मैट्रिक्स
 
 
moneycontrol.com भारत | लेखा परीक्षकों की रिपोर्ट > Transport & Logistics > लेखा परीक्षकों की रिपोर्ट से किंगफिशर एयरलाइंस - बीएसई: 532747, NSE: KFA

किंगफिशर एयरलाइंस

बीएसई: 532747  |  NSE: KFA  |  ISIN: INE438H01019  |  Transport & Logistics

खोजें किंगफिशर एयरलाइंस कनेक्शन Mar 12
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '13
Report on the Financial Statements:
 
 We have audited the accompanying financial statements of Kingfisher
 Airlines Limited (formerly known as Deccan Aviation Limited) (the
 Company) which comprises of Balance Sheet as at March 31, 2013, the
 Statement of Profit and Loss and Cash Flow Statement for the year ended
 on that date and a summary of significant accounting policies and other
 explanatory information.
 
 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,
 financial performance and cash flows 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 fair presentation of the financial statements
 that are free from material misstatement, whether due to fraud or
 error.
 
 Auditor''s Responsibility:
 
 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 require 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 misstatement of the financial statements, whether
 due to fraud or error. In making those risk assessments, the auditor
 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
 statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our qualified audit opinion.
 
 Basis for Qualified Opinion:
 
 1. Attention is invited to note 48 forming part of the Financial
 Statements (Notes'') regarding method of accounting of costs incurred
 on major repairs and maintenance of engines of aircrafts taken on
 operating lease of Rs. 664.22 lacs (year ended March 31, 2012 Rs.
 28,480.24 lacs) (aggregate expenditure up to March 31, 2013 after
 eliminating expenditure on returned/redelivered assets Rs.25,020.97
 lacs), which have been capitalized and amortized over the estimated
 useful life of the repairs. In our opinion, this treatment is not in
 accordance with generally accepted accounting standards prevalent in
 India and ought to have been recognized in the Statement of Profit and
 Loss as and when incurred.
 
 2.  We further report that, except for the effect, if any, of matters
 stated in paragraphs 3 and 4 below, which are not ascertainable, had
 the observations made in paragraph 1 above and paragraphs 4 and 10 of
 our report to the members of the Company on the audit of the financial
 statements for the year ended March 31, 2012, dated May 30, 2012
 (Previous year''s Report) been considered,
 
 a.  The working results for the year ended March 31, 2013 would have
 been a loss of Rs. 415,801.51 lacs (year ended March 31, 2012 Rs.
 344,402.41 lacs) as against the reported loss of Rs. 430,111.96 lacs
 (year ended March 31, 2012 Rs. 232,800.75 lacs). This does not take
 into account the derecognition of deferred tax credit recognized up to
 March 31, 2012 of Rs. 404,586.77 lacs during the year which should have
 been done through the Statement of Profit and Loss and not directly in
 the Surplus account (debit) included under the head Reserves and
 Surplus'' in the balance sheet
 
 b.  The reserves and surplus as at March 31, 2013 would have been debit
 of Rs. 1,434,042.48 lacs (as at March 31, 2012 debit of Rs.
 1,046,090.41 lacs) as against the reported figure of debit of Rs.
 1,428,164.15 lacs (as at March 31, 2012 debit of Rs 621,314.83 lacs),
 other current liabilities as at March 31, 2012 would have been Rs
 325,183.68 lacs as against the reported figure of Rs 325,171.29 lacs,
 fixed assets as at March 31, 2013 would have been Rs. 65,314.71 lacs
 (as at March 31, 2012 Rs 124,126.34 lacs) as against the reported
 figure of Rs. 71,193.04 lacs (as at March 31, 2012 Rs 144,302.75 lacs)
 and deferred tax asset as at March 31, 2012 would have been Rs. Nil as
 against the reported figure of Rs. 404,586.77 lacs.
 
 c.  The earnings (loss) per share for the year ended March 31, 2013
 would have been Rs. (54.42) (year ended March 31, 2012 Rs. (68.92) as
 against the reported earnings (loss) per share of Rs. (56.27) (year
 ended March 31, 2012- Rs. (46.92)).
 
 3.  Attention is invited to paragraph 1 of the annexure to our report
 (impact of discrepancies, if any pending reconciliation of physical
 inventory of fixed assets taken during the year 2010-11 with book
 records), note 34 of the Notes (borrowing costs that may have to be
 decapitalized consequent to temporary suspension of work of supply of
 aircrafts in terms of AS 16), note 44 (certain accounts detailed in the
 said note being under review and reconciliation), note 46 (basis of
 computation of unearned revenue as at period end/refunds due on account
 of cancelled tickets/flights. Such estimates of number of unflown
 tickets and their average value,
 
 based on which management has reportedly estimated the amount of
 unearned revenue/ refunds due, not being drawn from accounting records,
 could not be reviewed by us), note 49 (use fees/ hourly and cyclic
 utilization charges payable by the Company in respect of certain assets
 taken on operating lease being treated as maintenance reserves, pending
 formalization of the matter with the relevant lessor), note 52 (write
 back of withholding tax accrued till March 31, 2011 and non provision
 for withholding tax thereafter, on amounts paid/ provided as payable to
 certain non residents/interest thereon, based on professional advice,
 which are subject to receipt of certain documentation from the relevant
 payees, the Company complying with the requisite formalities under the
 relevant tax laws and validation of the position stated in the books of
 account), note 53 regarding not writing off of unamortized borrowings
 costs of Rs. 3,021.78 lacs although the consortium banks have recalled
 their dues, for reasons stated in the note, note 56 regarding
 compensation and other costs payable by the Company consequent to
 termination of certain agreements not being determined and accordingly
 not provided for and foot note to note 17 regarding adhoc provision of
 Rs. 2,000.00 lacs made during the year (aggregate provision as at March
 31, 2013 Rs. 2,634.71 lacs) for unserviceable/damaged engineering and
 in-flight inventories, pending detailed review and assessment (effect
 on revenue in all cases is not ascertainable).
 
 4. Management has informed us that the recoverable amount'' of assets
 within the meaning of accounting standard 28 is more than their
 carrying value and as such no amount needs to be recognized in the
 financial statements for impairment loss. We have not been able to
 validate this assertion in the absence of bids from prospective
 buyers/valuation report of an independent agency and the uncertainty of
 resumption of future operations/results of operations thereafter.
 
 Qualified Opinion:
 
 In our opinion and to the best of our knowledge and according to the
 information and explanations given to us, except for the effects of the
 matters described in paragraphs 1 to 4 of the Basis for Qualified
 Opinion paragraph, the said 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.
 
 i. In the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 2013,
 
 ii. In the case of Statement of Profit and Loss, of the loss for the
 year ended on that date and
 
 iii. In the case of Cash Flow statement, of the cash flows for the year
 ended on that date.
 
 Emphasis of Matter:
 
 Attention is invited to note 45 to the Notes regarding the financial
 statements being prepared on a going concern basis, notwithstanding the
 fact that the Company''s net worth is eroded (Net worth as at March 31,
 2013 (Rs.1,291,981.85 lacs), the scheduled air operator''s permit issued
 by the Director General of Civil Aviation, Government of India (Permit)
 has lapsed and the consortium banks have recalled their debts to the
 Company. These events cast significant doubt on the ability of the
 Company to continue as a going concern. The appropriateness of the said
 basis is interalia dependent on the Company''s ability to obtain renewal
 of the Permit, infuse requisite funds for meeting its obligations
 (including statutory liabilities and those in respect of contracts
 entered into for purchase of goods and assets), rescheduling of debt/
 other liabilities and resuming normal operations. Our opinion is not
 modified in this respect.
 
 Report on Other Legal and Regulatory Requirements:
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003 (the
 Order) 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 Order.
 
 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
 audit.
 
 b.  In our opinion, the Company has kept proper books of account as
 required by law so far as appears from our examination of those books.
 
 c.  The Balance Sheet, Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account.
 
 d.  In our opinion, except for the effects of matters described in
 paragraph 1 of the Basis for Qualified Opinion paragraph, the Balance
 Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by
 this report, comply in all material respects, with the mandatory
 Accounting Standards referred to in sub- section (3C) of section 211 of
 the Act.
 
 e.  On the basis of written representations received from Directors as
 on March 31, 2013 and taken on record by the Board of Directors, we
 report that none of the Directors of the Company, are disqualified as
 on that date from being appointed as a director, under clause (g) of
 sub-section (1) of section 274 of the Act.
 
 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 Act
 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.
 
 (AS REFERRED TO IN PARAGRAPH 1 OF PARA ON REPORT ON OTHER LEGAL AND
 REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF
 KINGFISHER AIRLINES LIMITED)
 
 1.  a.  The Company has maintained records showing full particulars
 including quantitative details and situation of fixed assets. However,
 comprehensive description of assets and current location are to be
 incorporated in the asset records after completion of reconciliation
 referred to in paragraph 1(b) below.
 
 b.  Fixed assets were physically verified by the management during the
 year 2010-11. Pending completion of reconciliation which has not been
 completed, discrepancies, if any, cannot be ascertained (refer note 51
 of the Notes). Certain assets of the Company are in the custody of
 airports to which it has no access (carrying value not
 ascertained)(refer foot note 4 to note 13 of the Notes)
 
 c.  There was no substantial disposal of fixed assets during the year.
 
 2.  a.  Management has conducted physical verification of inventory at
 reasonable intervals during the year.
 
 b.  The procedures of physical verification of inventories followed by
 the management are reasonable and adequate in relation to the size of
 the Company and the nature of its business.
 
 c.  Pending updating of records and reconciliation, book balances as at
 March 31, 2013 have been adopted.
 
 3.  a.  As informed, the Company has not granted any loans, secured or
 unsecured to companies, firms or other parties covered in the register
 maintained under section 301 of the Act.
 
 b. As informed, the Company has taken loans from two companies covered
 in the register maintained under section 301 of the Act. The total loan
 amount outstanding as at year end was Rs. 49,004.26 lacs and the
 maximum amount outstanding at any time during the year was the same
 amount. The rate of interest and terms and conditions on which the said
 loans are taken is not prima-facie prejudicial to the interests of the
 Company. No stipulations for repayment have been prescribed and as such
 no comments regarding regularity of payments are being made.
 
 4.  In our opinion and according to the information and explanation
 given to us, and taking into consideration management''s representation
 that a large number of items purchased are of a special nature for
 which alternative quotations cannot be obtained, there are adequate
 internal control procedures commensurate with the size of the Company
 and the nature of its business for the purchases of inventory. Internal
 controls in respect of sale of services to be strengthened. Subject to
 our observations in paragraph 1(b) above and note 46 of the Notes,
 during the course of our audit, no continuing failure to correct major
 weakness in internal controls has been noticed.
 
 5.  a.  According to the information and explanations given to us, we
 are of the opinion that transactions that need to be entered into the
 register maintained under section 301 of the Act have been so entered.
 
 b. Further, contracts or arrangements referred to in section 301 of the
 Act and aggregating to Rs. 5.00 lacs or more per party have been
 entered into at prices which are reasonable as compared to similar
 services rendered to / by other parties except in respect of
 advertisement & sales promotional expenses of Rs. 38.19 lacs, purchases
 of goods of Rs. 0.10 lacs, and miscellaneous income of Rs. 9.19 lacs
 where we are unable to make any comments on reasonability of rates
 since there were no similar transactions with third parties at the
 relevant time.
 
 6.  The Company has not accepted any deposits from the public.
 
 7.  The Company has an internal audit system commensurate with its size
 and nature of its business.
 
 8.  To the best of our knowledge and as explained, the Central
 Government has not prescribed the maintenance of cost records under
 section 209 (1) (d) of the Act for the products of the Company.
 
 9.  a.  Undisputed statutory dues in respect of service tax,
 withholding taxes, fringe benefit tax dues and professional tax have
 not been regularly deposited with the appropriate authorities.
 Undisputed statutory dues in respect of provident fund, employees''
 state insurance, investor education and protection fund, wealth tax,
 customs, excise duty, cess as applicable, have generally been regularly
 deposited with the appropriate authorities barring delays in certain
 months.
 
 b. According to the information and explanations given to us:-
 
 (i) No amounts were outstanding as at year end on account of undisputed
 amounts payable in respect of employees'' provident fund and state
 insurance, investor education and protection fund, wealth tax, sales
 tax, customs duty, excise duty and cess for a period of more than six
 months from the date they became payable.
 
 (ii) Undisputed amounts payable in respect of tax deducted at source of
 Rs.62,035.34 lacs, service tax of Rs. 7,303.77 lacs, professional tax
 of Rs. 44.04 lacs (In all cases relating to the years 2007-08 to
 2012-13), fringe benefit tax of Rs. 55.87 Lacs (balance of tax for the
 financial year 2008-09) and gratuity to resigned employees of Rs.
 410.10 Lacs (relating to the year 2011-2012 and 2012-13) were
 outstanding for a period of more than six months from the date they
 became payable (excluding applicable interest in all cases) (to the
 extent identified pending review and reconciliation of the relevant
 accounts). The due dates for these amounts are as per respective
 statutes. The tax deducted at source liability indicated in this
 paragraph is without considering tax on certain payments to
 non-residents (liability withdrawn/ not provided for based on
 professional advice) as referred to in note 52 of the Notes.
 
 c. According to the information and explanations given to us, the
 following dues have not been deposited with the concerned authorities
 on account of dispute
 
                           Estimated 
 Year                      amount       Pending before
                          (Rs. in Lacs) 
 
 Tax deducted at source 
 Liability arising out of  12,028.73     Supreme Court of
 rejection of 
 approvals                               India
 under section 10(15A)
 of the Income Tax Act,
 1961, 
 
 2004  09                    144.74     Commissioner of 
                                         Income tax (Appeals)
 
 2007  08                    272.94     Commissioner of 
                                         Income tax (Appeals)
 
 2008  09                  1,194.32     Commissioner of
                                         Income tax (Appeals)
                                         Service Tax 
 
 2004-05 to 2007-08           464.94     Customs, Excise and
                                         Service Tax Appellate
                                         Tribunal 
 
 January 2005 to           19,067.67     Customs, Excise and
 September 2007                          Service Tax Appellate
                                         Tribunal. 
 
 June  October 2006          553.80     Customs, Excise and
                                         Service Tax Appellate
                                         Tribunal. 
 
 June 2008 to April           722.20     Customs, Excise and 2010
                                         Service Tax Appellate
                                         Tribunal. 
 
 2005  06 to 2009  10       168.38     Customs, Excise and
                                         Service Tax Appellate
                                         Tribunal.
 
 2010  11                    429.14     Customs, Excise and
                                         Service Tax Appellate 
                                         Tribunal.
 
 10. The Company''s accumulated losses at the end of the financial year
 were more than fifty percent of its net worth. The Company has incurred
 cash losses during the financial year and in the immediately preceding
 financial year.
 
 11. Based on our audit procedures and as per the information and
 explanations given by the management, the Company has defaulted in
 repayment of loans and interest to banks and financial institutions.
 Estimated unpaid overdue interest and installments to banks and
 institutions as at March 31, 2013 aggregated to Rs. 284,538.21 lacs
 including devolved guarantees/ letters of credit unfunded as at that
 date. The over dues relate to the financial years 2011- 2012 and
 2012-13.
 
 12. According to the information and explanations given to us and based
 on the documents and records
 
 produced to us, the Company has not granted loans and advances on the
 basis of security by way of pledge of shares, debentures and other
 securities. Accordingly, the provisions of the clause 4(xii) of the
 Order are not applicable to the Company.
 
 13. In our opinion, the Company is not a chit fund or a nidhi, mutual
 benefit fund / society. Accordingly, the provisions of the clause
 4(xiii) of the Order are not applicable to the Company.
 
 14.  In our opinion the Company is not dealing in or trading in shares,
 securities, debentures and other investments.  Accordingly, the
 provisions of clause 4(xiv) of the Order are not applicable to the
 Company.
 
 15. According to the information and explanations given to us, the
 Company has not given guarantees during the year for loans taken by
 others from banks or financial institutions. Accordingly, the
 provisions of clause 4(xv) of the Order are not applicable to the
 Company.
 
 16. Based on information and explanations given to us by the
 management, term loans taken during the year have been applied for the
 purpose for which they were obtained, wherever specified by the bank in
 the relevant sanction letters.
 
 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
 funds raised on short- term basis to an aggregate extent of Rs.
 745,468.39 lacs have been used for long term investment as at March 31,
 2013.
 
 18. Based on information and explanations given to us by the
 management, the Company has made not any preferential allotment of
 shares to parties or companies covered in the register maintained under
 section 301 of the Act. Accordingly, the provisions of clause 4(xviii)
 of the Order are not applicable to the Company.
 
 19. No debentures were outstanding as at March 31, 2013.  Accordingly,
 the provisions of clause 4(xix) of the Order are not applicable to the
 Company.
 
 20. The Company has not raised any money by public issue during the
 year. Accordingly, the provisions of clause 4(xx) of the Order are not
 applicable to the Company.
 
 21. As per the information and explanations furnished to us by the
 management, no material frauds on or by the Company and causing
 material misstatements to financial statements have been noticed or
 reported during the course of our audit, except for charge backs
 received by the Company from credit card service providers due to
 misutilisation of credit cards by third parties of Rs. 34.02 lacs.
 
                                  For B. K. RAMADHYANI & CO.
 
                                  Chartered Accountants 
 
                                  Firm registration number: 002878S
 
 Place : Mumbai                  (Shyam Ramadhyani)
 
 Date : May 30, 2013              Partner
 
                                  Membership No. 019522
स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • BREAKING NEWS RED : पी. चिदंबरम से पूछताछ करेगी ED
  • BREAKING NEWS RED : CBI कोर्ट ने ED को दिए आदेश
  • BREAKING NEWS RED : ED को चिदंबरम से पूछताछ करने की मंजूरी
  • BREAKING NEWS RED : ED चिदंबरम से तिहाड़ जाकर पूछताछ करेगी

अभी देखें

कमोडिटी कॉल

OUR WINNING PICKS

DID YOU INVEST?

INTRADAY PICKS!

(August 06, 2018)

AT (Rs)



GAIN (Rs)

ALL TIME WINNERS

RECO PRICE

PEAK PRICE

OUR PACKAGES

Super Combo

Powerful mix of both trader and investor packs with timely expert advice.

Technical

Designed especially for traders looking to tap the profit opportunities of volatile markets.

Fundamental

For all investors looking to unearth stocks that are poised to move.