TO THE MEMBERS OF,
KUSHAL LIMITED,
AHMEDABAD
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of KUSHAL LIMITED
(‘the Company") which comprise the Balance Sheet as at March 31, 2021, the
Statement of Profit and Loss (including Other Comprehensive Income, if any), the Cash flow
statement and the Statement of Changes in Equity for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Ind AS 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
and presentation of these 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) specified
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
andotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsand
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 Ind AS financial statements that give 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 Ind AS 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 there under.
We conducted our audit of the Ind AS financial statements 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 Ind AS financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Ind AS financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of
the Ind AS 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 Ind AS financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances. 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, aforesaid Ind AS financial statements give the information required by the
Act in the manners or equired 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 31stMarch,2021, and its profit including other comprehensive income, its
cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order") issued by the Central Government of India, in terms of Section 143(11) of the
Act, we give in the "Annexure A", a statement on the matters specified in
paragraphs 3 and 4 of the Order.
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 those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive
income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed 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 31stMarch,
2021 and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2021 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" to this report;
(g) 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, as amended, 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 litigation on its financial position
in its Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. During the year, there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
For S. V. Sojitra & Co.
Chartered Accountant
(Sanjay V. Sojitra)
Proprietor
Membership No. 135239
FRN NO. 139013W
Place : Ahmedabad
Date : June 29,2021
ANNEXURE A
TO THE INDEPENDENT AUDITOR’S REPORT ON THE INDAS FINANCIAL STATEMENTS OF KUSHAL
LIMITED
(Referred in paragraph 1, under "Report on Other Legal and Regulatory
Requirements" of our report of even date)
(i) (a) The company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at reasonable
intervals and no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) As explained to us, management has conducted physical verification of inventory at
reasonable intervals during the year and no material discrepancies were noticed on such
physical verification.
(iii) The company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013.
As the company has not granted any loans, secured or unsecured to companies, firms,
Limited
LiabilityPartnershipsorotherpartiescoveredintheregistermaintainedundersection189ofthe
Companies Act, 2013, following points are not applicable incidental to that.
(a) Whether the terms and conditions of the grant of such loans are not prejudicial to
the company’s interest;
(b) Whether the schedule of repayment of principal and payment of interest has been
stipulated and whether the repayments or receipts are regular;
(c) if the amount is overdue, state the total amount overdue for more than ninety days,
and whether reasonable steps have been taken by the company for recovery of the principal
and interest;
(iv) In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of section 185 and 186 of the Companies Act, 2013
in respect of grant of loans, making investments and providing securities and guarantees.
(v) TheCompanyhasnotacceptedanydepositswithinthemeaningofSections73to76oftheActand the
Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions
of clause 3(v) of the Order are not applicable to the Company.
(vi) Maintenance of cost records specified by the central government under section
148(1) of the Companies Act, 2013 is not applicable to the company.
(vii) (a) According to the records of the company, undisputed statutory dues including
Provident Fund, Employees’ State Insurance, Income Tax, Sales tax, Goods and Services
Tax, Service Tax,
CustomsDuty,ExciseDuty,ValueAddedTax,Cessandothermaterialstatutorydueshavebeen regularly
deposited with the appropriate authorities. No undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2021 for a period of more than six
months from the date of becoming payable.
(b) According to information and explanation given to us, there are no disputed amounts
payable inrespectofprovidentfund,salestax,GoodsandServicesTaxorservicetaxordutyofcustoms
or duty of excise or value added tax and other statutory dues were outstanding, at the
year end, for the period of more than six months from the date they become payable.
(c) Details of dues of income tax which have not been deposited on March 31,2021 on
account of disputes as follows:
| Name of the statue |
Nature Of Dues |
Amount (in Lakh) |
Period to which the amount relates(AY) |
Forum where dispute is pending |
| Income Tax Act,1961 |
Income Tax |
18.30 |
2007-08 |
Applied for Vivad Se Vishwas Scheme |
| Income Tax Act,1961 |
Income Tax |
1.37 |
2008-09 |
Response awaited from CPC to the clarifications submitted. |
| Income Tax Act,1961 |
Income Tax |
2.46 |
2009-10 |
Applied for Vivad Se Vishwas Scheme |
| Income Tax Act,1961 |
Income Tax |
82.84 |
2010-11 |
Applied for Vivad Se Vishwas Scheme |
| Income Tax Act,1961 |
Income Tax |
371.25 |
2012-13 |
Appeal pending with CIT(A). |
| Income Tax Act,1961 |
Income Tax |
0.30 |
2013-14 |
Response awaited from CPC to the clarifications submitted. |
| Income Tax Act,1961 |
Income Tax |
120.64 |
2016-17 |
Response awaited from CPC to the clarifications submitted. |
Income Tax Department and Goods and Service Tax Departments carried out search at
Registered Office of the company. Investigation Proceedings for both the departments are
not yet concluded.
(viii) In our opinion and according to the information and explanation given to us, the
company has not defaulted in repayment of loans or borrowing to a financial institution,
bank, Government or dues to debenture holders.
(ix) According to information and explanation given to us, the company has not raised
money by way of initial
publicofferorfurtherpublicoffer(includingdebtinstruments).Moreoverthecompanyhasnot taken
term loans during the year.
(x) There is no fraud by the company or any fraud on the Company by its officers or
employees has been noticed or reported during the year.
(xi) According to information and explanation given to us, the managerial remuneration
has been paid/
providedinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197read with
Schedule V to the Companies Act,2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of
paragraph 3 of the Order is not applicable.
(xiii)
Alltransactionswiththerelatedpartiesareincompliancewithsections177and188ofCompanies Act,
2013 and the details have been disclosed in the Ind AS Financial Statements, as required
by the applicable Indian Accounting Standards.
(xiv) The company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year under review hence,
reporting requirements under clause (xiv) of paragraph 3 of the Order is not applicable to
the Company.
(xv) According to information and explanation given to us, the company has not entered
into any noncash transactions with directors or persons connected with him as referred to
in section 192 of Companies Act, 2013 and hence reporting under clause (xv) of paragraph 3
of the Order is not applicable to the company.
(xvi)
Accordingtotheinformationandexplanationsprovidedtous,theprovisionsofsection45-IAof the
Reserve Bank of India Act, 1934 is not applicable to the Company.
ANNEXURE B
TO THE INDEPENDENT AUDITOR’SREPORTONTHEINDAS FINANCIAL STATEMENTS OF KUSHAL
LIMITED
(Referred in paragraph 2(f) under "Report on Other Legal and Regulatory
Requirements" of our report of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KUSHAL
LIMITED ("the Company") as of 31stMarch 2021 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal
financial controls based on the internal financial controls over financial reporting
criteria established by the Company considering the essential components of internal
financial controls stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting ("the Guidance Note") issued by the Institute of
Chartered Accountants of India (‘ICAI’)". 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 company’s 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 as specified under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, 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.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternal
financial controls 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
evaluatingthedesignandoperatingeffectivenessofinternalfinancialcontrolsbasedontheassessed
riskTheproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisks
ofmaterialmisstatementoftheIndASfinancialstatements,whetherduetofraudorerror.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial controls over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial controls over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2)provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and;
(3) provide reasonable assurance
regardingpreventionortimelydetectionofunauthorisedacquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial controls
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
over financial reporting
andsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31s,March
2021, based on the internal financial controls over financial reporting criteria
established by the Company considering the essential components of internal financial
controls stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India.
For S. V. Sojitra & Co.
Chartered Accountant
(Sanjay V. Sojitra)
Proprietor
Membership No. 135239
FRN NO. 139013W
Place : Ahmedabad
Date : June 29,2021
+91-9892691696
