAT, Service Tax, Excise duty, Custom duty, etc. which have not been deposited on account of any disputes.
8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions or banks as at balance sheet date.
9. According to the records of the company examined by us and the information and explanation given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) / Follow-on-offer and the money raised by term loan of '' 4,478.56 Lakhs are applied for the purposes for which they are raised.
10. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the company, noticed or reported during the year, nor have we been informed of any such case by the management.
II. According to the records of the company examined by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.
12. The company is not a Nidhi company hence this clause is not applicable
13. According to the records of the company examined by us and the information and explanation given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statement as required by applicable Accounting Standards
14. According to the records of the company examined by us and according to the information and explanation provided to us, the company has not made any private allotment of shares during the year.
15. According to the records of the company examined by us and the information and explanation given to us, the company has not entered into any noncash transactions with directors or persons connected with them covered under section 192 of the Companies Act, 2013.
16. According to the records of the company examined by us and the information and explanation given to us, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act.1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of J. Kumar Infraprojects Ltd, the Company as of March 31, 2017 in conjunction with our audit of the financial statement of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Board of Directorâs 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 (the âGuidance Noteâ) 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 the respective 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgments, 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 March 31, 2017, based on the internal control over financial reporting criteria established by the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR GUPTA SAHARIA & CO. FOR TODI TULSYAN & CO.
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
(FRN : 103446W) (FRN : 002180C)
PAWAN GUPTA DILIP KUMAR
PARTNER PARTNER
Membership No.071471 Membership No.054575
Mumbai, May 29, 2017 Mumbai, May 29, 2017
Mar 31, 2016
To the Members of
J. Kumar Infraprojects Limited
Report on Financial Statements
1. We have audited the accompanying financial statements of J. Kumar Infraprojects Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31st, 2016, and the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Management and Board of Directors of the Company are responsible for the matter stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 judgement and estimates that are reasonable and prudent; 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' 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 and the order under Section 143 (11) of the Act. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation and presentation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by company''s management and Board of Directors, as well as evaluating the overall presentation of the financial statements.
5. 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
6. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the company as at 31st March 2016, its profit and its Cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements.
7. As required by the Companies (Auditor''s Report) Order, 2015 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11)of Section 143 of the Act, we give in the Annexure â Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Financial Statements comply with the applicable Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directors as at March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 âBâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g. In our opinion and to the best of our information and according to the explanations gives to us, we report as under 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:
i. The company does not have any pending litigation which would impact its financial position.
ii. The Company does not have any long term contract including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
ANNEXURE âAâ TO INDEPENDENT AUDITORSâ REPORT
The Annexure referred to in paragraph 7 our report of the even date to the members of J. Kumar Infraprojects Limited on the accounts of the company for the year ended 31st March 2016 on the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets;
(b) As explained to us, fixed assets have been physically verified by the management at regular Intervals, as informed to us no material discrepancies were noticed on such verification.
(c) As explained to us, title deeds of all the immovable properties are in the name of the company.
2 (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. The frequency of the verification is reasonable and no material discrepancies were noticed on such verification.
3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.
4. According to the information and explanations given to us and on the basis of our examination of the books of account, the company has not granted Loans, Investments, guarantees and security as per section 185 and 186 of Companies Act, 2013.
5. The Company has not accepted any deposits from the public covered under section 73 to 76 of the Companies Act, 2013.
6. We have reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013, and are of the opinion that the prescribed cost records have been maintained. We have, however have not made a detailed examination of the records with a view to determine whether they are accurate or complete however, Cost Audit has been prescribed for the company and cost audit has been conducted by the Cost Auditor.
7. (a) According to the information and explanation given to us and based on the records of the company examined by us, the Company is regular
in depositing with appropriate authorities undisputed statutory dues including Employee Provident Fund, Employee State Insurance Scheme, Income tax, VAT, Service Tax, Excise duty, Custom duty, Cess and other statutory dues, as applicable.
(b) According to the information and explanation given to us and based on the records of the company examined by us, there are no dues of Employee Provident Fund, Employee State Insurance Scheme, Income tax, VAT, Service Tax, Excise duty, Custom duty, etc. which have not been deposited on account of any disputes.
As informed to us the Company is having disputed statutory liability as under:
Nature of Dues |
Assessment Year |
Amount (Rs. in lakh) |
Forum where dispute is pending |
Income Tax |
2007 - 08 to 2012 - 13 |
1,833.00 |
CIT (Appeal) Order have been received on 29/03/2016 and orders are partly in favour of the company. The Order Giving Effect to CIT (A) orders is pending with Assessing Officer. |
8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions or banks as at balance sheet date.
9. According to the records of the company examined by us and the information and explanation given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and the money raised by term loan of Rs. 197.47 Lakh are applied for the purposes for which they are raised.
10. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the company, noticed or reported during the year, nor have we been informed of any such case by the management.
11. According to the records of the company examined by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the companies Act.
12. The company is not a Nidhi company hence this clause is not applicable
13. According to the records of the company examined by us and the information and explanation given to us, all transactions with the related parties are in compliance with section 177 and 188 of companies Act,2013 and the details have been disclosed in the financial statement as required by applicable accounting standards
14. According to the records of the company examined by us and according to the information and explanation provided to us, the company has made private allotment of shares during the year. The requirement of Section 42 is complied with and the net proceeds of the issue have been partially utilized towards Working Capital and balance unutilized amount of Rs.17,500.00 Lakh invested in Mutual Funds.
15. According to the records of the company examined by us and the information and explanation given to us, the company has not entered into any non-cash transactions with directors or persons connected with him.
16. According to the records of the company examined by us and the information and explanation given to us the company is not required to be registered under section 45 IA of the Reserve Bank of India Act.1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 8(f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 J. KUMAR INFRAPROJECTS LIMITED (âthe Companyâ) as of March
31, 2016 in conjunction with our audit of the 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
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 âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, 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 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, to the best of our information and according to the explanations given to us, 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 March 31, 2016, 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 Gupta Saharia and Co.
Chartered Accountants
Firm Reg. No. 103446W
Pawan Gupta
Place: Mumbai Partner
Date: 24th May, 2016 Membership No. : 071471
Mar 31, 2015
1. We have audited the accompanying financial statements of J. Kumar
Infraprojects Limited ("the Company"), which comprise the Balance Sheet
as at March 31st, 2015, and the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Management and Board of Directors of the Company are
responsible for the matter stated in Section 134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records
in accordance with the provision 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 judgement and estimates that are reasonable and
prudent; 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 financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditors'' 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 thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) ofthe Act. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation and presentation of the financial
statements, that give a true and fair view, in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the company has in place an
adequate internal financial controls systems over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness ofthe accounting estimates made by company''s
management and Board of Directors, as well as evaluating the overall
presentation ofthe financial statements.
5. 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
6. 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 ofthe state of affairs ofthe company as at
31st March 2015, its profit and its Cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements.
7. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 ofthe Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 ofthe Order.
8. As required by section 143(3) ofthe Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid Financial Statements comply with the
applicable Accounting Standards specified under section 133 of the Act,
read with rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directors
as at 31st March , 2015, taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March , 2015, from
being appointed as a director in terms of section 164(2) of the Act.
f. In our opinion and to the best of our information and according to
the explanations gives to us, we report as under 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:
i. The company does not have any pending litigation which would impact
its financial position.
ii. The Company did not have any long term contract including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in paragraph 7 our report of the even date to
the members of J. Kumar Infraprojects Limited on the accounts of the
company for the year ended 31st March 2015 on the basis of such checks
as we considered appropriate and according to the information and
explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
(b) As explained to us, fixed assets have been physically verified by
the management at regular Intervals;, as informed to us no material
discrepancies were noticed on such verification.
2 (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. The frequency
of the verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company has maintained proper records of its inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to book records.
3. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 189 of
the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for purchase of inventory and fixed assets and for sale of
goods and services. Further, on the basis of our examination of the
books and records of the Company and according to the information and
explanation given to us, no major weakness has been noticed or
reported.
5. The Company has not accepted any deposits from the public covered
under section 73 to 76 of the Companies Act, 2013.
6. We have reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014
prescribed by the Central Government under Section 148 (1) of the
Companies Act, 2013, and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however have not
made a detailed examination of the records with a view to determine
whether they are accurate or complete however, Cost Audit has been
prescribed for the company and cost audit has been conducted by the
Cost Auditor.
7. (a) According to the information and explanation given to us and
based on the records of the company examined by us, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including Employee Provident Fund, Employee State Insurance Scheme,
Income tax, VAT, Service Tax, Excise duty, Custom duty, Cess and other
statutory dues, as applicable.
(b) According to the information and explanation given to us and based
on the records of the company examined by us, there are no dues of
Employee Provident Fund, Employee State Insurance Scheme, Income tax,
Wealth tax, VAT, Service Tax, Excise duty, Custom duty which have not
been deposited on account of any disputes.
As informed to us the Company is having disputed statutory liability as
under:
Nature of Dues Assessment Year Amount Forum where dispute
(Rs. in lacs) is pending
Income Tax 2007 - 08 to 1,833.00 CIT (Appeal) and
2012 - 13 Assessing Officer
(c) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund.
8. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by the audit and
in the immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given to us, we are of the opinion that, the Company has
not defaulted in repayment of dues to financial institutions and banks.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from
banks or financial institutions.
11. According to the information and explanations given to us the
Company has applied the term loans for the purpose for which the same
was obtained.
12. Based on the audit procedures performed and the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Gupta Saharia and Co.
Chartered Accountants
Firm Registration No: 103446W
Pawan Gupta
Date: 29th May, 2015 Partner
Place: Mumbai Membership No. : 071471
Mar 31, 2014
We have audited the accompanying financial statements of J. Kumar
Infraprojects Limited. ("the Company"), which comprise the Balance
Sheet as at March 31st,2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year ended and a summary of 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 Statements notified under the Companies
Act, 1956 (the Act). Read with the General Circular 15/2013 dated 13th
September, 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
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard on Auditing generally accepted in India. Those
standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s 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 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 March 31, 2014;
b) In the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor''s Report) Order, 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:
We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpo audit;
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;
The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
On the basis of written representations received from the directors
as at March 31, 2014, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements" of Our Report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. FIXED ASSETS
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable Intervals; which in our opinion is
reasonable, having regard to size of the company and nature of its
assets, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of its fixed asset has been disposed
off during the year and therefore does not affect the going concern
assumption.
2. INVENTORIES
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. The
frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company has maintained proper records of its inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to book records.
3. LOANS AND ADVANCES
(a) According to the information and explanations given to us and on
the basis of our examination of the books of account, 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 Companies Act, 1956. Consequently, the provisions of clauses (iii)
(b), (iii) (c) and (iii) (d) of paragraph 4 of the order are not
applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (iii) (f) & (iii) (g) of paragraph 4 are not applicable to
the company.
4. INTERNAL CONTROL
In our opinion and according to the information and explanations given
to us, there is an adequate internal control procedure commensurate
with the size of the company and the nature of its business. During the
course of our audit, no major instance of continuing failure to correct
any weaknesses in the internal controls has been noticed.
5. TRANSACTION WITH PARTIES UNDER SECTION 301 OF THE COMPANIES
ACT,1956
(a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Sec. 301 of the
Companies Act,1956 have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. DEPOSITS
The Company has not accepted any deposits from the public covered under
section 58A and 58AA of the Companies Act, 1956.
7. INTERNAL AUDIT
As per information and explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. COST RECORDS
We have reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act,
1956, and are of the opinion that prima facie the prescribed cost
records have been maintained. We have, however not made a detailed
examination of the records with a view to determine whether they are
accurate or complete. However, cost audit has been prescribed for RMC
division of the company and cost audit has been conducted by the cost
auditor.
9. STATUTORY DUES
According to the records, information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Employee Provident
Fund, Employee State Insurance Scheme, Income tax, sales-tax, Service
Tax, Excise duty, Custom duty, Cess and other statutory dues applicable
to it and no undisputed amounts payable are outstanding as at March 31,
2014 for a period of more than six months from the date when they
became payable.
As informed to us the company is having disputed Statutory liabilities
as below:
Nature of Dues Assessment Year Amount (in lacs) Forum where disputes is
pending
Income Tax 2004-05 to 2010-11 569.18 Income Tax Appellate
Tribunal (Mumbai)
10. NETWORTH/CASH LOSS
The Company does not have any accumulated losses and has not incurred
cash losses during the financial year covered by the audit and in the
immediately preceding financial year.
11. REPAYMENT OF DUES
Based on our audit procedures and on the information and explanations
given to us, we are of the opinion that, the Company has not defaulted
in repayment of dues to a financial institution, bank or debenture
holders.
12. ADVANCE AGAINST SHARES
According to the information and explanations given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. CHIT FUND/NIDHI FUND
In our opinion and according to the information and explanations given
to us, the Company is not a chit fund/nidhi/mutual benefit fund/
society.
14. TRADING IN SHARES, SECURITIES, DEBENTURES AND OTHER INVESTMENTS
According to the information and explanation given to us, the Company
is not dealing or trading shares, securities, debentures and other
investments.
15. GUARANTEES
According to the information and explanations given to us, the Company
has not given any guarantees for loan taken by others from banks or
financial institution.
16. TERM LOANS
According to the information and explanations given to us the Company
has applied the term loans applied for the purpose for which the same
was obtained.
17. SOURCE AND APPLICATION OF FUNDS
Based on the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company as at 31st March, 2014,
we report that no funds raised on short-term basis have been used for
long-term investment by the Company.
18. PREFERENTIAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE
REGISTER MAINTAINED UNDER SECTION 301 OF THE COMPANIES ACT, 1956 AND
RAISING OF FUNDS THROUGH QUALIFIED INSTIUTIONAL PLACEMENT
Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. MISCELLANEOUS
a) The Company has no outstanding debentures during the period under
audit.
b) The Company has not raised any money by public issue during the
year.
c) Based on the audit procedures performed and the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
The company has only one class of shares referred to as Equity Shares
having a face value of Rs. 10/- each. Each Equity share is entitled to
one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the Shareholders in the
ensuring Annual General Meeting.
The company has not issued any bonus shares during the last five years
immediately preceeding the balance sheet date.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after disribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.
ECB Loan of USD 10 Million from Standered Chartered Bank carries
interest rate from 8.48% to 11.95% p.a. on fully hedged. The loans are
repayable in 4 years in quarterely instalments from the respective
dates of disbursement of loans after considering moratorium period.
The above loans are secured by hypothecation of Plant & Machinery and
backed by personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin
J. Gupta.
ECB Loan of USD 7.90 Million from Standered Chartered Bank carries
interest rate from 12.60% to 12.70% p.a. on fully hedged. The loans are
repayable in 5 years in quarterely instalments from the respective
dates of disbursement of loans after considering moratorium period. The
above loans are secured by hypothecation of Plant & Machinery and
backed by personal guarantee of Mr. Jagdishkumar M.Gupta and Mr. Nalin
J. Gupta.
Buyers Credit of USD 23.92 Million from Union Bank of India, Vijaya
Bank, Standared Chartered Bank, Bank of Maharashtra and Dena Bank
carries interest rate from 2.50% p.a. to 3.35% p.a. unhedged . The
loans are repayable in 3 Years in Quarterly instalment from the
respective dates of disbursement of loans after considering moratorium
period. The above loans are secured by hypothecation of Plant &
Machinery and backed by personal guarantee of Mr. Jagdishkumar M. Gupta
and Mr. Nalin J. Gupta.
Term Loan from HDFC Bank carries interest rate 10 % to 11% p.a. The
loans are repayable in 36 months in monthly instalments from the
respective dates of disbursement of loans after considering moratorium
period. The above loans are secured by hypothecation of Plant &
Machinery backed by personal guarantee of Mr. Jagdishkumar M. Gupta.
Term Loan from ICICI Bank carries interest rate from 8.45% to 10.59%
p.a. The loans are repayable in 29 months to 48 months in monthly
instalments from the respective dates of disbursement of loans. The
above loans are secured by hypothecation of Plant & Machinery and
vehicles .
Working Capital Loan (Cash credit ) from banks under consortium limit
is secured against hypothecation of stock and book debts and are backed
by personal guarantee of promoters and details of security and limits
(Refer Note 29 and 30).The interest rate from 12% to 13.50 % p.a. The
loans are repayable on demand.
Overdraft from banks is secured against Fixed Deposit receipts and are
backed by personal guarantee of promoters. The interest rate from 8% to
10.25% p.a.
Others : Buyers Credit of Euro 1,30,886 carries interest rate of 4.30%
p.a. unhedged. The loans has been repaid during the year. The above
loans are backed by personal guarantee of promoters.
For Gupta Saharia and Co.
Chartered Accountants
Firm Reg. No. 103446W
Pawan Gupta
Partner
Membership No. : 071471
Place: Mumbai
Date: 20th May, 2014
Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of J. Kumar
Infraprojects Limited, ("the Company"), which comprise the Balance
Sheet as at March 31st, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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"). 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standard on Auditing generally accepted in India. Those
standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the 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 March 31M, 2 013;
b) In the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements.
1. As required by the Companies (Auditor''s Report) Order, 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:
- We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
- 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;
- The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
- In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub section(3C) of section 211 ofthe Companies Act,
1956;
- On the basis of written representations received from the directors
as at March 31st, 2013, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31st, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 ofthe Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS* REPORT
The Annexure referred to in paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements" of Our Report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. FIXED ASSETS:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable Intervals; which in our opinion is
reasonable, having regard to size of the company and nature of its
assets, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of its fixed asset has been disposed
off during the year and therefore does not affect the going concern
assumption.
2. INVENTORIES:
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals. The
frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company has maintained proper records of its inventories. No
material discrepancy was noticed on physical verification of stocks by
the management as compared to book records.
3. LOANSANDADVANCES:
(a) According to the information and explanations given to us and on
the basis of our examination of the books of account, 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 Companies Act, 1956. Consequently, the provisions of clauses 4
(iii) (b), (iii) (c) and (iii) (d) of the order are not applicable to
the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
the provisions of clauses 4 (iii) (f) & (iii) (g) are not applicable to
the company.
4. INTERNAL CONTROL:
In our opinion and according to the information and explanations given
to us, there is an adequate internal control procedure commensurate
with the size of the company and the nature of its business. During the
course of our audit, no major instance of continuing failure to correct
any weaknesses in the internal controls has been noticed.
5. TRANSACTION WITH PARTIES UNDER SECTION 301OFTHE COMPANIES ACT, 1956
(a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As per information and explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. DEPOSITS:
The Company has not accepted any deposits from the public covered under
section 58Aand 58AA of the Companies Act, 1956.
7. INTERNALAUDIT:
As per information and explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. COST RECORDS:
We have reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act,
1956, and are of the opinion that prima facie the prescribed cost
records have been maintained.
9. SECURITYDUES:
According to the records, information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Employee Provident
Fund, Employee State Insurance Scheme, Income tax, sales-tax, Service
Tax, Excise duty, Custom duty, Cess and other statutory dues applicable
to it and no undisputed amounts payable are outstanding as at March
31s1, 2013 for a period of more than six months from the date when they
became payable
10. NET WORT/CASH LOSSES:
The Company does not have any accumulated losses and has not incurred
cash losses during the financial year covered by the audit and in the
immediately preceding financial year.
11. REPAYMENT OF DUES:
Based on our audit procedures and on the information and explanations
given to us, we are of the opinion that, the Company has not defaulted
in repayment of dues to a financial institution, bank or debenture
holders.
12. ADVANCE AGAINST SALES:
According to the information and explanations given to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. CHIT FUND/NIDHI FUND:
In our opinion and according to the information and explanations given
to us, the Company is not a chit fund / nidhi / mutual benefit fund /
society.
14. TRADING IN SHARES, SECURITIES, DEBENTURES AND OTHER INVESTMENTS:
According to the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments.
15. GUARANTEES:
According to the information and explanations given to us, the Company
has not given any guarantees for loan taken by others from a bank or
financial institution.
16. TERM LOAN:
According to the information and explanations given to us the Company
has applied the term loans applied for the purpose for which the same
was obtained.
17. SOURCE AND APPLICATION OF FUNDS:
Based on the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company as at 31" March, 2013,
we report that no funds raised on short-term basis have been used for
long-term investment by the Company.
18. PREFERENTIAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE
REGISTERED MAINTAINED UNDER SECTION 301 OF THE COMPANIES ACT, 1956 AND
RAISING OF FUNDS THROUGH QUALIFIED INSTITUTIONAL PLACEMENT.
Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. MISCELLANEOUS:
a) The Company has no outstanding debentures during the period under
audit.
b) The Company has not raised any money by public issue during the
year.
c) Based on the audit procedures performed and the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Gupta Saharia and Co.
Chartered Accountants
Firm Reg. No. 103446W
Pawan Gupta
Partner
Membership No. : 071471
Place: Mumbai
Date: 29th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of J. Kumar Infraproj
ects Limited, as at March 31", 2012 and also the Statement of Profit
and Loss for the year ended on that date annexed thereto and the cash
flow statement for the year ended on that date. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended by Companies (Auditor's Report) (Amendment) Order, 2004 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 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 to the extent applicable;
(e) On the basis of written representations received from the
Directors, as on March 3 lsl, 2012, and taken on record by the Board of
Directors we report that none of the directors are disqualified as on
March 31", 2012 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies in Notes 24 appearing thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 3 lsl, 2012;
(ii) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our
report of even date)
1. FIXED ASSETS ;
(a) The Company has maintained proper records showing full particulars,
including quantitative details and the situation of its fixed assets;
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its assets. No discrepancies were
noticed on such verification;
(c) Fixed assets disposed of during the year were not substantial.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company;
2. INVENTORIES:
(a) The inventory have been physically verified by the management at
reasonable intervals during the financial year;
(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 the Company has maintained proper records of
inventory and no material discrepancies were noticed between the
physical verification of inventory and the book records.
3. LOANS AND ADVANCES:
(a) According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
from the Companies, firms and other parties mentioned in the Register
maintained under section 301 of the Companies Act, 1956.
(b) Since the Company has neither granted nor taken any loans, hence
paragraph 4(iii)(b), (iii) (c), (iii)(d), (iii)(e), (iii)(f), (iii)(g),
of the Order are not applicable to the Company.
4. INTERNAL CONTROL:
In our opinion and according to information and explanation given to
us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for purchase of in
ventory and fixed assets and for the work done. During the course of
our audit, we have not observed any major weakness in internal control
system.
5. TRANSACTIONS WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT
1956.
(a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been
properly entered in the said register;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 exceeding the value of Rupees 5 Lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. DEPOSITS:
The Company has not accepted any deposits from the public within the
purview of Sec. 5 8 A and 5 8 A A of the Companies Act, 1956.
7. INTERNALAUDIT
In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. COST RECORDS:
The Central Government has prescribed the statutory compliance under
Section 209 (1) (d) of the Companies Act, 1956, for the carrying out
the cost accordingly compliance as ordered under notification dated
03.06.2011 for the financial year 2011-12 and the same is compiled by
the Company for Ready Mix Concrete (RMC) division.
9. STATUTORYDUES:
According to the records, information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Employee Provident
Fund, Employee State Insurance Scheme, Income tax, sales-tax, Service
Tax, Excise duty, Custom duty, Cess and other statutory dues applicable
to it and no undisputed amounts payable are outstanding as at March 31,
2012 for a period of more than six months from the date when they
became payable.
10. NET WORTH/CASH LOSSES:
The Company has no accumulated losses as at the end of the financial
year and has not incurred cash losses in the current financial year and
in the immediately preceding financial year.
11. REPAYMENT OF DUES:
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of any dues to a
financial institution or bank or debenture holders.
12. ADVANCES AGAINST SHARES:
In our opinion and according to the information and explanation given
to us, the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. CHIT FUND/ NIDHI FUND:
The Company is not a chit fund or a nidhi/ mutual benefit fund/society.
Therefore, the provision of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
14. TRADING IN SHARES, SECURITIES, DEBENTURES & OTHER INVESTMENTS:
In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15. GUARANTEES:
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 bank or financial institutions.
16. TERM LOANS:
According to the information and explanations given to us the Company
has applied the term loans applied for the purpose for which the same
was obtained;
17. SOURCE AND APPLICATION OF FUNDS:
According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we are of the
opinion that there are no funds raised on a short-term basis, which
have been used for long-term investment.
18. PREFERENTAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE REGISTER
MAINTAINED UNDER SECTON 301 OF THE COMPANIES ACT 1950 AND RAISING OF
FUNDS THROUGH QUALIFIED INSTITUTIONAL PLACEMENT:
During the current financial year, the Company has not made any
preferential allotment of shares to parties and companies covered in
the Register maintained under Section 301 of the Companies Act, 1956.
19. MISCELLANEOUS:
(a) The Company does not have any outstanding debenture during the
year.
(b) Based on the audit procedure performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For Gupta Saharia & Co.
Chartered Accountants
Firm Registration no. 103446W
Pawan Gupta
Place: Mumbai Partner
Date : 14th August, 2012 M. No.: 071471
Mar 31, 2011
1. We have audited the attached Balance Sheet of J. KUMAR
INFRAPROJECTS LIMITED as at March 31, 2011 and also the Profit and Loss
Account and 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 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 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, and on the basis of such checks of books and
records of the Company as we considered appropriate and according to
information and explanation given to us, 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 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 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;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section 3(C) of Sec. 211 of the Companies
Act, 1956.
e) On the Basis of written representations received from the directors,
as on 31st March 2011, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on March 31,
2011 from being appointed as a director in terms of clause (g) of sub -
section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies in schedule T and Notes appearing
thereon, 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:
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011.
2. In the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
3. In the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our
report of even date)
1. FIXED ASSETS :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and the situation of its fixed assets;
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its assets. No discrepancies were
noticed on such verification;
(c) Fixed assets disposed of during the year were not substantial.
According to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the Company;
2. INVENTORIES :
(a) The inventory have been physically verified by the management at
reasonable intervals during the financial year;
(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 the Company has maintained proper records of
inventory and no material discrepancies were noticed between the
physical verification of inventory and the book records.
3. LOANS AND ADVANCES :
(a) According to the information and explanations given to us, the
company has neither granted nor taken any loans, secured or unsecured
from the Companies, firms and other parties mentioned in the Register
maintained under section 301 of the Companies Act,1956.
(b) Since the Company has neither granted nor taken any loans, hence
paragraph 4(iii)(b), (iii)(c), (iii)(d), (iii)(e), (iii)(f), (iii)(g),
of the order are not applicable to the Company.
4. INTERNAL CONTROL:
In our Opinion and according to information and explanation given to
us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for purchase of
inventory and fixed assets and for the work done. During the course of
our audit, we have not observed any major weakness in internal control
system.
5. TRANSACTIONS WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT
1956.
(a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been
properly entered in the said register;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 exceeding the value of Rs. 5 Lacs have been
entered into during the financial year at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. DEPOSITS:
The Company has not accepted any deposits from the public within the
purview of Sec. 58A and 58AA of the Companies Act, 1956.
7. INTERNAL AUDIT
In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. COST RECORDS:
The Central Government has not prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956.
9. STATUTORY DUES:
According to the records, information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Employee Provident
Fund, Employee State Insurance Scheme, Income tax, sales-tax, Service
Tax, Excise duty, Custom duty, Cess and other statutory dues applicable
to it and no undisputed amounts payable are outstanding as at March 31,
2011 for a period of more than six months from the date when they
became payable.
10. NET WORTH/CASH LOSSES:
The Company has no accumulated losses as at the end of the financial
year and has not incurred cash losses in the current financial year and
in the immediately preceding financial year.
11. REPAYMENT OF DUES:
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of any dues to a
financial institution or bank or debenture holders.
12. ADVANCES AGAINST SHARES :
In our opinion and according to the information and explanation given
to us, the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. CHIT FUND/ NIDHI FUND :
The Company is not a chit fund or a nidhi/ mutual benefit fund/society.
Therefore, the provision of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
14. TRADING IN SHARES, SECURITIES, DEBENTURES & OTHER INVESTMENTS :
In our opinion, The Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15. GUARANTEES :
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 bank or financial institutions.
16. TERM LOANS :
According to the information and explanations given to us, the Company
has applied the term loans for the purpose for which the same was
obtained.
17. SOURCE AND APPLICATION OF FUNDS :
According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we are of the
opinion that there are no funds raised on a short-term basis, which
have been used for long-term investment.
18. PREFERENTAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE REGISTER
MAINTAINED UNDER SECTON 301 OF THE COMPANIES ACT 1956 AND RAISING OF
FUNDS THROUGH QUALIFIED INSTITUTIONAL PLACEMENT:
During the current financial year, the Company has not made any
preferential allotment of shares to parties and companies covered in
the Register maintained under Section 301 of the Companies Act, 1956.
19. MISCELLANEOUS :
(a) The Company does not have any outstanding debenture during the
year.
(b) Based on the audit procedure performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For Gupta Saharia & Co.
Chartered Accountants
Firm Reg. No.103446W
Pawan Gupta
Place: Mumbai (Partner)
Date: 9th August, 2011 M. No. : 071471
Mar 31, 2010
1. We have audited the attached Balance Sheet of J. KUMAR
INFRAPROJECTS LIMITED as at March 31, 2010 and also the Profit and Loss
Account and Cash Flow Statement of the company 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 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, 2003 issued
by the Central Government in terms of Section 227 (4A) 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 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 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;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section 3(C) of Section 211 of the
Companies Act, 1956.
e) On the Basis of written representations received from the directors,
as on March 31, 2010, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of sub -
section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Notes thereon 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:
1 In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
2. In the case of Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
3. In the case of Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
1. FIXED ASSETS :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and the situation of fixed assets;
(b) The fixed assets have been physically verified by the management
during the year. In our opinion, the frequency of verification of the
fixed assets by the management is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies
were noticed on such verification;
(c) Fixed assets disposed off during the year were not substantial.
According to the information and explanations given to us, we are of
the opinion that the disposal off fixed assets has not affected the
going concern status of the Company.
2. INVENTORIES :
(a) The inventory have been physically verified by the management at
reasonable intervals during the financial year;
(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 are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion the Company has maintained proper records of
inventory and no material discrepancies were noticed between the
physical verification of Inventory and the book records.
3. LOANS AND ADVANCES :
a) According to the information and explanations given to us, the
company has neither granted any loans, secured or unsecured from the
Companies, firms and other parties mentioned in the Register maintained
under section 301 of the Companies Act, 1956.
b) Since the company has neither granted nor taken any loans, the
provision of clause (iii) (b), (iii) (c), (iii) (d), (iii) (e), (iii)
(f), (iii) (g) of the Order are not applicable to the company.
4. INTERNAL CONTROL :
In our Opinion and according to information and explanation given to
us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business, for purchase of
inventory and fixed assets and for the work done. During the course of
our audit, we have not observed any major weakness in internal control
system.
5. TRANSACTIONS WITH PARTIES UNDER SECTION 301 OF THE COMPANIES ACT
1956 :
(a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been
properly entered in the said register;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5 Lacs have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time.
6. DEPOSITS :
The Company has not accepted any deposits from the public within the
purview of Section 58A and 58AA of the Companies Act, 1956.
7. INTERNAL AUDIT:
In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. COST RECORDS :
The Central Government has not prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956.
9. STATUTORY DUES :
According to the records, information and explanation provided to us,
the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Employee Provident
Fund, Employee State Insurance Scheme, Income tax, Sales-tax, Service
Tax, Excise duty, Custom duty, Cess and other statutory dues applicable
to it and no undisputed amounts payable were outstanding as at March
31, 2010 for a period of more than six months from the date when they
became payable.
10. NET WORTH/CASH LOSSES :
The Company has no accumulated losses as at the end of the financial
year and has not incurred cash losses in the current financial year and
in the immediately preceding financial year.
11. REPAYMENT OF DUES :
In our opinion and according to the information and explanation given
to us, the Company has not defaulted in repayment of any dues to any
financial institution or bank or debenture holders.
12. ADVANCES AGAINST SHARES :
In our opinion and according to the information and explanation given
to us, the Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
13. CHIT FUND/ NIDHI FUND :
The Company is not a chit fund or a nidhi/ mutual benefit fund/society.
Therefore, the provision of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
14. TRADING IN SHARES, SECURITIES, DEBENTURES & OTHER INVESTMENTS :
In our opinion, The Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. GUARANTEES :
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 bank or financial institutions.
16. TERM LOANS :
According to the information and explanations given to us the Company
has applied the term loans for the purpose for which the same was
obtained.
17. SOURCE AND APPLICATION OF FUNDS :
According to the information and explanation given to us, and on an
overall examination of the balance sheet of the company, we are of the
opinion that there are no funds raised on a short-term basis, which
have been used for long-term investment.
18. PREFERENTAL ALLOTMENT OF SHARES TO PARTIES COVERED IN THE REGISTER
MAINTAINED UNDER SECTON 301 OF THE COMPANIES ACT 1950 AND RAISING OF
FUNDS THROUGH QUALIFIED INSTITUTIONAL PLACEMENT:
During the year, The Company has issued and allotted 40,00,000
Convertible Warrants to the individuals and/or corporate belonging and/
or not belonging to the Promoter/Promoter Group of the Company covered
in the Register maintained under Section 301 of the Companies Act 1956
convertible into 40,00,000 Equity Shares at a price of Rs.60/-per
equity shares (including premium of Rs.50/-per equity share) on
preferential basis on May 20, 2009. The said warrants has been
converted into equity shares on Augustl9, 2009. Consequently, there is
an increase in the Paid up Share Capital from Rs 2,072.44 Lacs to Rs
2,472.44 Lacs.
On December 15, 2009, the Company has issued 30,76,785 Equity shares of
Rs 10/- each at a price of Rs 180.25 (Rs 10/- face value + Rs 170.25
Premium) per Equity Share, aggregating Rs 55.45 Cores through QIP
(Qualified Institutional Placements) as per relevant guidelines of
Chapter VIII of the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009. Consequently,
there is an increase in the Paid up Share Capital from Rs. 2,472.44
Lacs to Rs. 2,780.12 Lacs.
19. MISCELLANEOUS :
(a) The Company does not have any outstanding debenture during the
year.
(b) Based on the audit procedure performed and information and
explanations given to us by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For Gupta Saharia &Co.
Chartered Accountants
Firm Reg.No.:103446W
Pawan Gupta
Place:Mumbai (Partner)
Date:May 29,2010 Membership No.:071471