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« Mar 14
Auditor's Report (KCP) Year End : Mar '15
We have audited the accompanying standalone financial statements of The
 KCP Limited, Chennai, 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 significant accounting
 policies and other explanatory information.
 
 Management''s Responsibility for the Standalone Financial Statements:
 
 The Company''s Board of Directors is responsible for the matters stated
 in Section 134(5) of the Companies Act, 2013 with respect to the
 preparation of these standalone financial statements that give a true
 and fair view of the financial position, financial performance and cash
 flows of the Company in accordance with the accounting principles
 generally accepted in India, including the Accounting standards
 specified under section 133 of Companies Act, 2013 read with Rule 7 of
 Companies (Accounts) Rules, 2014. This responsibility also includes
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding of the assets of the company and
 for preventing and detecting the frauds and other irregularities;
 selection and application of appropriate accounting policies; making
 judgments and estimates that are reasonable and prudent; and design,
 implementation and maintenance of adequate internal financial controls,
 that were operating effectively for ensuring the accuracy and
 completeness of the accounting records, relevant to the preparation and
 presentation of the financial statements that give a true and fair view
 and are free from material misstatement, whether due to fraud or error.
 
 Auditor''s Responsibility
 
 Our responsibility is to express an opinion on these standalone
 financial statements based on our audit.
 
 We have taken into account the provisions of the Companies Act, the
 accounting and auditing standards and matters which are required to be
 included in the audit report under
 
 the provisions of the Companies Act and the Rules made thereunder.
 
 We conducted our audit in accordance with the Standards on Auditing
 specified under Section 143(10) of the Companies Act. Those standards
 require that we comply with ethical requirements and plan and perform
 the audit to obtain reasonable assurance about whether the financial
 statements are free from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and the disclosures in the financial statements. The
 procedures selected depend on the auditor''s judgment, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud of error. In making those risk
 assessments, the auditor considers internal financial control relevant
 to the Company''s preparation of financial statements that give a true
 and fair view in order to design audit procedures that are appropriate
 in the circumstances, but not for the purpose of expressing an opinion
 on whether the company has in place an adequate internal financial
 controls system over financial reporting and the operating
 effectiveness of such controls. An audit also includes evaluating the
 appropriateness of the accounting policies used and the reasonableness
 of the accounting estimates made by the Company''s Directors, as well as
 evaluating the overall presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion on the standalone
 financial statements.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the aforesaid standalone financial statements
 give the information required by the Companies Act in the manner so
 required and give a true and fair view in conformity with the
 accounting principles generally accepted in India, of the state of
 affairs of the Company as at 31st March, 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 Government of India in terms of sub-section
 (11) of section 143 of the Act, we give in the Annexure a statement on
 the matters specified in the paragraph 3 and 4 of the Order, to the
 extent applicable.
 
 2) As required by Section 143(3) of the Companies Act, 2013 we report
 that:
 
 a) We have sought and obtained all the information and explanations
 which to the best of our knowledge and belief were necessary for the
 purpose of our audit.
 
 b) In our opinion, proper books of account as required by law have been
 kept by the Company so far as it appears from our examination of those
 books.
 
 c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
 Flow Statement dealt with by this Repot are in agreement with the books
 of account;
 
 d) In our opinion, the aforesaid standalone financial statements comply
 with the Accounting Standards specified under Section 133 of the
 Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
 2014;
 
 e) On the basis of written representations received from the directors
 as on 31st March, 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 Companies
 Act, 2013;
 
 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 27 to the
 financial statements;
 
 ii. The company has made provision, as required under the applicable
 law or accounting standards, for material foreseeable losses, if any,
 on long term contracts and did not have derivative contracts - Refer
 Note 48 to the financial statements;
 
 iii. There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 company.
 
 Annexure to the Independent Auditor''s Report:
 
 The Annexure referred to in Paragraph 1 under the heading of Report
 on other Legal and Regulatory Requirements of our report of even
 date, to the members of THE KCP LIMITED, CHENNAI for the year ended 31
 March 2015. We report that :
 
 1.1 The company has maintained proper records showing full particulars
 including quantitative details and situation of its fixed assets.
 
 1.2 The Fixed Assets are physically verified by the management
 according to a phased program designed to cover all the items over a
 period of three years which, in our opinion, is reasonable having
 regard to the size of the company and the nature of its assets.
 Pursuant to the program, a portion of the fixed assets has been
 physically verified by the management during the year and no material
 discrepancies have been noticed on such verification.
 
 2.1 The inventory has been physically verified by the management at
 reasonable intervals during the year under report. In our opinion, the
 frequency of such verification is reasonable.
 
 2.2 In our opinion, the procedures of physical verification of
 inventories followed by the management are reasonable and adequate in
 relation to the size of the company and the nature of its business.
 
 2.3 On the basis of our examination of the inventory records, in our
 opinion, the company is maintaining proper records of its inventory.
 The discrepancies noticed on physical verification of inventories as
 compared to book records were not material.
 
 3.1 The company has not granted any loans to companies, firms or other
 parties covered in the register maintained under Section 189 of the
 Companies Act 2013.  Therefore the provisions of clause 3(iii), (iii)a,
 and (iii) (b) of the said order are not applicable to the company.
 
 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 with regard
 to purchases of inventory, fixed assets and with regard to the sale of
 goods and services. Further, during the course of our audit, we have 
 not come across any instances of major weaknesses in internal control 
 that require correction and have so continued without correction.
 
 5. In our opinion the company has complied with the provisions of
 section 73 to 76 and other applicable provisions of the Companies Act,
 2013 and Companies (Acceptance of Deposits) Rules, 2014 with regard to
 the deposits accepted from the public. According to the information
 furnished to us, no Order has been passed on the company by the Company
 Law Board or National Company Law Tribunal or Reserve Bank of India or
 any Court or any other Tribunal for non- compliance with the provisions
 of Sections 73 to 76 of the Companies Act 2013.
 
 6. We have broadly reviewed the books of account and records maintained
 by the company at its cement, engineering and electric power generation
 units pursuant to the Rules made by the Central Government for the
 maintenance of Cost Records under section 148 of the Companies Act,
 2013 and we are of the opinion that prima facie the prescribed accounts
 and records have been made and maintained. We have not, however, made a
 detailed examination of the records with a view to determine whether
 they are accurate or complete.
 
 7.1 According to the information and explanations given to us and the
 basis of our examination of the records of the company, in our opinion,
 the company is regular in depositing with the appropriate authorities,
 the undisputed statutory dues including Provident Fund, Employees''
 State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty
 of Customs, duty of Excise, Value added tax, Cess and other material
 statutory dues applicable to it.
 
 According to the information and explanations given to us, no
 undisputed amounts payable in respect of Provident Fund, Income Tax,
 Sales Tax, Wealth Tax, Service Tax, duty of customs, value added tax,
 cess and other material statutory dues were in arrears as at 31st March
 2015 for a period of more than six months from the date they became
 payable.
 
 7.2 According to the information and explanations given to us, there
 were no amounts of Sales Tax, duty of
 
 Nature of dues            Name of the statute          Period
 
 Excise duty and related   The Central Excise Act,   1996-2013
 demands                   1944
 
 Sales tax and related     The AP Sales Tax Act,       1996-01
 demands                   1957
 
 Sales tax and related     The UP Sales Tax Act,          1988
 demands                   1948
 
 Forest Permit Charges     A.P Forest Produce          2010-15
                           transit Rules 1970
 
 Royalty                   MMDR Act,1957               1986-87
 
 Net Present Value of      The Forest Conservation     2014-15
 Safety Zone Area          Act,1980
 
 Income Tax                The Income Tax Act 1961     2011-12
 
 Nature of dues                     Amount in Rs    Forum where the
                                                   dispute is pending
 
 Excise duty and related demands    33,73,07,556   At various Appellate 
                                                   forums
 
 Sales tax and related demands         80,99,276   Hon''ble AP High 
                                                   Court
 
 Sales tax and related demands         19,97,469   Hon''ble Allahabad 
                                                   High Court
 
 Forest Permit Charges               2,09,57,218   Hon''ble AP High Court
 
 Royalty                                  93,056   ADMG - Guntur
 
 Net Present Value of Safety           17,87,100   DFO - Guntur
 Zone Area
 
 Income Tax                            11,32,117   CIT (Appeals)
 
 7.3 According to the information and explanations given to us, amounts
 which were required to be transferred to the investor education and
 protection fund in accordance with the relevant provisions of the
 Companies Act, 1956 and rules there under has been transferred to such
 fund within time.
 
 8. The company had no accumulated losses at the end of the financial
 year, and it did not incur cash losses during the financial year
 covered by our audit and in the immediately preceding financial year.
 
 9. According to the records of the company examined by us, and the
 information and explanations given to us, there were no defaults in
 repayment of dues to financial institutions, banks or debenture holders
 at the date of the Balance Sheet.
 
 10. In our opinion, and according to the information and the
 explanations given to us, the company has not given any guarantee for
 loans taken by others from banks or financial institutions during the
 year under report.
 
 11. In our opinion, and according to the information and explanations
 given to us, the term loans taken by the company have been applied for
 the purpose for which they were raised.
 
 12. During the course of our examination of the books and records of
 the company, carried out in accordance with the generally accepted
 audited practices in India, and according to the information and
 explanations given to us, we have neither come across any instance of
 material fraud on or by the company, noticed or reported during the
 year, nor have we been informed of any such case by the management.
 
 Customs, duty of Excise, Cess, Income Tax, Wealth Tax, Service Tax that
 have been disputed by the company, and hence, were not remitted to the
 concerned authorities at the date of the Balance Sheet under report,
 except.
 
 Place: Chennai 
 Date: 18th May, 2015
 
                                               For BRAHMAYYA & CO 
                                             Chartered Accountants 
                                              Firm Regd No 000513S
  
      T. V. Ramana
        Partner
 (ICAI Memb. No. 200523)
 
Source : Dion Global Solutions Limited
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