Kalyani Investment Company Limited Report on the Financial Statements
I have audited the accompanying financial statements of Kalyani
Investment Company Limited (the Company) which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 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 the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting 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 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.
My responsibility is to express an opinion on these financial
statements based on my audit.
I 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
I conducted my audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that I 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 financial control relevant to the Company''s
preparation of the financial statements that give 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 Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion on the financial
In my opinion and to the best of my information and according to the
explanations given to me, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March, 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 terms of
sub-section (11) of Section 143 of the Act, I give in the Annexure a
statement on the matters specified in paragraph 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, I report that :
a) I have sought and obtained all the information and explanations
which to the best of my knowledge and belief were necessary for the
purposes of my audit;
b) In my opinion, proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
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 my opinion, the aforesaid 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 written representations received from the directors
as at 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as at 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act; and
f) With respect to the other matters included in the Auditor''s Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in my opinion and to the best of my information and according to
the explanations given to me :
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
derivatives contracts for which there were any material foreseeable
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund.
On the basis of such checks as were considered appropriate and in
accordance with the information and explanations given to me, I report
as under :
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) As explained to me, the fixed assets have been physically verified
by the Management at reasonable intervals, during the financial year.
According to the information and explanations given to me, no
discrepancies were noticed on physical verification of the fixed
(ii) 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.
(iii) In my opinion and according to the information and explanations
given to me, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchases of fixed assets. The Company is a Core Investment Company and
does not sell any goods or services. During the course of my audit I
have not observed any continuing failure to correct major weaknesses in
internal control system.
(iv) The Company has not accepted deposits from the public within the
meaning of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013, and the rules framed, thereunder.
(v) The Central Government has not prescribed maintenance of cost
records under Section 148 (1) of the Companies Act, 2013 for the
business in which the Company is engaged.
(vi) (a) According to the records of the Company, the Company is
regular in depositing with appropriate authorities,
undisputed statutory dues including income tax, other taxes, cess and
statutory dues applicable to it. As explained to me by the Management,
the provisions of the Employees'' State Insurance Act, 1948 and the
Employees'' Provident Fund and Miscellaneous Provisions Act 1952 and
other indirect taxes do not apply to the Company. According to the
information and explanations given to me, no undisputed amounts payable
in respect of income tax, other taxes, cess and statutory dues
applicable to it were outstanding as at 31st March, 2015 for a period
of more than six months from the date those became payable.
(b) According to the records of the Company, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs or Duty
of Excise, Value Added Tax, Cess which have not been deposited on
account of any dispute.
(c) According to the records of the Company, there are no dues which
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 thereunder.
(vii) The Company does not have any accumulated losses as at 31st
March, 2015. The Company has not incurred any cash loss during the
financial year covered by this report and also in the preceding
(viii) The Company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders.
(ix) The terms and conditions of the guarantees given by the Company in
respect of the loans borrowed by others from banks or financial
institutions are not found prima facie prejudicial to the interest of
(x) Based upon the audit procedures performed and having regard to the
information and explanations given by the Management, I report that no
fraud on or by the Company has been noticed or reported during the
course of my audit.
(xi) Provisions of sub-clause Nos. (ii) and (xi) of Clause 3 of the
said Order do not apply to the Company.
P. V. Deo
Place : Pune Chartered Accountant
Date : 21st May, 2015 Membership No.41609