We have audited the accompanying standalone financial statements of
Kaiser Corporation Limited (the Company),which comprise the Balance
Sheet as at 31 March2015, 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 (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 of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
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
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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
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 31 March, 2015, its profit and its cash flows for the year ended on
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors'' Report) Order, 2015 (the
Order), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31 March, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
(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 does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
iii. There is no amount required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 of our report of even date)
(I) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has regular programme of physical verification of its
fixed assets by which all the fixed assets are verified in a phased
manner on yearly basis. In our opinion, the periodicity of physical
verification is reasonable having regard to the size of the Company and
nature of its assets. No discrepancies were noticed on such
(ii) (a) In our opinion and according to information and explanations
given to us, physical verification of
inventory has been conducted at reasonable intervals by the management.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of business.
(c) On the basis of examination of the inventory records and according
to the information and explanations given to us, the Company has
maintained proper records of inventory. The discrepancies noticed on
physical verification of stock as compared to book records were not
material and the same have been properly dealt with in the book of
(iii) In respect of loans, secured or unsecured, granted to Companies,
firms or other parties covered in the register maintained under Section
189 of the Act:
(a) The Company has granted interest free unsecured loan to a Company
covered in the register maintained under Section 189 of the Act. The
maximum amount involved during the year was Rs. 2,415,000 and year- end
balance was Rs. 2,365,000.
(b) In our opinion and according to the information and explanation
given to us, the aforesaid loan is interest free and the loan is
repayable on demand and there is no fixed term for repayment.
Accordingly, paragraph 3 (iii)(b) of the Order is not applicable to the
(c) There are no overdue amounts of more than Rupees one lakh in
respect of the loan granted to a Company listed 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. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
(v) The Company has not accepted any deposits during the year from the
public to which the directives issued by the Reserve Bank of India and
the provisions of Sections73 to 76 and any other relevant provisions of
the Act and the rules framed there under apply.
(vi) According to the information and explanations given to us, the
Company is maintaining records pursuant to Rules made by the Central
Government for the maintenance of cost records under SubSection (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, wealth tax, value added tax, cess and any other statutory
dues with the appropriate authorities. There are no arrears of
outstanding statutory dues as at the 31 March, 2015 for a period of
more than six months from the date they became payable. As informed,
statutory dues in the nature of duty of customs, duty of excise and
service tax are not applicable to the Company.
b) According to information and explanations given to us, there are no
dues on account of income tax, wealth tax sales tax, value added tax
and cess which have not been deposited with the appropriate authorities
on account of any dispute.
(viii) The Company has accumulated losses as at the end of the
financial year and its accumulated losses are not more then fifty
percent of its net worth. The Company has not incurred cash losses
during the financial year and in the immediately preceding financial
(ix) In our opinion and according to information and explanations given
to us, the Company has no borrowings from banks, financial institutions
and by way of debentures.
(x) According to information and explanations given to us, the Company
has given guarantee for loans taken by its subsidiary company from
bank. However, in our opinion, the terms and conditions of the said
loan are prima facie not prejudicial to the interest of the Company.
(xi) The Company has not raised any term loan during the year.
(xii) During the course of our examination of the books of account and
records of the Company, carried out in accordance with generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any instance
of fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by management.
FOR SURESH SURANA & ASSOCIATES LLP
ICAI Reg. No. 121750W/W-100010
Membership No.: 102306
Mumbai; Dated: 28.5.2015