Mar 31, 2023
To the Members of Kalpataru Power Transmission Limited
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the standalone financial statements of Kalpataru Power Transmission Limited (the âCompany"), its joint operation which comprise the standalone balance sheet as at 31 March 2023, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including 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, and based on the consideration of reports of the other auditor on financial statements of such joint operation as was audited by the other auditor, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âAct") 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 31 March 2023, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone
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 standalone financial statements under the provisions of the Act 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 obtained by us along with the consideration of report of the other auditor referred to in paragraph (a) of the âOther Matters" section below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Emphasis of Matter(s)
a. We draw attention to Note 52 of the standalone financial statements which describes that the Scheme of Amalgamation (the Scheme) between the Company and its subsidiary JMC Projects (India) Limited has been approved by the National Company Law Tribunal (âNCLT'') vide its order dated 21 December 2022 with an appointed date of 01 April 2022. Accordingly, the corresponding amounts for the year ended 31 March 2022 have been restated by the Company after recognising the effect of the Scheme as per the applicable accounting standard.
Our opinion is not modified in respect of this matter.
Key Audit Matter(s)
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Recognition of contract revenue and margin See Note 22 to standalone financial statements |
|
The key audit matter |
How the matter was addressed in our audit |
The Company enters into Engineering Procurement and Construction (EPC) contracts, which are complex in nature and span over a number of reporting periods. Ind AS 115, Revenue from Contracts with Customers, requires an entity to select a single measurement method for the relevant performance obligation |
In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Selected a sample of contracts to test, using a risk based criteria which included individual contracts with: ii. Significant revenue recognised during the year; |
The key audit matter |
How the matter was addressed in our audit |
which depicts the entity''s performance in transferring goods or services. In case of onerous contract, present obligations are recognized and measured as provisions. The Company is recognizing contract revenue and margin for these contracts based on input method, in accordance with the requirement of the standard. It relies on management''s estimates of the final outcome of each contract, and involves management judgement, particularly in forecasting the cost to complete a contract, and claims. We identified contract accounting as a key audit matter because the estimation of total revenue and total cost to complete the contract is inherently subjective, complex and require significant management judgement. The same may get subsequently changed due to change in prevailing circumstances, assumptions, contract variations etc., and could result in significant variance in the revenue and profit or loss from contract for the reporting period. |
iii. Significant unbilled work in progress (WIP) balances held at the year-end; or iv. Low profit margins. ⢠Obtained an understanding of management''s process for analyzing long term contracts, the risk associated with the contract and any key judgements. ⢠Evaluated the design and implementation of key internal controls over the contract revenue and cost estimation process through the combination of procedures involving inquiry, observations, reperformance and inspection of evidence. ⢠Verified underlying documents such as contract, and its amendments, key contract terms and milestones, etc. for verifying the estimation of contract revenue and costs and /or any change in such estimation. ⢠Evaluated retrospective results for contracts completed during the current year. Compared the final outcome of the contracts with previous estimates made for these contracts to assess the reliability of management forecasting process. ⢠Considered the adequacy of the disclosures in note 22 to the standalone financial statements. |
Recoverability of carrying value of loans and Investments See Note 6 and 8 to standalone financial statements |
|
The key audit matter |
How the matter was addressed in our audit |
The assessment of recoverable value of the Company''s investments in and loans receivable from certain subsidiaries involves significant judgement. These include assumptions such as discount rates, current work in hand, future contract wins/ future business plan, recoverability of its receivables and growth rate. We focused on this area as a key audit matter due to judgement involved in forecasting future cash flows and the selection of assumptions. |
In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Evaluated the design and implementation and testing operating effectiveness of controls over the management''s process of impairment assessment. ⢠Evaluated net worth and past performance of the companies to whom loans given or investment made. ⢠Challenged the significant assumptions and judgements used in impairment analysis, such as forecast revenue, margins, terminal growth and discount rates with the assistance of our valuations specialist; ⢠Compared the previous forecast to actual results to assess the Company''s ability to forecast accuracy. ⢠Performed sensitivity analysis on key assumptions including discount rates and estimated future growth, as applicable. ⢠Evaluated the adequacy of presentation and disclosures made in the financial statements. |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and auditor''s reports thereon. The Company''s annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Company''s annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the relevant laws and regulations.
MANAGEMENT''S AND BOARD OF DIRECTORS'' RESPONSIBILITIES FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/ loss and other comprehensive income, changes in equity and cash flows 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. The respective Management and Board of Directors of the companies are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of each company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the respective Management and Board of Directors are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors are responsible for overseeing the financial reporting process of each company.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal 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 with reference to financial statements 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 the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of
accounting in preparation of standalone 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 auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Obtain sufficient appropriate audit evidence regarding the financial statements of joint operation of the Company to express an opinion on the standalone financial statements. For the joint operation included in the standalone financial statements, which have been audited by other auditor, such other auditor remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled âOther Matters" in this audit report.
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 standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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.
a. We did not audit the financial statements of one joint operation included in the standalone financial statements of the Company whose financial statements reflects total assets (before consolidation adjustments) of Rs. 72.80 crores as at 31 March 2023, total revenue (before consolidation adjustments) of Rs. 70.64 crores and net cash outflows (before consolidation adjustments) amounting to Rs. 0.99 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements of this joint operation has been audited by the other auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of joint operation, is based solely on the reports of such other auditor.
Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure B".
B. 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:
a. The Company has disclosed the impact of pending litigations as at 31 March 2023 on its financial position in its standalone financial statements - Refer Note 29 to the standalone financial statements.
b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 32 and 43 to the standalone financial statements.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d (i) The management has represented to us that, to the best of their knowledge and belief, other than as disclosed in the Note 49(a) to the standalone financial statements, no funds 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(s) or entity(ies), including foreign entities (âIntermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented to us that, to the best of their knowledge and belief, as disclosed in the Note 49(b) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The final dividend paid by the Company during the year, in respect of the same declared for the previous year, is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 61 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
f. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
C. With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Company is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
For B S R & Co. LLP
Chartered Accountants Firm''s Registration No.:101248W/W-100022
Vikas R Kasat
Partner
Place: Mumbai Membership No.: 105317
Date: 08 May 2023 ICAI UDIN:23105317BGVTNO1429
Mar 31, 2022
To the Members of Kalpataru Power Transmission Limited Basis for Opinion
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTSopinion
We have audited the standalone financial statements of Kalpataru Power Transmission Limited (the "Company") and its joint operation, which comprise the standalone balance sheet as at 31 March, 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information in which are included the financial statements for the year ended on that date audited by the other auditor of the Companyâs joint operation.
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the other auditor on financial statements of such joint operation as were audited by the other auditor, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("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 31 March, 2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the standalone 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 standalone financial statements under the provisions of the Act 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 obtained by us along with the consideration of reports of the other auditor referred to in paragraph of the "Other Matters" section below, is sufficient and appropriate to provide a basis for our opinion on the standalone 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 standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
description of Key Audit Matter |
||
sr. No. |
The key audit matter |
How the matter was addressed in our audit |
1 |
Recognition of contract revenue and margin: The Company enters into Engineering Procurement and Construction (EPC) contracts, which are complex in nature and span over a number of reporting periods. Ind AS 115, Revenue from Contracts with Customers, requires an entity to select a single measurement method for the relevant performance obligation which depicts the entityâs performance in transferring goods or services. In case of onerous contract, present obligations are recognised and measured as provisions. The Company is recognising contract revenue and margin for these contracts based on input method, in accordance with the requirement of the standard. It relies on managementâs estimates of the final outcome of each contract, and involves management judgement, particularly in forecasting the cost to complete a contract, valuing contract variations, claims and liquidated damages. |
In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠We selected a sample of contracts to test, using a risk based criteria which included individual contracts with: - Significant revenue recognised during the year; - Significant unbilled work in progress (WIP) balances held at the year-end; or - Low profit margins. ⢠Obtained an understanding of managementâs process for analysing long term contracts, the risk associated with the contract and any key judgements. ⢠Evaluating the design and implementation of key internal controls over the contract revenue and cost estimation process through the combination of procedures involving inquiry, observations, re-performance and inspection of evidence. |
We identified contract accounting as a key audit matter because the estimation of total revenue and total cost to complete the contract is inherently subjective, complex and require significant management judgement. The same may get subsequently changed due to change in prevailing circumstances, assumptions, contract variations etc., and could result in significant variance in the revenue and profit or loss from contract for the reporting period. Refer note 22 to the standalone Financial Statements. |
⢠Verified underlying documents such as contract, and its amendments, key contract terms and milestones, etc. for verifying the estimation of contract revenue and costs and / or any change in such estimation. ⢠Evaluating retrospective results for contracts completed during the current year. Comparing the final outcome of the contracts with previous estimates made for these contracts to assess the reliability of management forecasting process. ⢠Considered the adequacy of the disclosures in note 22 to the standalone financial statements. |
|
2 |
Recoverability of carrying value of loans and investment The assessment of recoverable value of the Companyâs investment in and loans receivable from certain subsidiaries involves significant judgement. These include assumptions such as discount rates, current work in hand, future contract wins / future business plan, recoverability of its receivables and growth rate. We focused on this area as a key audit matter due to judgement involved in forecasting future cash flows and the selection of assumptions. Refer note 6 and 8 to the standalone Financial Statements. |
In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Evaluated the design and implementation and testing operating effectiveness of controls over the managementâs process impairment assessment. ⢠Evaluated net worth and past performance of the Company to whom loans given or investment made. ⢠Challenged the significant assumptions andjudgements used in impairment analysis, such as forecast revenue, margins, terminal growth and discount rates with the assistance of our valuations specialist. ⢠Comparing the previous forecast to actual results to assess the Companyâs ability to forecast accuracy. ⢠Performing sensitivity analysis on Key assumptions including discount rates and estimated future growth, as applicable. ⢠Evaluated accuracy of disclosures in the standalone financial statements. |
information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Companyâs Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained 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.
Management''s and Board of Directors'' Responsibilities for the standalone Financial statements
The Companyâs Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit / loss and other comprehensive income, changes in equity and cash flows 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. The respective Management and Board of Directors of the Company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of each entity for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the respective Management and Board of Directors are responsible for assessing the ability of each entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors are also responsible for overseeing the financial reporting process of each entity.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal 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 with reference to financial
statements 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 the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial statements of joint operation of the Company to express an opinion on the standalone financial statements. For the joint operation included in the standalone financial statements, which have been audited by other auditor, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph of the section titled "Other Matters" in this audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
We did not audit the financial statements of one joint operation included in the standalone financial statements of the Company whose financial statements reflect total assets (before consolidation adjustments) of '' 99.88 Crores as at 31 March, 2022, total revenue (before consolidation adjustments) of '' 88.18 Crores and net cash outflows (before consolidation adjustments) amounting to '' 4.58 Crores for the year ended on that date, as considered in the standalone financial statements. The financial statements of these joint operation has been audited by the other auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of joint operation, is based solely on the reports of such other auditor.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) 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 standalone balance sheet, the standalone
statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(B) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditorâs) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations as at 31 March, 2022 on its financial position in its standalone financial statements - Refer Note 29 to the standalone financial statements.
b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 32 and 43 to the standalone financial statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d) (i) The management has represented
that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds 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 persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d) (i) and (d) (ii) contain any material mis-statement.
e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.
(C) With respect to the matter to be included in the Auditorâs Report under Section 197(16) of the Act: In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
Chartered Accountants Firmâs Registration No: 101248W / W-100022
Partner
Mumbai Membership No: 105317
14 May, 2022 UDIN: 22105317AIZLPZ9669
Mar 31, 2019
INDEPENDENT AUDITORâS REPORT
To The Members of
Kalpataru Power Transmission Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Kalpataru Power Transmission Limited (the "Companyâ), which comprise the standalone balance sheet as at March,31, 2019, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information, in which are incorporated the financial statement of one joint operation (hereinafter referred to as ''standalone financial statements).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("Actâ) 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, 2019, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor''s Responsibilities for the Audit of the Standalone 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 standalone financial statements under the provisions of the Act 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 and evidence obtained by the other auditor in terms of their reports referred to in the ''Other Matters'' paragraph below is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Description of Key Audit Matter
Sr. No. |
The key audit matter |
How the matter was addressed in our audit |
||
1 |
Recognition of contract revenue, margin and related receivables: The Company enters into Engineering Procurement and Construction (EPC) contracts, which are complex in nature and span over a number of reporting periods. The accounting standard requires an entity to select a single measurement method for the relevant performance obligation that depicts the entity''s performance in transferring goods or services or if a contract is onerous, present obligations are recognized and measured as provisions. |
Our procedures included the following: - We selected a sample of contracts to test, using a risk based criteria which included individual contracts with: - significant revenue recognized during the year; - significant unbilled work in progress (WIP) balances held at the year end; or - low profit margins. - Obtained an understanding of management''s process for reviewing long term contracts, the risk associated with the contract and any key judgments. |
Sr. No. |
The key audit matter |
How the matter was addressed in our audit |
|
The Company is recognizing contract revenue and |
- |
Evaluating the design and implementation of key |
|
margin for these contracts based on input method, |
internal controls over the contract revenue and |
||
in accordance with the requirement of the standard |
cost estimation process through the combination |
||
which relies on management''s estimates of the final |
of procedures involving inquiry and observations, |
||
outcome of each contract, and involves the exercise |
re-performance and inspection of evidence in |
||
of significant management judgment, particularly in |
respect of operations of these controls. |
||
forecasting the cost to complete a contract, in valuing contract variations, claims and liquidated damages. |
- |
Verified underlying documents such as original contract, and its amendments, if any, key contract |
|
We identified contract accounting as a key audit matter |
terms and milestones, etc. for verifying the |
||
because the estimation, of the total revenue and total |
estimation of contract revenue and costs and /or |
||
cost to complete the contract, prepared based on |
any change in such estimation. |
||
the prevailing circumstances, is inherently subjective, complex and require significant management judgment and forecast of contract revenue and/or contract cost may get subsequently changed due to change in prevailing circumstances, assumptions, contract variations or any other factor, and could result in material variance in the revenue and profit or loss from contract for the reporting period. Refer note 23 to the standalone Financial Statements. |
- |
Evaluating the outturn of previous estimates and agreeing the actual cost after the year end to the forecasted costs for the period. Evaluating the status of each of the material trade receivables past due as at year end, the Company''s on-going business relationship with customer and past payment history of the customers through discussion with management. |
|
2 |
Recoverability of carrying value of investment |
Our procedures included the following: |
|
The assessment of recoverable amount of the |
- |
Evaluated net worth and past performance of |
|
Company''s investment in and loans receivable from |
the Company to whom loans given or investment |
||
certain subsidiaries involves significant judgment |
made. |
||
in respect of assumptions such as discount rates, current work in hand, future contract wins/ future business plan and the recoverability of certain receivables as well as economic assumption such as growth rate. We focused on this area as a key audit matter due to judgment involved in forecasting future cash flows and the selection of assumptions. Refer note 6 and 8 to the standalone Financial Statements. |
Compared the carrying amount of the investment with the expected value of the business based on the discounted cash flow analysis. Assessed the key assumptions for independent |
||
- |
valuation obtained by management applied by comparing them with historical performance to assess the Company''s ability to forecast accurately. Performing sensitivity analysis on Key assumptions including discount rates and estimated future growth. Assessed the appropriateness of the relevant disclosures in the financial statements. |
Information Other than the Standalone Financial Statements and Auditorsâ Report Thereon
The Company''s management and Board of Directors are responsible for the other information. The other information comprises 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 standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on work done / audit report of other auditor, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows 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 provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal 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 with reference to financial statements 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 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 auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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
(a) We did not audit the financial statements of one joint operation included in the standalone financial statements of the Company whose financial statements reflect total assets of RS,4,808 lakhs as at March,31, 2019 and total revenue of RS,1,419 lakhs for the year ended on that date, as considered in the standalone annual financial statements. The said annual financial statements and other financial information has been audited by the other auditor whose report has been furnished to us, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of joint operation, is based solely on the report of such other auditor.
(b) The said joint operation is located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in the country in which it is incorporated and which has been audited by other auditor under generally accepted auditing standards applicable in that country. The Company''s Management has converted the financial statements of such joint operation located outside India from accounting principles generally accepted in the country in which it is incorporated to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company''s Management. Our opinion in so far as it relates to the balances and affairs of such joint operation located outside India is based on the report of other auditor and the conversion adjustments prepared by the Management of the Company and audited by us.
(c) The financial information of the Company for the year ended March,31, 2018 included in these financial statements had been audited by another firm of Chartered Accountants who had expressed an unmodified opinion thereon as per their reports dated 25 May 2018 which has been furnished to us by the Management and has been relied upon by us for the purpose of our audit.
Our opinion on the standalone financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the report of the other auditor.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2016 (the "Orderâ) issued by the Central Government in terms of section 143 (11) of the Act, we give in the "Annexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) 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 standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March,31, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March,31, 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure Bâ.
(B) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March,31, 2019 on its financial position in its standalone financial statements - Refer Note 30 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, on long-term contracts including derivative contracts- Refer Note 33 to the standalone financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosure in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended March,31, 2019.
(C) With respect to the matter to be included in the Auditors'' Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
With reference to the Annexure A referred to in the Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended March,31, 2019, we report the following:
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets and by which all the fixed assets are verified in phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the policy, the Company has physically verified its fixed assets during the year and we are informed that no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties as disclosed in Note 5(i) to the standalone financial statements, are held in the name of the Company.
Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders. In respect of immovable properties been taken on lease and disclosed as property, plant and equipment in the standalone financial statements, the lease arrangements are in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3 (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
(iv) According to the information and explanations given to us, the Company has not given any loans, or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, compliance under Section 185 of the Act is not applicable to the Company. In our opinion, and according to the information and explanations given to us, the Company has made investment referred in Section 186(1) of the Act and have complied with the provisions of Section 186 of the Act, to the extent applicable.
(v) According to the information and explanations given to us, the Company has not accepted deposits during the year as per the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, paragrapRs,3 (v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given
to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, employees'' state insurance, income-tax, duty of customs, goods and service tax, cess and other material statutory dues have been regularly deposited during the year with the appropriate authorities.
According to the information and explanations given to us, no material undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, duty of customs, goods and service tax, cess and other material statutory dues were in arrears as at March,31, 2019 for a period of more than six months from the date they became payable.
Also refer note 30.1 to the standalone financial statements.
b) According to the information and explanations given to us, there are no dues of service tax, duty of custom, income tax, value added tax, goods and service tax and other material statutory dues have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
Amount paid |
|||||
Name of Statute |
Nature of Dues |
Amount J in |
Period to which it |
Forum where dispute is pending |
under protest / refund withheld |
lakhs)* |
relates |
by department (J in lakhs) |
|||
Sales Tax and |
Sales Tax |
||||
Value Added Tax |
and Value |
||||
Laws |
Added Tax |
3.34 |
2007-08 |
Additional Commissioner (Appeals) |
- |
2007-08 & |
|||||
2,266.39 |
2010-11 |
Deputy Commissioner (Appeals) |
171.73 |
||
2009-10 to |
|||||
346.50 |
2013-14 |
High Court |
175.10 |
||
Various years |
|||||
from 2006-07 |
|||||
970.10 |
to 2013-14 |
Joint Commissioner (Appeals) |
290.00 |
||
Various years |
|||||
from 2005-06 |
|||||
394.09 |
to 2013-14 |
Tribunal |
227.04 |
||
The Customs |
Various years |
||||
Act, 1962 |
Customs |
from 2010-11 |
|||
Duty |
36.72 |
to 2014-15 |
Tribunal |
1.10 |
|
The Finance Act, |
Various years |
||||
1994 |
from 2003-04 |
||||
Service Tax |
3,245.54 to 2014-15 |
Tribunal |
477.03 |
||
The Madhya |
|||||
Pradesh |
|||||
Sthaniya Kshetra |
|||||
Me Mal Ke |
|||||
Pravesh Par Kar |
|||||
Adhiniyam, 1976 |
Entry Tax |
17.50 |
2011-12 |
Commercial Tax Appellate Board |
110.00 |
The Odisha |
|||||
Entry Tax Act, |
2009-10 to |
||||
1999 |
Entry Tax |
17.97 |
2013-14 |
Joint Commissioner (Appeals) |
- |
Income Tax Act, |
Income |
||||
1961 |
Tax |
182.59 |
2017-18 |
Commissioner Income Tax (Appeals) |
45.65 |
Algerian Tax |
I.B.S., I.R.G., |
||||
Laws |
T.A.P and |
Ministry of Finance, General |
|||
T.V. A. |
2,311.05 |
2008 to 2016 |
Directorate of Taxes, Algeria |
920.95 |
|
Senegal Tax |
Tax on |
General Directorate of Taxes and |
|||
Laws |
income |
8,472.24 2016 |
Domains, Dakar, Senegal |
- |
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to the banks, financial institutions and dues to debenture holders. The Company did not have any outstanding loans and borrowings to Government.
(ix) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans taken by the Company during the year have been applied for the purpose for which they are raised.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) According to the information and explanations given to us, the Company is not a Nidhi company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragrapRs,3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragrapRs,3 (xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, paragrapRs,3 (xv) of the Order is not applicable to the Company.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragrapRs,3 (xvi) of the Order is not applicable to the Company.
Report on the internal financial controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragrapRs,1(A) (f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Opinion
We have audited the internal financial controls with reference to standalone financial statements of Kalpataru Power Transmission Limited (the "Companyâ) as of March,31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at March,31, 2019, based on the internal financial controls with reference to financial statements 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 (the "Guidance Noteâ).
Managementâs Responsibility for Internal Financial Controls
The Company''s management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as the "Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 with reference to financial statements were established and maintained and whether 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, 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 standalone 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 with reference to financial statements.
Meaning of Internal Financial controls with Reference to Financial Statements
A company''s internal financial controls with reference to financial statements 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 controls with reference to financial statements include 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 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 with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No : 101248W/W-100022
Vikas R Kasat
Mumbai Partner
May 9, 2019 Membership No: 105317
Mar 31, 2017
TO
THE MEMBERS OF
KALPATARU POWER TRANSMISSION LIMITED Report on the Standalone ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of KALPATARU POWER TRANSMISSION LIMITED (âthe Company), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
1. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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 âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 KALPATARU POWER TRANSMISSION LIMITED (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on, the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial Controls System over financial Reporting.
Meaning of internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
inherent Limitations of internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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, 2017, based on the internal control over financial reporting criteria established by 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 Accountant of India.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the balance sheet date.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on March 31, 2017 on account of disputes are given below:
Sr No |
Name of the statute |
Nature of Dues |
Assessment/ Financial Year |
Amount* (Rs, in Lakhs) |
Forum where dispute is pending |
Amount paid under protest/ refund withheld by department (Rs, in Lakhs) |
1 |
The Finance Act, 1994 |
Service Tax |
2003-04, 2007-08 to 2011-12 & 2014-15 |
3245.71 |
Customs, Excise and Service Tax, Appellate Tribunal |
445.66 |
2 |
The Customs Act, 1962 |
Customs Duty |
2010-11 & 2011-12 |
23.18 |
Customs, Excise and Service Tax Appellate Tribunal, Chennai |
|
3 |
The Customs Act, 1962 |
Customs Duty |
2012-13 & 2014-15 |
3.59 |
Commissioner (Appeal) |
44.20 |
4 |
The Customs Act, 1962 |
Customs Duty |
2014-15 |
14.64 |
CESTAT-Mumbai |
- |
5 |
The Madhya Pradesh VAT Act, 2002 |
VAT |
2011-12 |
17.50 |
Madhya Pradesh Commercial Tax Appellate Board |
110.00 |
6 |
The Madhya Pradesh VAT Act, 2002 |
VAT |
2007-08 |
2.88 |
Assistant Commissioner-Satna |
- |
7 |
The Bihar VAT Act, 2005 |
VAT |
2016-17 |
3.29 |
Commissioner of Commercial Taxes Appellate Board |
- |
8 |
The Gujarat VAT Act, 2003 |
VAT |
2005-06 & 2010-11 |
255.74 |
Gujarat Value Added Tax Tribunal |
78.00 |
9 |
The Gujarat VAT Act, 2003 |
VAT |
2012-13 |
99.52 |
Joint Commissioner of Commercial Tax Appeal |
17.00 |
10 |
Maharashtra VAT Act, 2002 |
VAT |
2007-08 & 2010-11 |
2,266.39 |
Deputy Commissioner of Appeal |
171.73 |
11 |
Uttar Pradesh VAT Act, 2008 |
VAT |
2005-06 to 2007-08 & 2013-14 |
416.72 |
Additional Commissioner -Appeal |
1.14 |
12 |
West Bengal VAT Act, 2003 |
VAT |
2013-14 |
225.61 |
Calcutta High Court |
45.00 |
13 |
West Bengal VAT Act, 2003 |
VAT |
2004-05 |
12.34 |
Appellate Tribunal West Bengal and Revision Board of Calcutta |
12.00 |
14 |
Haryana VAT Act, 2003 |
VAT |
2012-13 & 2013-14 |
793.53 |
Punjab and Haryana High Court |
139.00 |
15 |
Haryana VAT Act, 2003 |
VAT |
2011-12 |
58.74 |
Joint Commissioner of Appeal |
128.00 |
16 |
Haryana VAT Act, 2003 |
VAT |
2003-04,200405,2008-09 & 2009-10 |
76.13 |
Haryana VAT Tribunal |
60.37 |
17 |
Orissa VAT Act, 2004 |
VAT |
2009-10 to 2013-14 |
35.12 |
Joint Commissioner of Appeal |
168.00 |
18 |
Global Income Tax Act, Algeria |
Income Tax and Turnover Tax |
2006 to 2009 |
2,863.14 |
Central Commission of Appeal, Algeria |
*net of amount paid under protest/net of refund withheld by department
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Standalone Ind AS financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firmâs Registration No.117365W)
Sunil S Kothari
Place: Mumbai (Partner)
Date: May 19, 2017 (Membership No.208238)
Mar 31, 2015
We have audited the accompanying standalone financial statements of
KALPATARU POWER TRANSMISSION LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these 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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 28 to the
financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditor''s Report on the Standalone Financial Statements
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date on the standalone
financial statements for the year ended 31st March, 2015)
1. In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets;
(b) Some of the fixed assets were physically verified during the year
by the Management in accordance with a programme of verification, which
in our opinion provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification. ,
2. In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. According to the information and explanations given to us, the
Company has granted unsecured loans to companies covered in the
Register maintained under Section 189 of the Companies Act, 2013. In
respect of such loans
(a) The receipt of principle amounts and interest have been regular as
per stipulation. ,
(b) There is no overdue amount in excess of Rs. 1 Lakh remaining
outstanding as at the year end.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit we have not observed any
major weaknesses in such internal control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits in terms of the provisions of
Section 73 and 76 of the Act or any other relevant provisions of the
Act.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Records and Audit) Rules, 2014, as
amended and prescribed by the Central Government under sub-section (1)
of Section 148 of the Companies Act, 2013, and are of the opinion that,
prima facie, the prescribed cost records have been made and maintained.
We have, however, not made a detailed examination of the cost records
with a view to determine whether they are accurate or complete.
7. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues applicable to it.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax and Cess which have not been
deposited as on March 31, 2015 on account of disputes are given below:
Sr. Name of the statute Nature of Year
No dues
1 The Finance Act, 1994 Service Tax 2006-07
2 The Finance Act, 1994 Service Tax 2007-08 to
2011-12
3 The Finance Act, 1994 Service Tax 2003-04
4 The Central Exise Act,1994 Excise 2007-08 to
2011-12
5 The West Bengal VAT
Act, 2003 VAT 2004-05
6 The Karnataka VAT
Act, 2003 VAT 2009-10
7 The Madhya Pradesh
VAT Act, VAT 2007-08 2002
8 The Gujarat VAT Act, 2003 VAT 2005-06
9 Maharashtra VAT Act, 2002 VAT 2007-08
10 Maharashtra VAT Act, 2002 VAT 2008-09
11 The Gujarat VAT Act, 2003 VAT 2010-11
12 The Bihar VAT Act, 2005 VAT 2004-05 &
2005-06
13 The Customs Act, 1962 Customs 2010-11 &
Duty 2011-12
14 The Customs Act, 1962 Customs 2012-13
Duty
Name of the Statute Amount Forum where
dispute is
pending
(Rs,In Lacs)
The Finance Act,1994 1.01 Commissioner
(Appeal)
The Finance Act, 1994 1,837.00 Customs, Excise
and Service Tax
Appellate
Tribunal
The Finance Act, 1994 1,757.70 Customs, Excise
and Service Tax
Appellate
Tribunal
The Central Excise Act, 1944 6.39 Commissioner
(Appeal)
The West Bengal VAT Act,2003 12.33 West Bengal
Appellate and
Provisional Board
The Karnataka VAT Act, 2003 7.80 Appellate
Tribunal -
Karnataka
The Madhya pradesh VAT Act2002 2.88 Assistant
Commissioner -
Satna
The Gujarat VAT Act, 2003 138.35 Gujarat Sales
Tax Tribunal
Maharashtra VAT Act, 2002 47.74 Appellate
Tribunal -
Maharashtra
Maharashtra VAT Act, 2002 63.37 Appellate
Tribunal -
Maharashtra
The Gujarat VAT Act, 2003 Joint Commissioner
of Commercial
117.38 Tax
The Bihar VAT Act, 2005 17.27 The Deputy
Commissioner of
Commercial Taxes
Kisanganj- Bihar
The Customs Act, 1962 23.18 CESTAT, Chennai
The Customs Act, 1962 47.79 Commissioner
(Appeal),
Ahmadabad
For the above purpose, only statutory dues payable in India have been
considered.
(d) The Company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and rules
made there under within time.
8. The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
11. In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
12. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells,
Chartered Accountants
(Firm''s Registration No. 117365W)
(Gaurav J. Shah)
Place: Mumbai Partner
Date: 30th May, 2015 (Membership No. 35701)
Mar 31, 2014
We have audited the accompanying financial statements of KALPATARU
POWER TRANSMISSION LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March , 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continues to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of General Circular
15/2003 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014,
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
affairs).
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
Annexure to the Auditors'' Report
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1. Having regard to the nature of the Company''s business / activities
/ results during the year, clauses (vi), (xii), (xiii), (xiv), (xviii),
(xix), (xx) of paragraph 4 of the Order are not applicable to the
company.
2. In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets,
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of veri- fication
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Com- pany
and such disposal has, in our opinion, not affected the going concern
status of the Company.
3. In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
4. In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
(a) The Company has granted loans aggregating to Rs. 1,989 Lacs to two
parties during the year. At the year-end, the outstanding balances of
such loans granted aggregated to Rs. 18,657 Lacs for two parties and
maximum amount involved during the year was Rs. 18,657 Lacs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
Company.
(c) The receipts of principal amounts and interest have been regular/as
per stipulations.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of audit, we have not observed any major
weakness in such internal controls system.
6. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction, excluding loans reported under
paragraph (iii) above, is in excess of Rs. 5 lakhs in respect of any
party, the transactions have been made at prices which are prima facie
reasonable having regard to the prevailing market prices at the
relevant time.
7. In our opinion, the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly 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 cost records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at March 31, 2014 for a period of more than six months from the date
they became payable.
(c) Details of dues of Sales Tax, Service Tax and Custom Duty which
have not been deposited as on March 31,2014 on account of disputes are
given below:
Sr. No Name of the statute Nature of dues Year
1. Finance Act,1994 Service Tax 2003-04
& 2004-05
Penalty for Input 2006-07
service tax
2 Customs Act, 1962 Custom Duty 2012-13
3 West Bengal VAT Act, VAT 2004-05
2003
4 Haryana VAT Act, VAT 2007-08
2003
5 Gujarat VAT Act, VAT 2005-06
2005
6 Karnataka VAT Act, VAT 2009-10
2003
Sr No Name Of the Statute Amount Forum where dispute is pending
(Rs. in Lacs)
1 Finance act 1994 1,757.69 Customs, Excise and Service
Tax Appellate Tribunal
1.01 Commissioner (Appeals)
2 Custom act,1962 47.79 Department of Revenue
Intelligence
3 West bengal VAT Act 2003 12.33 West Bengal Appellate
and Revisional Board
4 Haryana VAT Act 2003 1.87 Joint Excise & Taxation
Commissioner(Appeals)
5 Gujarat VAT Act 2005 138.35 Gujarat Sales Tax Tribunal
6 Karnataka VAT Act 2003 13.30 Karnataka Appellate Tribunal
There were no dues of Income-tax, Wealth Tax, Excise Duty and Cess
which have not been deposited as on March 31, 2014 on account of
disputes.
10. There are no accumulated losses of the Company as at March 31,
2014. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debentures holders.
12. The Company has not given any guarantee for loan taken by others
from banks or financial institution. However, the Company has given
undertaking to lender of subsidiary company. The terms and conditions
of such undertaking are not prima facie prejudicial to the interest of
the Company.
13. According to the information and explanations given to us, in our
opinion, the term loans raised during the year have been applied for
the purposes for which they were raised.
14 In our opinion and according to the information and explanations
given to us and on overall examination of the balance sheet of the
Company, we report that the funds raised on short-term basis have,
prima facie, not been used during the year for long term investment.
15. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the
Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No 117365W)
Gaurav J. Shah
Partner
(Membership No. 35701)
Mumbai, May 29, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of KALPATARU
POWER TRANSMISSION LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March , 2013, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 ("the Act") and in accordance with
the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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 the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order,
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211 (3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of Section 274(1) (g) of
the Act.
(Referred to in paragraph 1 under ''Report on Other Legal and
Regulatory Requirements'' section of our report of even date)
1. In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets;
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company
2. In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
(a) The Company has given loans to two companies aggregating to Rs.
332.64 lacs during the year. In respect of said loans the maximum
amount involved during the year is Rs. 16,828.25 lacs and the year end
balance is Rs. 16,696.51 lacs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
Company,
(c) The receipts of principal amounts and interest have been regular/as
per stipulations,
(d) In respect of the said loans and interest thereon, there are no
overdue amounts,
(e) The Company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable,
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for the
sale of goods and services. During the course of audit, no major
weakness has been noticed in the internal controls in respect of these
areas,
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered,
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public within the meaning
of provisions of Section 58A and 58AA or any relevant provisions of the
Companies Act, 1956 and rules made thereunder,
7. In our opinion, the Company has adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly 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 cost records with a view to
determine whether they are accurate or complete.
9. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income-tax, sales tax, wealth tax, service tax, custom duty, excise
duty, Cess and other material statutory dues applicable to it.
(b) There were no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees'' state
insurance, Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2013 for a
period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31,2013 on account of disputes are given below:
Sr. Name of the Nature of
No statute dues Year
1. Finance Act,1994 Service Tax 2003-04 & 2004-05
Penalty for 2006-07
Input service tax
2. Madhya Pradesh Entry Tax 2005-06
Entry Tax Act, 1976
3. Rajasthan VAT Act, VAT 2004-05
2003
4. West Bengal VAT VAT 2004-05
Act, 2003
5. Andhra Pradesh VAT 2006-07
VAT Act, 2005
VAT 2009-10
6. Haryana VAT Act, VAT 2007-08
2003
Name of the Statute Amount
(Rs.In Lacs) Forum where dispute is pending
Finance Act 1994 1757.69 Customs, Excise and Service
Tax Appellate Tribunal
1.01 Commissioner (Appeals)
Madhya Pradesh Entry
Tax Act 1976 6.54 Joint Commissioner (Appeals),
Commercial Taxes
Rajasthan VAT Act 2003 37.09 Deputy Commissioner of
Commercial Tax (Appeal)
West Bengal VAT Act 2003 12.33 West Bengal VAT Appellate
Tribunal
Andhra Pradesh VAT Act 2005 10.56 Deputy Commissioner,Commercial
Taxes
49.04 Deputy Commissioner (Apeal)
Haryana VAT Act 2003 37.38 Joint Commissioner (Appeals)
10. There are no accumulated losses of the Company as at March 31,
2013. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debentures holders.
12. The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
13. As per the information and explanations given to us, the Company
is not a chit fund or nidhi mutual benefit fund/ society, therefore,
the provisions of para 4 (xiii) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
14. As per the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of para 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the letter of comfort given by
the Company for loans taken by Company''s subsidiary from banks are
not prima facie prejudicial to the interests of the Company.
16. According to the information and explanations given to us, in our
opinion, the term loans raised during the year have been applied for
the purposes for which they were raised.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
18. The Company has not made any preferential allotment of shares
during the year,
19. The Company has not issued any debentures during the year,
20. We have verified the end use of money raised through Qualified
Institutional Placement, as disclosed in note 41 to the Financial
Statement.
21. In our opinion and according to the information and explanations
given to us, no material fraud by the Company and no material fraud on
the Company was noticed or reported during year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 117365W)
(Gaurav J Shah)
(Partner)
(Membership No. 35701)
Plalce: Mumbai
Date : May 16, 2013
Mar 31, 2012
TO THE MEMBERS OF KALPATARU POWER TRANSMISSION LIMITED
1. We have audited the attached Balance Sheet of KALPATARU POWER
TRANSMISSION LIMITED ("the Company") as at March 31, 2012, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both 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,
(CARO), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 ('the Act'), we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that :
(i) 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;
(ii) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(iii) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(v) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, and subject to third party confirmations, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii. in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of written representations received from the Directors
as on March 31, 2012 taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2012
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956;
(Referred to in paragraph 3 of our report of even date)
1. In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets;
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased program of verification of its
fixed assets adopted by the Company which, in our opinion, is
reasonable, considering the size and the nature of its business. The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventory :
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
3. In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
(a) The Company has given loans to two companies. In respect of said
loans the maximum amount involved during the year is Rs 15,175.93 lacs
and the year end balance is Rs 15,175.93 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of the loans given by the Company are not prima facie prejudicial to
the interest of the Company.
(c) The said parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for the
sale of goods and services. During the course of audit, no major
weakness has been noticed in the internal controls in respect of these
areas.
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the internal audit functions carried out during the
year by firm(s) of Chartered Accountants appointed by the Mangement
have been commensurate with the size of the Company and the nature of
its business.
8. We have broadly 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 cost records with a view to
determine whether they are accurate or complete
9. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees' state insurance,
income-tax, sales tax, wealth tax, service tax, custom duty, excise
duty, Cess and other material statutory dues applicable to it.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at March 31, 2012 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31,2012 on account of disputes are given below:
Sr. Name of the
statute Nature
of dues Year Amount
(Rs. In Forum where dispute
is pending
No.
1. Finance
Act,1994 Service Tax 2003-04 1,759.48 Customs, Excise
and Service Tax
& 2004-05 Appellate Tribunal
Penalty for 2006-07 1.01 Commissioner
(Appeals)
Input
service tax
2. Madhya
Pradesh
Entry Tax Entry Tax 2005-06 6.54 Joint
Commissioner
(Appeals),
Act, 1976 Commercial Taxes
3. Rajasthan
VAT Act, 2003 VAT 2004-05 6.36 Deputy
Commissioner,
Commercial
Taxes (Appeals)
4. West Bengal
VAT Act, 2003 VAT 2004-05 12.33 West Bengal
VAT Appellate
Tribunal
5. Chattisgargh
VAT Act, VAT 2005-06 9.77 Assessing Officer
6. West Bengal
VAT Act, 2003 VAT 2008-09 192.73 Joint
Commissioner
(Appeals)
7. Andhra Pradesh
VAT Act, 2005 VAT 2006-07 10.56 Deputy
Commissioner,
Commercial Taxes
8. Bihar VAT Act,
2005 VAT 2004-05,
2005-06, 109.56 Deputy
Commissioner,
Commercial
2007-08,
2008-09 Taxes
& 2011-12
9. Haryana VAT
Act, 2003 VAT 2005-06 &
2006-07 19.27 Deputy
Commissioner
(Appeals)
2007-08 37.38 Joint
Commissioner
(Appeals)
10. There are no accumulated losses of the Company as at March 31,
2012. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debentures holders.
12. The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
13. As per the information and explanations given to us, the Company
is not a chit fund or nidhi mutual benefit fund/Society, therefore, the
provisions of para 4 (xiii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
14. As per the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of para 4(xiv) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the letter of comfort given by
the Company for loans taken by Company's subsidiary from banks are not
prima facie prejudicial to the interests of the Company.
16. According to the information and explanations given to us, in our
opinion, the term loans raised during the year have been applied for
the purposes for which they were raised.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. We have verified the end use of money raised through Qualified
Institutional Placement (QIP), as disclosed in note 40 to the Notes on
Financial Statement. Pending utilisation of the funds raised through
QIP, a sum of Rs 9,500 lacs have been temporarily deployed in mutual
funds and fixed deposit with banks.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company was noticed or
reported during year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No 117365W)
Gaurav J. Shah
Partner
(Membership No. 35701)
Place: Mumbai
Date : May 21, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of KALPATARU POWER
TRANSMISSION LIMITED ("the Company") as at March 31, 2011, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both 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 fi
nancial 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 signifi cant 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,
(CARO), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 (Ãthe Act) and on the basis of
such checks as we considered appropriate, and according to the
information and explanations given to us, we enclose in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts re ad with the notes
thereon, and subject to third party confi rmations, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with accounting
principles generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
ii. In the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash fl ows of the
Company for the year ended on that date.
5. On the basis of written representations received from the Directors
as on March 31, 2011 and taken on record by the Board of Directors,
none of the Directors is disqualifi ed as on March 31, 2011 from being
appointed as a director in terms of Section 274(1)(g) of the Companies
Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date on the accounts
of Kalpataru Power Transmission Limited)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fi xed
assets;
(b) As explained to us, the assets have been physically verifi ed by
the management in accordance with a phased program of verifi cation of
its fi xed assets adopted by the Company which, in our opinion, is
reasonable, considering the size and the nature of its business. The
frequency of verifi cation is reasonable and no material discrepancies
have been noticed on such physical verifi cation.
(c) During the year, the Company has not disposed off substantial part
of fi xed assets.
2. (a) The inventory has been physically verifi ed by the management
during the year at reasonable intervals. In our opinion, the frequency
of verifi cation is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verifi cation 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) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verifi cation of stocks have
been properly dealt with in the books of accounts.
3. (a) The Company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year is Rs.
13,832.33 lacs and the year end balance is Rs. 13,832.33 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of the loans given by the Company are not prima facie prejudicial to
the interest of the Company.
(c) The said parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount in respect of loans granted to
companies, fi rms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, fi rms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore, the provisions
of sub-clause (e), (f) and (g) of clause 4 (iii) of the Order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fi xed assets and for the
sale of goods and services. During the course of audit, no major
weakness has been noticed in the internal controls in respect of these
areas.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangement that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) 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
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time
6. According to the information and explanations given to us the
Company has not accepted any deposits during the year from public
within the meaning of the provisions of Section 58A and 58AA or any
relevant provisions of the Companies Act,1956 and rules made thereof.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company in
respect of generation of electricity from agriculture residue pursuant
to the rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
9. (a) According to the information and explanations given to us and
the records examined by us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales tax, wealth tax, service
tax, custom duty, excise duty cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute except the followings:
Sr. Name of the
statute Nature of dues Year Amount Forum where
dispute is
No (Rs. In lacs) pending
1. Finance
Act,1994 Service Tax 2003-04 1757.70 Customs, Excise
and Service
& 2004-05 Tax Appellate
Tribunal
Penalty for
input 2006-07 1.01 Commissioner
(Appeals),
service tax Commercial Taxes
2. Madhya
Pradesh
Entry Tax Entry Tax 2005-06 6.54 Joint
Commissioner
(Appeals),
Act, 1976 Commercial Taxes
3. Rajasthan
VAT Act,
2003 VAT 2004-05 6.36 High Court of
Rajasthan
VAT 2005-06 11.10 Assistant
Commissioner,
Commercial Taxes
4. West Bengal
VAT Act,
2003 VAT 2004-05 12.33 West Bengal VAT
Appellate
Tribunal
VAT 2007-08 186.49 Joint
Commissioner,
Commercial Taxes
5. Haryana
Value Added
Tax Act, VAT 2005-06 &
2006-07 19.27 Joint
Commissioner
(Appeals),
2003 Commercial Taxes
6. Rajasthan
Tax on
Entry of Entry Tax 2006-07 &
2007-08 2.78 Commercial Tax
Officer
Goods in
Local Area
Act, 1999
7. Andhra
Pradesh VAT
Act, 2005 VAT 2006-07 10.56 Deputy
Commissioner,
Commercial Taxes
8. Bihar VAT
Act, 2005 VAT 2005-06 to
2008-09 130.79 Deputy
Commissioner,
Commercial Taxes
9. The Mumbai
Stamp Act,
1958 Additional
Stamp 2005-06 Deputy
Collector of
Stamps
duty on land 7.56 Duty
10. There are no accumulated losses of the Company as at March 31,
2011. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a fi
nancial institution or bank or debentures holders.
12. The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
13. As per the information and explanations given to us, the Company
is not a chit fund or nidhi mutual benefi t fund/Society, therefore,
the provisions of para 4 (xiii) of the Companies (Auditors Report)
Order, 2003 are not applicable to the Company.
14. As per the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of para 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
15. The Company has given guarantees and letters of comfort in respect
of loans taken by the Companys subsidiary from banks
According to the information and explanations given to us, the terms
and conditions on which the Company has given guarantees and letters of
comfort are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination the balance sheet and cash fl ow statement of
the Company, we report that no funds raised on short-term basis have
been used for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. We have verifi ed the end use of money raised through Qualifi ed
Institutional Placement (QIP) as disclosed in note 25 of shedule "S"
forming part of financial statements. Pending utilisation of the fund
raised through QIP, a sum of Rs. 20,450 lacs has been temporarily
deployed in mutual funds and fi xed deposit with banks.
21. According to the information and explanations given to us, no
fraud on or by the Company was noticed or reported during the course of
our audit.
For Kishan M. Mehta & Co.,
Chartered Accountants
(Registration No.105229W)
Kishan M. Mehta
Partner
(Membership No. 13707)
Place: Ahmedabad
Date: May 16, 2011
For Deloitte Haskins & Sells,
Chartered Accountants
(Registration No 117365W)
Gaurav J. Shah
Partner
(Membership No. 35701)
Place: Ahmedabad
Date: May 16, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of KALPATARU POWER
TRANSMISSION LIMITED ("the Company") as at March 31,2010, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both 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,
(CARO), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 (the Act) and on the basis of
such checks as we considered appropriate, and according to the
information and explanations 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 in paragraph 3
above, we report as follows:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon, and subject to third party confirmations, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2010;
ii. In the case of the Profit & Loss Account, of the profit of the
Company for the year ended on that date; and
iii. In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31,2010 from being
appointed as a director in terms of Section 274(1) (g) of the Companies
Act, 1956;
(Referred to in paragraph 3 of our report of even date on the accounts
of Kalpataru Power Transmission Limited)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased program of verification of its
fixed assets adopted by the Company which, in our opinion, is
reasonable, considering the size and the nature of its business. The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) During the year, the Company has not disposed off substantial part
of fixed assets.
2. (a) The inventory has been physically verified by the management
during the year at reasonable intervals. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks have
been properly dealt with in the books of accounts.
3. (a) The Company has granted unsecured loans to two companies
covered in the register maintained under section 301 of the
CompaniesAct, 1956. The maximum amount involved during the year and
the year end balance is 12696.18 lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of the loans given by the Company are not prima facie prejudicial to
the interest of the Company.
(c) The said parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount in respect of loans granted to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore, the provisions
of sub-clause (e), (f) and (g) of clause 4 (iii) of the Order are not
applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for the
sale of goods and services. During the course of audit, no major
weakness has been noticed in the internal controls in respect of theses
areas.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangement that need to be entered into the Register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) 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
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. According to the information and explanations given to us the
Company has not accepted any deposits during the year from public
within the meaning of the provisions of Section 58A and 58AA or any
relevant provisions of the Companies Act, 1956 and rules made thereof.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company in
respect of generation of electricity from agriculture residue pursuant
to the rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
9. (a) According to the information and explanations given to us and
the records examined by us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it and no undisputed amounts payable in respect of such
dues were outstanding as at March 31,2010 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute except the followings:
Sr. Name of the statute Nature of dues Year Amount Forum where dispute
is pending
No (Rs. In Lacs)
1. Finance Act,1994 Penalty for 2005-06 120.29 Customs, Excise
delay and Service Tax
payment of
Service Tax Appellate Tribunal
2. Rajasthan Tax on EntryEntry Tax 2005-06 10.49 High Court of
Rajasthan
of Goods in Local Area
Act, 1999
3. Rajasthan VAT Act, VAT 2005-06 84.34 Deputy Commissioner
2003 Commercial Taxes
(Appeals)
4. Mumbai Stamp Act Additional
Stamp duty 2005-06 7.56 Deputy Collector of
Stamps
1958 on land Duty
5. Madhya Pradesh VAT VAT 2006-07 13.63 Deputy Commissioner
Act 2002 Commercial Taxes
2007-08 18.211
10. There are no accumulated losses of the Company as at March 31,
2010. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debentures holders.
12. The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
13. As per the information and explanations given to us, the Company
is not a chit fund or nidhi mutual benefit fund/Society, therefore, the
provisions of para 4 (xiii) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
14. As per the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of para 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
15. The Company has given guarantees and letters of comfort in respect
of loans taken by the Companys subsidiary companies from banks and
financial institution. According to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees and letters of comfort are not prejudicial to the interest
of the Company.
16. According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination the balance sheet and cash flow statement of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. The Company has not made any preferential allotment of shares
during the year.
19. According to the information and explanations given to us, during
the year, the Company had issued 700 debentures of Rs. 1,000,000 each
aggregating to Rs. 7,000 lacs and the Company is in the process of
creating security in respect of the debentures issued.
20. The Company has not raised any money by way of public issue during
the year.
21. We have been informed by the Company that a supervisor, in
collusion with persons of the contractors prepared forged weighment
slips and goods received notes of input material at the Collection
Center of the bio mass division resulting into a loss of Rs. 10.66 lacs
during the year under audit. The said loss has been accounted for in
the books of account and a police complaint has been lodged for which
investigations are in progress. Other than this, based on the audit
procedures performed for the purpose of reporting the true and fair
view of the financial statement and as per the information and
explanation given 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 Kishan M. Mehta & Co., For Deloitte Haskins & Sells,
Chartered Accountants Chartered Accountants
(Registration No.l05229W) (Registration Mo 117365W)
Kishan M. Mehta GauravJ. Shah
Partner Partner
(Membership No. 13707) (Membership No. 35701)
Place: Ahmedabad Place: Ahmedabad
Date: May 29,2010 Date: May 29,2010