Mar 31, 2018
Report on the Standalone lnd AS Financial Statements
We have audited the accompanying standalone lnd AS financial statements of Shri Krishna Devcon Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and 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 Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) ofthe Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone lnd 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 the Indian Accounting Standards (lnd AS) prescribed under Section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rule, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone lnd 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 lnd 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 ofthe Act and the Rules made thereunder.
We conducted our audit of the standalone lnd 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 lnd 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 lnd AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement ofthe standalone lnd AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the standalone lnd 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 lnd 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 lnd 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 lnd 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 lnd AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information ofthe Company for the year ended 31st March, 2017 and the transition date opening Balance Sheet as at 1st April, 2016 included in these standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by other auditor whose report for the year ended 31st March, 2017 and 31st March, 2016 dated 30 May, 2017 and 28 May, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in term of sub-section 11 of section 143 of the Act, we enclose in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by sub-section 3 of Section 143 ofthe Act, we reportthat:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss including 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 specified under Section 133 ofthe Act.
e) On the basis of the written representations received from the Directors as on March 31, 2018 taken on record by the Board of Directors, none of the Directors are disqualified as on March 31,2018 from being appointed as a Director in terms of sub-section 2 of Section 164 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 Bâ and
g) With respect to the other matters to be included in the Auditorsâ 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 does not have any pending litigations which would impact its financial position;
ii. The company did not have any long term contract including derivative contract for which there were any material foreseeable losses; and
iii. The company did not have amount, required to be transferred to the Investor Education and Protection Fund.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT OF SHRI KRISHNA DEVCON LIMITED FOR THE YEAR ENDED 31ST MARCH, 2018.
(Refer to in our report of even date)
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 by management, the Company does not have any immovable property in fixed asset.
ii. The inventory includes land, plots of land, completed buildings or apartments, land under development, building under development etc. The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and no material discrepancies were noticed on physical verification.
iii. In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 ofthe Act. Accordingly, paragraph 3 (iii) ofthe Order is not applicable to the Company.
iv. In our opinion and According to the information and explanation gives to us, the company has complied with the provisions of section 185 and 186 ofthe Act.
v. The company has not accepted any deposits from the public in accordance with the provisions of sections 73 to 76 ofthe Act and the rules framed there under.
vi. We are informed that the maintenance of cost records has not been specified by the Central Government under sub- section (1) of section 148 ofthe Act.
vii. a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues applicable to it including sales-tax, service tax, value added tax, GST, Income Tax, Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amount payable in respect of provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, GST, cess and any other undisputed statutory dues were outstanding at the end ofthe year for a period of more than six months from the date they become payable,
b) According to the information and explanations given to us there are no dues of provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues outstanding on account of any dispute.
viii. The company has not defaulted in repayment of dues to any Financial Institution or Bank. The company has no debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) ofthe Order is not applicable.
x. To the best our knowledge and according to the information and explanations given to us, no fraud by the Company or on the company by its officers and employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on the examination of records of the company, the company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
xii. According to the information and explanations given to us, the company is not a nidhi company. Accordingly, paragraph 3 (xii) ofthe Order is not applicable.
xiii. According to the information and explanations given to us and based on our examinations ofthe records ofthe Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required by applicable lnd AS.
xiv. According to the information and explanations give to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. According to the information and explanations given to us, the Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF SHRI KRISHNA DEVCON LIMITED FOR THE YEAR ENDED 31ST MARCH, 2 018.
(Refer to in our report of even date) Report on the internal financial controls under clause (i) of sub-section 3 of section 143 of the Act.
We have audited the internal financial controls over financial reporting of Shri Krishna Devcon Limited (âthe Companyâ) as of 31 March, 2018 in conjunction with our audit ofthe standalone Ind AS financial statements ofthe 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 controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act 2013 (âthe Actâ).
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 controls 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 control system over financial reporting.
Meaning of internal financial controls over financial reporting
A companyâs internal financial controls 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 controls over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the 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 controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by Institute of Chartered Accountants of India.
For M A K & Associates
Chartered Accountants
Firm Registration No. 003060C
Kunji Lai Kushwaha
Place: Indore
Partner
Date: 30.05.2018
M.No.415037
Mar 31, 2016
To,
The Members,
Shri Krishna Devcon Limited,
Mumbai
Report on the Financial Statements
We have audited the accompanying standalone financial statements of Shri Krishna Devcon Limited ("the Company") which comprise the Balance Sheet as at 31 March, 2016, the Statement of Profit and Loss and Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in sub-section 5 of Section 134 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 sub-section 10 of Section 143 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 auditors'' 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 March 31,2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order''), issued by the Central Government of India in exercise of powers conferred by sub-section 11 of section 143 of the Act, we enclose in the Annexure "A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by sub-section 3 of Section 143 of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the 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 March 31,2016 taken on record by the Board of Directors, none of the Directors are disqualified as on March 31, 2016 from being appointed as a Director in terms of sub-section 2 of Section 164 of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B" and
g) With respect to 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 does not have any pending litigations which would impact its financial position;
ii. The company did not have any long term contract including derivative contract for which there were any material foreseeable losses; and
iii. The company did not have amount, required to be transferred to the Investor Education and Protection Fund.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR''S REPORT OF SHRI KRISHNA DEVCON LIMITED FOR THE YEAR ENDED 31st MARCH, 2016. (Refer to in our report of even date)
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 explanation gives to us and on the basis of examination of the records of the company, the title deeds of immovable properties are held in the name of the company.
ii. The inventory includes land, plot of land, completed buildings, land under development, building under development etc. The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and no material discrepancies were noticed on physical verification.
iii. In our opinion and according to information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
iv. In our opinion and According to the information and explanation gives to us, the company has complied with the provisions of section 185 and 186 of the Act.
v. The company has not accepted any deposits from the public in accordance with the provisions of sections 73 to 76oftheActandthe rules framed there under.
vi. We are informed that the maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Act.
vii. a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, employees'' State Insurance, Income-tax, Sales-tax, Service Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amount payable in respect of Provident Fund, employees'' State Insurance, Income-tax, Sales-tax, Service Tax, duty of customs, duty of excise, value added taxcess and any other undisputed statutory dues were outstanding at the end of the year for a period of more than six months from the date they become payable.
b) According to the information and explanations given to us there are no dues of Provident Fund, employees'' State Insurance, Income-tax, Sales-tax, Service Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues outstanding on account of any dispute.
viii. The company has not defaulted in repayment of dues to any Financial Institution or Bank. The company has no debenture holders.
ix. In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
x. Based upon the audit procedures performed and the information and explanations given to us, no fraud by the Company or on the company by its officers and employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on the examination of records of the company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
xii. According to the information and explanations given to us, the company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examinations of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. The details of such related party transactions have been disclosed in the financial statements as required by applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR''S REPORT OF SHRI KRISHNA DEVCON LIMITED FOR THE YEAR ENDED 31st MARCH, 2016. (Refer to in our report of even date)
Report on the internal financial controls under clause (i) of sub-section 3 of section 143 of the Act.
We have audited the internal financial controls over financial reporting of Shri Krishna Devcon Limited ("the Company") as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s responsibility for internal financial controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act 2013 ("the Act").
Auditor''s responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 controls based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial control system over financial reporting.
Meaning of internal financial controls over financial reporting
A company''s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial controls over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent limitations of internal financial controls over financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by lCAI.
For Khandelwal & Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
CA. Durgesh Khandelwal
Place: Indore Partner
Date : 28.05.2016 M.No. 077390
Mar 31, 2015
We have audited the acCompanying standalone financial statements of
Shri Krishna Devcon Limited (''the Company'') which comprise the
Balance Sheet as at 31 March, 2015, the Statement of Profit and Loss
and Cash flow statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in sub-section 5 of Section 134 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under sub- section 10 of Section 143 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 auditors' 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 March 31, 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 of India in exercise of
powers conferred by sub-section 11 of section 143 of the Act, we
enclose in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by sub-section 3 of Section 143 of the Act, we report
that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the 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 March 31, 2015 taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2015
from being appointed as a Director in terms of sub-section 2 of Section
164 of the Act.
f) 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 does not have any
pending litigation which would impact its financial position.
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses; and
iii. The Company did not have amount, required to be transferred to the
Investor Education and Protection Fund.
Annexure Referred to in paragraph 1 under the heading "Report on other
Legal and Regulatory Requirements of our report of even date to the
Members of Shri Krishna Devcon Limited.
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.
ii. a) The inventory includes land, plot of land,
completed buildings, land under development, building under development
etc. The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act.
iv. 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. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. The Company has not accepted any deposits from the public in
accordance with the provisions of sections 73 to 76 of the Act and the
rules framed there under.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under subsection 1 of Section 148 of the
Act and are of the opinion that prima facie the prescribed cost records
have been maintained. However, we have not made a detailed examination
of the cost records with a view to determine whether they are accurate
or complete.
vii. a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues,
including dues pertaining to Income Tax, Cess and any other statutory
dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund., income tax,
wealth Tax, cess and other undisputed statutory dues were outstanding
at the end of the year for a period of more than six months from the
date they become payable.
c) 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 or Cess outstanding on account of any dispute.
d) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, there was no
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under.
viii. The Company has no accumulated losses as at 31st March, 2015, and
it has not incurred cash losses in the financial year ended on that
date or in the immediately preceding financial year.
ix. The Company has not defaulted in repayment of dues to any Financial
Institution or Bank. The Company has no debenture holders.
x. According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from banks or
financial institutions.
xi. Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
xii. Based upon the audit procedures performed and the information and
explanations given to us, no fraud on, or by the Company, has been
noticed or reported during the year.
For Khandelwal & Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
CA. Durgesh Khandelwal
Place: Indore Partner
Date : 30.05.2015 M. No. 077390
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Shri Krishna
Devcon Limited ("the Company") which comprise the Balance Sheet as at
31st March, 2014 the Statement of Profit and Loss and Cash flow
statement for the year ended and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act") read with General Circular
15/2013 dated September 13, 2013 issued by the Ministry of Corporate
Affairs in respect of Section 133 of Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s 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 entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the 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 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:
(I) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditor''s Report), Order 2003 ("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, 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 purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 read with
General Circular 15/2013 dated September 13, 2013 issued by the
Ministry of Corporate Affairs in respect of Section 133 of Companies
Act, 2013; and
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the Directors are disqualified as on 31st March 2014, from
being appointed as a Director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
1. Fixed Assets-:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) The major portions of fixed assets have been physically verified by
the management on a sample basis during the year and in our opinion the
frequency of verification is reasonable. No material discrepancies were
noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
2. Inventories-:
a) The inventory includes land, plot of land, completed buildings, land
under development, building under development etc. The management has
conducted physical verification of inventory at reasonable intervals
during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. Loans and advances either granted or taken-:
a) The Company has not granted any loans during the year to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
In view of clause 4 (iii) (a) of the companies (Auditor''s Report)
Order, 2003, clause 4 (iii) (b, c & d) are not applicable to the
company.
b) The Company had taken loan from eight parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 14,07,44,264/- and the
year end balance of loans taken from such parties was Rs.
10,37,70,022/-.
c) In our opinion and according to information and explanation given to
us, the rate of interest and other terms and conditions for such loans
are not prima facie prejudicial to the interest of the company.
d) The loans taken are repayable on demand and there is no repayment
schedule. Therefore, the question of repayment being regular does not
arise and there is no overdue amount of such loans.
4. Internal Controls-:
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 provisions
of services, During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. Transactions with parties under section 301 of the Companies Act
1956-:
a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register
maintained under that section.
b) In our opinion and according to the information and explanation to
us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the period have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. Public Deposits-:
In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public within
the meaning of section 58A, 58AA, or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under.
7. Internal Audit System-:
In our opinion, and according to information and explanation given to
us, the company has an Internal Audit system commensurate with its size
and the nature of its business.
8. Cost Records-:
We have broadly reviewed the cost records maintained by the company
pursuant to 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
records have been maintained.
9. Statutory Dues-:
a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues,
including dues pertaining to Income Tax, Cess and any other statutory
dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund, Income tax,
wealth tax, cess and other undisputed statutory dues were outstanding
at the end of the year for a period of more than six months from the
date they become payable.
c) 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 or Cess outstanding on account of any dispute.
10. Accumulated Losses-:
The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Dues to Financial Institutions / Banks-:
The company has not defaulted in repayment of dues to any Financial
Institution or Bank. The company has no debenture holders.
12. Loans against pledge of securities-:
According to the information and explanations given to us, and based on
the documents and records produced to us, the company has not granted
loans and advances on the basis of security by way pledge of shares,
debentures and other securities.
13. Applicability of provisions of special statutes-:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ societies.
14. Investments-:
In our opinion, the company is not dealing or trading in shares,
securities, debentures or other investments. Accordingly, provisions of
clause 4(xiv) of the order are not applicable.
15. Guarantees-:
According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from banks or
financial institutions.
16. Application of Funds raised from bank-:
The Company has not raised any term loan from bank during the period.
Accordingly, provisions of clause 4(xvi) of the order are not
applicable.
17. Utilisation of Funds-:
According to the information and explanations given to us, and on an
overall examination of Balance Sheet of the company, fund raised on
short term basis have prima facie not been used for long term
investment.
18. Preferential Allotment of shares-:
The Company has not made preferential allotment of shares to parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
19. Securities created in respect of Debentures issued
The company has not issued debentures during the year.
20. End use of money in case of public issue-:
The Company has not raised any money by public issue during the year.
21. Frauds-:
Based upon the audit procedures performed and the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Khandeiwal & Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
(CA. Durgesh Khandeiwal)
Partner
M.No. 077390
Place : Indore
Date : 30.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Shri Krishna
Devcon Limited ("the Company'''') which comprise the Balance Sheet as at
31 March, 2013, the Statement of Profit and Loss and Cash flow
statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 (''''the Act''''). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report), Order 2003 ("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, 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 purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956; and
e) on the basis of written representations received from the directors
as on 31 March, 2013, and taken on record by the Board of Directors,
none of the Directors are disqualified as on 31 March 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
1. Fixed Assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) The Major portions of fixed assets have been physically verified by
the management on a sample basis during the year and in our opinion the
frequency of verification is reasonable. No material discrepancies were
noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
2. Inventories
a) The inventory includes land, plot of land, completed buildings, land
under development, building under development etc. The management has
conducted physical verification of inventory at reasonable intervals
during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. Loans and advances either granted or taken
a) The Company has not granted any loans during the year to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
In view of clause 4 (iii) (a) of the companies (Auditor''s Report)
Order, 2003, clause 4 (iii) (b, c & d) are not applicable to the
company.
b) The Company had taken loan from eight parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 136,078,922/- and the
year end balance of loans taken from such parties was Rs. 136,078,922/-.
c) In our opinion and according to information and explanation given to
us, the rate of interest and other terms and conditions for such loans
are not prima facie prejudicial to the interest of the company.
d) The loans taken are repayable on demand and there is no repayment
schedule. Therefore, the question of repayment being regular does not
arise and there is no overdue amount of such loans.
4. Internal Controls
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 provisions
of services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. Transactions with parties under section 301 of the Companies Act
1956
a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register
maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the period have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. Public Deposits
In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public within
the meaning of section 58A, 58AA, or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under.
7. Internal Audit System
In our opinion, and according to information and explanation given to
us, the company has an Internal Audit system commensurate with its size
and the nature of its business.
8. Cost Records
We have broadly reviewed the cost records maintained by the company
pursuant to 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
records have been maintained.
9. Statutory Dues
a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues, including
dues pertaining to Income Tax, Cess and any other statutory dues with
the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund, income tax,
wealth tax, cess and other undisputed statutory dues were outstanding
at the end of the year for a period of more than six months from the
date they become payable.
c) 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 or Cess outstanding on account of any dispute.
10. Accumulated Losses
The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Dues to Financial Institutions/Banks
The company has not defaulted in repayment of dues to any Financial
Institution or Bank. The company has no debenture holders.
12. Loans against pledge of securities
According to the information and explanations given to us, and based on
the documents and records produced to us, the company has not granted
loans and advances on the basis of security by way pledge of shares,
debentures and other securities.
13. Applicability of provisions of special statutes
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ Societies.
14. Investments
In our opinion, the company is not dealing or trading in shares,
securities, debentures or other investments. Accordingly, provisions of
clause 4(xiv) of the order are not applicable.
15. Guarantees
According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from banks or
financial institutions.
16. Application of Funds raised from bank
The Company has applied the term loans obtained during the period for
the purpose for which the said term loans were obtained.
17. Utilisation of Funds
According to the information and explanations given to us, and on an
overall examination of Balance Sheet of the company, fund raised on
short term basis have prima facie not been used for long term
investment.
18. Preferential Allotment of shares
The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. Securities created in respect of Debentures issued
The company has not issued debentures during the year.
20. End use of money in case of public issue
The Company has not raised any money by public issue during the year.
21. Frauds
Based upon the audit procedures performed and the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Khandelwal & Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
(CA Durgesh Khandelwal)
Partner M.No. 077390
Place : Indore
Date : 30.05.2013
Mar 31, 2012
1. We have audited the attached Balance sheet of Shri Krishna Devcon
Limited, Mumbai (the Company) as at 31st March, 2012 and also the
Profit & Loss Account of the company and cash flow statement for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We have 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 misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, We Annex hereto a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of accounts of the Company.
c) The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by the report are in agreement with the books of accounts of
the company.
d) In our opinion, the Balance Sheet, Profit & Loss Account and cash
flow statement comply with the accounting standard referred to in
section 211(3C) of the Companies Act, 1956, and the Rules framed there
under to the extent applicable.
e) On the basis of the written representations received from the
Directors as on
31.03.2012 and taken on record by the board of directors, we report
that none of the directors is disqualified as on 31.03.2012 from being
appointed as a director of the Company in terms of clause (g) of sub
section (1) of section 274 of The Company Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, said Accounts, read together with notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
ii) In the case of the Profit &. Loss Account, of the Profit of the
company for the year ended on that date:
iii) In the case of the cash flow statement, of the cash flows of the
company for the year ended on that date.
1. Fixed Assets-:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) The Major portions of fixed assets have been physically verified by
the management on a sample basis during the year and in our opinion the
frequency of verification is reasonable. No material discrepancies were
noticed on such verification.
c) There was no substantial disposal of fixed assets during the year.
2. Inventories-:
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. Loans and advances either granted or taken-:
a) The Company has not granted any loans during the year to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
In view of clause A (iii) (a) of the companies (Auditor's Report)
Order, 2003, clause 4 (iii) (b, c & d) are not applicable to the
company.
b) The Company had taken loan from seven parties covered in the
register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 55551281/- and
the year end balance of loans taken from such parties was Rs. 53051281/-.
c) In our opinion and according to information and explanation given to
us, the rate of interest and other terms and conditions for such loans
are not prima facie prejudicial to the interest of the company.
d) The loans taken are repayable on demand and there is no repayment
schedule
.Therefore, the question of repayment
being regular does not arise and there is no overdue amount of such
loans.
4. Internal Controls-:
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 provisions
of services, During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. Transactions with parties under section 301 of the Companies Act
1956-:
a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register
maintained under that section.
b) In our opinion and according to the information and explanation to
us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the period have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. Public Deposits-:
In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public within
the meaning of section 58A, 58AA, or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under.
7. Internal Audit System-:
In our opinion, and according to information and explanation given to
us, the company has an Internal Audit system commensurate with its size
and the nature of its business.
8. Cost Records-:
According to the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 209(1) (d) of the Companies Act, 1956 for any
of the activities of the company.
9. Statutory Dues-:
a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues, including
dues pertaining to Income Tax, Cess and any other statutory dues with
the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund., income tax,
wealth Tax, cess and other undisputed statutory dues were outstanding
at the end of the year for a period of more than six months from the
date they become payable.
c) 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 or Cess outstanding on account of any dispute.
10. Accumulated Losses-:
The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Dues to Financial Institutions/Banks-:
The company has not defaulted in repayment of dues to any Financial
Institution or Bank. The company has no debenture holders.
12. Loans against pledge of securities-:
According to the information and explanations given to us, and based on
the documents and records produced to us, the company has not granted
loans and advances on the basis of security by way pledge of shares,
debentures and other securities.
13. Applicability of provisions of special statutes-:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ Societies.
14. Investments -:
In respect of dealing/trading in shares, securities, debentures and
other investments, in our opinion and according to the information and
explanations given us, proper records have been maintained of the
transactions and contracts and timely entries have been made therein.
The shares, securities, debentures and other securities have been held
by the Company, in its own name.
15. Guarantees-:
According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from banks or
financial institutions; hence whether the terms and conditions are
prejudicial to the interest of the company does not arise.
16. Application of Funds raised from bank-:
The Company has applied the term loans obtained during the period for
the purpose for which the said term loans were obtained.
17. Utilisation of Funds-:
According to the information and explanations given to us, and on an
overall examination of Balance Sheet of the company, fund raised on
short term basis have prima facie not been used for long term
investment.
18. Preferential Allotment of shares-:
The Company has made preferential allotment of shares to parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. In our opinion, the price at which Shares have been issue is
not prejudicial to the interest of the company.
19. Securities created in respect of Debentures issued -:
The company has not issued debentures during the year, hence the
question of whether security or charge has been created in respect of
said debentures issued, does not arise.
20. End use of money in case of public issue -:
During the, period covered by our audit report the Company has not
raised any money by public issue.
21. Frauds-:
Based upon the audit procedures performed by us, to the best of our
knowledge and belief and according to the information and explanations
given to us by the management no fraud on, or by the Company, has been
noticed or reported during the period that causes the financial
statements to be materially misstated.
For Khandelwal & Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
(CA Durgesh Khandelwal)
Partner M.No. 077390
Place: Indore
Date : 30.05.2012
Mar 31, 2010
We have audited the attached Balance sheet of Shri Krishna Devcon
Limited, Mumbai ("the Company") as at 31st March, 2010 and also the
Profit & Loss Account of the company and cash flow statement for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Companys management. Our responsibility is
to express an opinion on these financial statements based on our audit.
1. We have 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 misstatements. 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.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, We Annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to above, We
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books of accounts of the Company;
c) The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by the report are in agreement with the books of accounts of
the company.
d) In our opinion, the Balance Sheet , Profit & Loss Account and cash
flow statement comply with the accounting standard referred to in
section 211(3C) of the Companies Act, 1956, to the extent applicable.
e) On the basis of the written representations received from the
Directors as on 31.03.2010 and taken on record by the board of
directors, we report that none of the directors is disqualified as on
31.03.2010 from being appointed as a director of the Company in terms
of clause (g) of sub section (1) of section 274 of The Companies Act,
1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, said Accounts, read together with notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India :
I) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
II) In the case of the Profit & Loss Account, of the Profit of the
company for the year ended on that date:
III) In the case of the cash flow statement, of the cash flows of the
company for the year ended on that date.
Annexure Referred to in Paragraph 3 of Our Report of Even Date to the
Members of Shri Krishna Devcon Limited
1. Fixed Assets-:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of Fixed assets on the
basis of available information.
b) The Major assets have been physically verified by the management on
a sample basis during the year and in our opinion the frequency of
verification is reasonable. No material discrepancies were noticed on
such verification.
c) There was no substantial disposal of fixed assets during the year.
2. Inventories-:
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. Loans and advances either granted or taken-:
a) The Company has not granted any loans during the year to the parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
In view of clause 4 (iii) (a) of the companies (Auditors Report)
Order, 2003, clause 4 (iii) (b, c & d) are not applicable to the
company.
b) The Company had taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 64,50,000/- and the
year end balance of loans taken from such parties was Rs. 64,50,000/-.
c) In our opinion and according to information and explanation given to
us , the rate of interest and other terms and conditions for such loans
are not prima facie prejudicial to the interest of the company.
d) In respect of loans taken, repayment of the principal amount is as
stipulated.
4. Internal Controls-:
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 . During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas.
5. Transactions with parties under section 301 of the Companies act,
1956-:
a) Based upon the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the particulars of contracts or arrangements referred to in section 301
of the Companies Act, 1956, have been entered in the register
maintained under that section.
b) In our opinion and according to the information and explanation to
us , the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lakhs in respect of
any party during the period have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. Public Deposits-:
In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public within
the meaning of section 58 A, 58AA, or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder.
7. Internal Audit System-:
In our opinion, and according to information and explanation given to
us, the company has an Internal Audit system commensurate with its size
and the nature of its business.
8. Cost Records-:
According to the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 209 (1) (d) of the Companies Act, 1956 for any
of the activities of the company.
9. Statutory Dues-:
a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues, including
dues pertaining to Income Tax, Cess and any other statutory dues with
the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of provident fund, income tax,
wealth Tax, cess and other undisputed statutory dues were outstanding
at the end of the year for a period of more than six months from the
date they become payable.
c) 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 or Cess outstanding on account of any dispute.
10. Accumulated Losses-:
The Companys accumulated losses at the end of the financial period,
are less then fifty per cent of its net worth and it has not incurred
any Cash losses during the financial period ended on that date or in
the immediately preceding financial period.
11. Dues to Financial Institutions/Banks-:
The company has not defaulted in repayment of dues to any Financial
Institution or Bank. The company has no debenture holders.
12. Loans against pledge of securities-:
According to the information and explanations given to us, and based on
the documents and records produced to us, the company has not granted
loans and advances on the basis of security by way pledge of shares,
debentures and other securities.
13. Applicability of provisions of special statutes-:
In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ Societies.
14. Investments -:
In respect of dealing/trading in shares, securities, debentures and
other investments, in our opinion and according to the information and
explanations given us, proper records have been maintained of the
transactions and contracts and timely entries have been made therein.
The shares, securities, debentures and other securities have been held
by the Company, in its own name.
15. Guarantees-:
According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from banks or
financial institutions; hence whether the terms and conditions are
prejudicial to the interest of the company does not arise.
16. Application of Funds raised from bank-:
The Company has applied the term loans obtained during the period for
the purpose for which the said term loans were obtained.
17. Utilization of Funds-:
According to the information and explanations given to us, and on an
overall examination of Balance Sheet of the company, fund raised on
short term basis have prima facie not been used for long term
investment.
18. Preferential Allotment of shares-:
According to the information and explanations given to us, the Company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under Section 301 of the Companies
Act, 1956 and therefore the provisions of clause 4 (xviii) of the order
are not applicable to the company.
19. Securities created in respect of Debentures issued -:
The company has not issued debentures during the year, hence the
question of whether security or charge has been created in respect of
said debentures issued, does not arise.
20. End use of money in case of public issue -:
During the period covered by our audit report, the Company has not
raised any money by public issue.
21. Frauds-:
Based upon the audit procedures performed by us, to the best of our
knowledge and belief and according to the information and explanations
given to us by the management, no fraud on, or by the Company, has been
noticed or reported during the period that causes the financial
statements to be materially misstated.
For Khandelwal and Khandelwal Associates
Chartered Accountants
Firm Registration No. 008389C
(Durgesh Khandelwal)
Partner
M.NO. 077390
Place : Mumbai
Date : 29.05.2010
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