TO THE MEMBERS OF KEC International Limited
REPORT ON THE STANDALONE INDIAN ACCOUNTING STANDARDS (IND AS) FINANCIAL STATEMENTS
1. We have audited the accompanying standalone Ind AS financial statements of KECInternational Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation in which are incorporated 20 jointly controlled operations as referred to inNote 42 in the standalone financial statements and the Returns for the year ended on thatdate of the Companys branches located at Abu Dhabi Afghanistan AlgeriaBangladesh Egypt Ethiopia Georgia Ghana Indonesia Ivory Coast Jordan Kenya LaosLebanon Libya Malaysia(2) Mozambique Nepal(2) Nigeria Oman Philippines SenegalSouth Africa Sri Lanka Tanzania Thailand Tunisia Uganda Zambia Bhutan CameroonCongo Kazakhstan and Kuwait.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS
2. The Companys Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS financial statements to give a true and fair viewof the financial position financial performance (including other comprehensive income)cash fiows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified in the Companies (Indian Accounting Standards) Rules 2015 (as amended) underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.
5. We conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards and pronouncements require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Companys preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriatein the circumstances. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its total comprehensive income (comprising of profit andother comprehensive income) its cash fiows and the changes in equity for the year endedon that date.
9. We did not audit the Ind AS financial statements/financial information of 31branches and 20 jointly controlled operations included in the standalone Ind AS financialstatements of the Company which constitute total assets of ` 264326.05 lakh and netassets of ` 49969.53 lakh as at March 31 2018 total revenue of ` 219863.71 lakh andnet cash fiows amounting to (` 1355.44 lakh) for the year then ended. These financialstatements/financial information have been audited by other auditors whose reports havebeen furnished to us and our opinion on the standalone Ind AS financial statements to theextent they have been derived from such financial statements/ financial information isbased solely on the report of such other auditors.
10. The Ind AS financial statements of the Company for the year ended March 31 2017were audited by another firm of chartered accountants under the Companies Act 2013 whovide their report dated May 19 2017 expressed an unmodified opinion on those financialstatements.
Our opinion is not qualified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
11. As required by the Companies (Auditors Report) Order 2016 issued by theCentral Government of India in terms of subsection (11) of section 143 of the Act("the Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure B a statement on the matters specified in paragraphs3 and 4 of the Order.
12. 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 bestof 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 theCompany so far as it appears from our examination of those books and the reports of theother auditors for the branches not audited by us and proper returns adequate for thepurposes of our audit have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company audited underSection 143 (8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.
(d) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account and with the returns received from thebranches not visited by us.
(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act.
(f) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors of the Company none of the directorsare disqualified as on March 31 2018 from being appointed as a director in terms ofSection 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure A.
(h) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:
i. The Company has disclosed the impact if any of pending litigations as at March 312018 on its financial position in its standalone Ind AS financial statements ReferNote 49;
ii. The Company has made provision as at March 31 2018 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts - Refer Note 29. Further the Company did not have any materialforeseeable losses on derivative contracts as at March 31 2018.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312018.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2018.
|For Price Waterhouse Chartered Accountants LLP || |
|Firm Registration Number: 012754N/N500016 || |
| ||Chartered Accountants |
| ||Sarah George |
|Place: Mumbai ||Partner |
|Date: May 14 2018 ||Membership Number: 045255 |