We have audited the accompanying financial statements of Shri Keshav
Cements & Infra Limited (formerly known as Katwa Udyog Ltd) (''the
company'') which comprise the Balance Sheet as at 31st March 2014 and
the Statement of Profit & Loss and Cash Flow Statement for the year
then ended and a summary of significant accounting policies and other
explanatory information. The Company has changed the name from Katwa
Udyog Limited to Shri Keshav Cements and Infra Limited vide Registrar
of Companies Bangalore Certificate dated: 07-11 -2007. The change in
name is intimated to all the State and Central Government Departments
and the change of name is confirmed. The change of name is also
intimated to BSE-Mumbai the approval is still under their
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 and
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.
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 required 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 misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments, the
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
We believe that audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31s'' March, 2014
ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date
iii) In the case of the Cash Flow Statement, of the 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, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
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
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
c) The Balance Sheet and the Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d) In our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956.
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 is 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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956, nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the company.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF SHRI KESHAV CEMENTS &
INFRA LIMITED (FORMERLY KNOWN AS KATWA UDYOG LTD) REFERRED TO IN
PARAGRAPH 1 OF OUR REPORT OF EVEN DATE:
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets. The
fixed assets are physically verified by the management in a phased
manner, over a period of three years, which in our opinion is
reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification.
There was no substantial disposal of fixed assets during the year.
During the year Company has purchased additional machinery and spares
for Plant-I for an amount to Rs. 1,45,17,974/- Plant-II Rs.
1,85,00,794/- including capitalization after deducting Modvat Credit of
2) Physical verification of inventory has been conducted at reasonable
intervals by the management. In our opinion, 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 its
business. The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification as compared to book
records, which were not material, have been properly dealt with in the
books of accounts.
3) a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan from Directors covered in the
register maintained under Section 301 of the Companies Act, 1956. The
number of parties are 5 and the yearend balance of such loan taken was
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
4) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company & nature of its business, for the
purchases of inventory and fixed assets and for sale of goods. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
5) a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) In our opinion & according to the information & explanations given
to us, the Company has accepted deposits, by issuing SILA and it has
complied with the provisions of sec. 58A, 58AA of the Companies Act,
1956 and the Company''s (Acceptance of the Deposits) Rules, 1975 with
regard to the deposit accepted. During the year the Company has
refunded entire deposits with interest up to date. Hence, there are no
public deposits at the year end. No adverse order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, the Company has
appointed a Chartered Accountant as an Internal Auditors and regularly
carried out the Internal Audit.
8) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Sec.209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We are, however, not
required to make a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Service Tax, Excise duty, cess and
other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Service Tax, Custom duty,
Excise duty and cess were in arrears as at 31.03.2014 for a period of
more than six months from the date they became payable.
c) According to the information & explanation give to us, there are no
dues of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty,
Excise duty or Cess which have not been deposited on account of any
10) The Company does not have any accumulated losses. It has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11) Based on our audit procedures and as per the information &
explanation given by the management, the company has not defaulted in
repayment of dues to financial Institution or Banks.
12) As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) In our opinion, the Company is not chit fund or a nidhi/mutual
benefit fund/societies. Therefore, the provisions of clause 4(xiii) of
the Order, are not applicable to the Company.
14) Since the Company is not dealing or trading in shares, securities,
debentures and other investment, clause (xiv) of the Order is not
15) The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purposes for which
they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used to finance long term
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19) During the period covered by our audit report, the Company has not
issued any debentures.
20) The company has not raised any money from public issue during the
21) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the management.
Place: Belgaum C.A. Prabhakar K. Latkan
Dated: 30-05-2014 Chartered Accountant
M No. 200/21730
1083, Ananthashayan galli,