TO THE MEMBERS OF KUMAKA INDUSTRIES LIMITED MUMBAI
CIN : - U99999MH1973PLC016315
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of KUMAKA
INDUSTRIES LIMITED (‘the Company), which comprise the Balance Sheet as at 3 1 March
2023, the Statement of Profit and Loss (including other comprehensive income), the
Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and
a summary of the significant accounting policies and other explanatory information (herein
after referred to as "Standalone Ind AS Financial Statements").
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, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with * , the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, ("Ind AS") and other accounting principles generally accepted in
India, of the state of affairs of the Compan> as at 31st March, 2023 the
loss and total comprehensive income, changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing specified undersectionl43 (10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the independent
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide the basis for our audit opinion on the
standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significant in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined that there are no key audit matters
to communicate in our report.
Information Other than the Standalone Ind AS Financial Statements and Auditors Report
Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance inclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys 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 Ind 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 accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act read with relevant rules issued thereunder.
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 Ind
AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Companys financial reporting
process. Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of user
as taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional Skepticism throughout the audit.
We also Identify and assess the risks of material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the over-ride of
internal control.
Obtain an understanding of internal financial controls relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under
sectionl43(3)(i)of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonable ness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the Standalone Ind AS Financial
Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of areas
on ably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with the
relationships and other matters that may reasonably be thought to be on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters m
our auditors report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doings would reasonably be
expected to outweigh the public interest benefits of such communication.
Emphasis of matters
1. During the year under Report, the company has paid Rs. 5001250/- towards Land
Revenue in respect of past years which are charged to statement of Profit and Loss.
2. The company is required to file PAS-6 regarding reconciliation of share capital and
Audit Report for half year as on 30th September 2022 which does not seem to
have been complied till date. However PAS-6 for half year as on 31st March,
2023 is filed by the Company.
3. The company is required to file half yearly Return for outstanding payments to Micro
Small and medium Enterprises (MSME) which does not seem to have been complied till date.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, we report that:
1. As required by the Companies (Auditors Report) Order, 2020 ("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", a statement of 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 appears from our examination of those books.
c) the balance sheet, the statement of profit and loss, the statement of cash flows and
the statement of changes in equity dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with relevant rules
issued there under;
e) on the basis of the written representations received from the directors as on 31st
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2023 from being appointed as a director in terms of Section
164 (2) 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".
g) With respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 and to the best of our
information and according to the explanations given to us: -
a. The Company has disclosed the impact of pending litigations on its financial
position in its standalone Ind AS financial statements - Refer Note-1 (21) to the
financial statements.
b. The Company does not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company during the year ended 31st
March, 2023.
For M B MAJMUDAR & CO.,
CHARTERED ACCOUNTANTS Firm Registration No: 105884W
vipul H. Yadav PARTNER
Membership No: 179305
UDIN No: - 23179305BGWQRT5798
PLACE: VADODARA DATED; +
Annexure "A" to the Independent Auditors Report
(As Per Para 3 and 4 of the Companies Auditors Report order 2020)
The Annexure referred to in our Independent Auditors Report to the members of the
company on the standalone Ind AS financial statements for the year ended 31st
March 2023, we report that: -
3. (i) (a) (A) company is maintaining proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment;
(B) There are no Intangible Assets held by the Company, hence this clause is not
applicable.
(b) Property, Plant and Equipment have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such verification and
hence this clause is not applicable.
(c) Title deeds of all the immovable properties are disclosed in the financial
statements held in the name of the company.
(d) Company has not revalued its Property, Plant and Equipment; hence this clause is
not applicable.
(e) As per the information given to us, no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988(45 of 1988) and rules made there under, and hence this clause is
not applicable.
(ii) (a) As there is no inventory, the Company has not conducted physical verification
of inventory and hence this clause is not applicable.
(b) Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets; hence the quarterly returns or statements are not required to be filed by
the company with such banks or financial institutions.
(iii) Company has not made investments in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies,
firms, Limited Liability Partnerships or any other parties during the year under report.
(a) The Company had granted unsecured loans during the past years to (i) former
subsidiary company against which Rs. 97614972.92 are outstanding as at 31st
March, 2023 and (ii) unsecured loan to a partnership firm wherein relatives of a director
are partners and Rs. 51553377.08 are outstanding from the said partnership Firm. Provision
for doubtful debts amounting to Rs. 149168350.00 is made for the said two loans in the
accounts in earlier year.
As per the explanation given by the company, because of the stringent financial
condition of the former subsidiary company and of the partnership firm, the company has
neither charged nor received any interest. In our opinion, the terms and conditions are
prejudicial to the interest of the company. Scope of recovery are also remote. There is
neither recovery of principal amount nor interest during the year. No steps for recovery
of principal amount and interest have been taken by the company during the year.
(A) The aggregate amount during the year, and balance outstanding at the Balance Sheet
date with respect to such loans or advances and guarantees or security to subsidiaries,
joint ventures and associates are Rs. NIL.
(B) The aggregate amount during the year, and balance outstanding at the Balance Sheet
date with respect to such loans or advances and guarantees or security to parties other
than subsidiaries, joint ventures and associates are Rs. 149168350/-.
(b) As mentioned in clause iii(a) above, the terms and conditions of unsecured loans
are prejudicial to the interest of the company;
(c) As mentioned in clause iii(a) above, there is neither recovery of principal amount
not interest there on in respect of unsecured loans.
(d) As mentioned in clause iii(a) above, no steps for recovery of principal amount and
interest have been taken by the company during the year.
(e) such instances are not observed;
(f) such Transactions are not observed during the year.
(iv) In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of section 186 of the Companies Act, 2023 in
respect of loans given. The Company has not granted any loans or made any investments or
provided any guarantees or security to the parties covered under Section 185 of the Act
during the year. However in the past years, the company has given unsecured loan and had
acquired equity shares in former subsidiary company in which the key managerial personnel
are directors and has given advance in the past years to a Partnership firm in which
relatives of a director are partners within the meaning of section 185 and 186 of the
Companies Act 2013.
(v) In respect of deposits accepted, In our opinion and according to the information
and explanations given to us, the company has not accepted any deposits from the public
and that the company has accepted unsecured loans/ deposits from the directors and their
relatives/shareholders as at 31st March 2023 and the provisions of section 73 to 76 of the
Act and the Rules framed there under are not applicable, We are informed by the Management
that no order has been passed by the Company Law Board, National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal.
(vi) Company is not required to maintain cost records as specified by the Central
Government under sub-section (1) of section 148 of the Companies Act, 2013 as the Turnover
of the Company has not exceeded the prescribed limit.
(vii) (a) Company is regular in depositing undisputed statutory dues including Goods
and Services Tax, provident fund, employees state insurance, duty of customs, duty of
excise, cess and any other statutory dues to the appropriate authorities. However thereare
following arrears of outstanding statutory dues as at 31st March, 2023 for the
period of more than six months from the date they became payable.
(b) according to the information and explanations given to us and the record of the
company examined by us, there are no dues in respect of goods and service tax, excise
duty, custom duty and cess as at 31st March, 2023 which have not been deposited
on account of any dispute. The particulars of dues of Income Tax as at 31st
March, 2023 which has not been deposited is as under: -
Nature of Dues |
Amount (Rs.) |
Period to which amount related |
Forum where the dispute is pending |
Income Tax |
30,51,500 |
AY 2012-13 |
Dy. Commissioner of Income Tax |
Income Tax |
4,030 |
AY 2014-15 |
Asst. Unit Income Tax Dept. |
Income Tax |
96,496 |
FY 2012-13 to FY 2017-18. |
ITO TDS-1, Income tax Dept Vadodara |
We are informed that the application for rectification has been filed by the company on
15-04-2015 with the dy. Commissioner of Income Tax, Mumbai. However, there is no response
to the said application from the Income Tax Department till date.
(viii) The instances of transactions surrendered or disclosed as income are not
observed during the year under report, and hence this clause is not applicable.
(ix) (a) Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender, and hence this clause is not applicable.
(b) Company is not declared willful defaulter by any bank or financial institution or
other lender;
(c) As there are no loans obtained during the year, this clause is not applicable.
(d) Such instances are not observed;
(e) Such instances are not observed;
(f) Such instances are not observed;
(x) (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year and hence the details there of
are not applicable. However, In respect of the public issue of equity shares in the past
years, in compliance to Honourable NCLAT, Delhis Order dated 20th Oct, 2020, the company
has passed required entries in the books of account during the year ended 31st March,
2022.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year and
hence the details there of are not applicable.
(xi) (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or no fraud on the company has been noticed or
reported during the year.
(b) In view of the answer to item (xi)(a) above, this clause is not applicable.
(c) In view of the answer to item (xi)(a) above, this clause is not applicable.
(xii) (a) The Company is not a Nidhi Company and hence this clause is not applicable.
(b) The Company is not a Nidhi Company and hence this clause is not applicable.
(c) The Company is not a Nidhi Company and hence this clause is not applicable.
(xiii) Instances of transactions with the related parties as referred in section 188
and 177 of the Companies Act, 2013, are as disclosed in Note No. (13A) (Unsecured loans)
and notes to account Note No. 1(26)(B) of the Balance Sheet as at 31st March 2023.
(xiv) (a) The Internal Audit is not applicable during the year under Report as the
requirement of rule 13 of Companies (Accounts) Rule 2014 are not applicable.
(b) In view of the answer to item (xiv)(a) above, this clause is not applicable.
(xv) The company has not entered into any non-cash transactions with directors or
persons connected with them during the year under report.
(xvi) (a) The company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934 (2 of 1934).
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities during the year under report.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
(d) This Clause is not applicable.
(xvii) The company has incurred cash loss in the financial year ended 31st
March, 2023 and cash profit in the immediately preceding financial year.
(xviii) There is no resignation of the statutory auditors during the year. However, the
previous statutory auditors had expressed regret to give their consent to accept
reappointment as statutory auditors after completion of term of five years during the
financial year 2022-23.
(xix) on the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, in our opinion, no material uncertainty exists as on the date of the audit report
that company is capable of meeting its liabilities existing at the date of Balance Sheet
as and when they fall due within a period of one year from the Balance Sheet date.
(xx) (a) As the provisions of section 135 of the Companies Act, 2013 and the monetary
criteria regarding CSR requirement are not applicable, this clause is not applicable.
(b) In view of the answer to clause (xx)(a) above, this clause is not applicable;
(xxi) As there are no subsidiary and/ or Associate companies and as there are no
consolidated financial statements, this clause is not applicable.
4. Reasons for unfavorable /qualified answers:-
The reasons for items 3 (iii)(a),(A),(B) and(b) to (d) have already been mentioned
against the respective items.
For M B MAJMUDAR & CO., CHARTERED ACCOUNTANTS Firm Registration No: 105884W
Vipul H. Yadav PARTNER
Membership No: 179305
UDIN No: 23179305BGWQRT5798
PLACE:- VADODARA DATED:- , 0.603
Annexure "B" to the Independent Auditors Report of even date on the
Standalone Financial Statements of Kumaka Industries Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Kumaka
Industries Limited ("the Company") as of March 31, 2023 in connection with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India". 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 companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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, to the extent applicable to
an audit of internal financial controls, both issued by the Institute of Chartered
Accountants of India. 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 control based on the assessed risk. 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.
We believe that the audit evidence We have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
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 March 31, 2023 based on
"the internal control over financial reporting criteria established by the company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountant of India..
For M B MAJMUDAR & CO.,
CHARTERED ACCOUNTANTS Firm Registration No: 105884W
Vipul H. Yadav PARTNER
Membership No: 179305
UDIN No: 23179305BGWQRT5798
PLACE VADODARA
DATED :- , 31st March 2023
+91-9892691696
