kalpataru power transmission - usa, inck.110.itil"j pow('r tramm1rnon usa, inc 1s...

K C Mehta ~ Cv. Chartered Accountants

INDEPENDENT AUDITORS' REPORT To, The Board of Directors KALPATARU POWER TRANSMISSION - USA, INC

Report on the Ins AS Financial Statements

We have audited the accompanying Ind AS financial statements of KALPATARU POWER TRANSMISSION - USA, INC ("the Company"}, which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information. The financial statements have been prepared by management of the Company based on the financial reporting provisions of section 129(3) of the Indian Companies Act, 2013 ("the Act") for the purpose of consolidation by Kalpataru Power Transmission Limited("the Holding Company").

Management's Responsibility for the Financial Statements

The Management of the Company is responsible for the preparation of these 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 financial reporting provisions of section 129(3) of the Indian Companies Act, 2013 ("the Act" ). This responsibility also includes maintenance of adequate accounting records for safeguarding of 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 financial statements that give a true and fair view anci 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 the 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 fi nancial 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 ci rcumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes

~EH7',i4,6t ~· "i" ~· '(, ~ VAOO{>ARA ~

Meghdhanush, Race Course, Vadodara 390 007, INDIA Phone: +91 265 2341626 I 2440400 Mumbai • Ahmedabad • Bengaluru

e-mail: [email protected]; website: www.kcmehta.com

K C Mehta ~ C1T. Chartered Accountants

evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 audit opinion on the financial statements. t ..

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give a true and fair view of affairs of the Company as at 3l51

March, 2017 and loss of its results of operations and its cash flows for the year then ended in accordance with the financial reporting provisions of section 143 (2) of the Act.

Basis of Accounting

Without modifying our opinion, we draw attention to 2.B to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Holding Company to prepare Consolidated financial statements only to comply with section 129(3) of the Act. As a result, the financial statements may not be suitable for another purpose.

Other Matter

We did not consider the applicable local laws and regulations of the country of operations or applicable to the company.

Our opinion is not modified in respect of these matters.

For K. C. Mehta & Co. Chartered Accquntants Firm's Registration No. 106237W

~~ Ne~ Partner Membership No. 045027 Place: Vadodara Date: 15th May, 2017

Meghdhanush, Race Course, Vadodara 390 007, !NOIA Phone: +91 265 2341626 I 2440400 Mumbai • Ahmedabad • Bengaluru

e-mail: [email protected]; website: www.kcmehta.com

KALPATARU POWER TRANSMISSION - USA INC.

Balance Sheet as at 31st March, 2017

(Amt in USO)

As at As at As at Note

31st M arch, 2017 31st March 2016 1st April 2015 -

ASSETS

Non-current assets

(a) Property, Plant and Equipments 3 92 .05 608.05 ,,. 1,230 05

(b) Deferred tax assets (net ) 4 - 4,418.43 108,483.31

Tota l Non Current Assets 92.05 5,026.48 109,713.36

Current Assets

(a) Financial Assets

(i) Trade receivables 5 183,129.00 467,953.36 223,400.55

(i i) Cash and cash equivalents 6 91,937.76 99,901.05 72,891.04

(b) Other current assets 7 7,739.75 7,740.00 4,076.00

Total Current Assets 282,806.51 575,594.41 300,367.59

TOT AL ASSETS 282,898.56 580,620.89 410,080.95

EQUITY AND LIABILITIES

Equity

(a) Equity Share Capita l 8 500,000.00 500,000.00 500,000.00

(b) Other Equity 9 (222,813.13) (161.15) (213,489.74)

Total Equity 277,186.87 499,838.85 286,510.26

Current Liabilities

(a) Financia l Liabilities

(i) Trade Payables 10 1,650.00 37,000.40 75,700.91

(ii) Others 11 3,347.39 3,740.58 3,716.02

(b) Other Current Liabilities 12 - 6,043.00 21,838.48

(c) Provisions 13 714.30 29,456.17 22,315.28 (d) Current Tax Liabi lities (net) 14 - 4,541.89 -

Total C4frent Liabilities 5,711.69 80,782.04 123,570.69

TOTAL EQUITY AND LIABILITIES 282,898.56 580,620.89 410,080.95

Significant Accounting Policies

Notes forming part of t he Financial Statements 1to26

For K. C. Mehta & Co. For and on behalf of the Board of Directors

Chartered Accountants

~J1 -

8 - ~ ~ ~e)"'\\.C,. ' • 0 ---- i~ ·~ ,

Neela R. Shah ~ ~

M. C. Mehta ~ 't:~ Partner 1>eoAcc.o-J Director --Membership No. 045027

Place : Vadodara Place : Austin Texas

Date :15th May 2017 Date : 10th May 2017


Statement of Profit and Loss for the Period ended 31st March, 2017

Note

Revenue from Operations 15

Other Income 16

TOTAL INCOME

EXPENSES

Employee Benefits Expense 17

Depreciation and Amortization Expense 3

Other Expenses 18

TOTAL EXPENSES

Profit/ {Loss) Before Exceptional Items and Tax

Exceptional Items

Profit/ ( Loss) Before Tax

Tax Expenses 19 Current Tax

Deferred Tax Profit/ ( Loss} for the period

Other Comprehensive Income

Items that wi ll be reclassified to Profit or Loss

Exchange diff. in translating foreign operation :

Income tax on above it ems

Total Comprehensive Income for the period

Earnings per Equity Share (for continuing operation)

Bas ic and Diluted , Significant Accounting Policies

Notes forming part of the Financial Statements

For K. C. Mehta & Co.


\&JS~· Neela R. Shah

Partner

Membership No. 045027

Place : Vadodara

Date :15th May 2017

-

1 to 26

2016-17

86,318)'!H

55.88

86,374.81

140,799.49

516.00

163,292.87

304,608.36

(218,233.55)

(218,233.55)

4,418.43

(222,651.98}

(222,651.98)

(0.45)

{Amt in USD)

2015-16

684,734.46

34,186.35

718,920.81

200,542.14

622.00

195,821.31

396,985.45

321,935.36

321,935.36

4,541.89

104,064.88

213,328.59

213,328.59

0.43

For and on beha lf of t hC' Boa rd

~V-'\,\C.. M. c. Mehta

Director

Pla ce : Austi n Texas

Date : 10th May 20 17

KALPATARU POWER TRANSMISSION - USA, INC.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST M ARCH,2017

A. CASH FLOW FROM OPERATING ACTIVITIES:

Net profit /(Loss) before taxation, and extraordinary Item s

Adjustment for

Oepr£>c1at1on

l 1abil1t1es wntten back

lntert•st Income

OPERATING PROFIT /(LOSS) BEFORE WORKING CAPITAL CHANGES

Adjustment for.

Trade Receivable

Trade & Other Llab11i t1es

Loans a1d advances

CASH GENERATED FROM / (USED IN) OPERATIONS

lncorre Tax Paid

NET CASH FLOW FROM/ (USED IN) OPERATING ACTIVITIES

B. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of Fi xed Asse ts

1nterpst Income

CASH USED IN INVESTING ACTIVITIES

C. CASH FLOW FROM FINANCING ACTIVITIES:

llcpayn"e"t of short term unsecured loans

D. E.

F

Not es

1

N(T Cl\SH SURPLUS IN FINANCING ACTIVITIES

NET INCR EASE/ (DECREASE) IN CASH AND CASH EQUIVALENT (A+B+C)

Opening Cash and Cash Equivalent

Closing Ca sh and Cash Equivalent

, Cash and Cash Equivalents compris es of :

Cash on hand

Ba1ancc with banks

Current Accounts

2 Cash How statement has been prepared under the indirect

mrthod

As per our report of even dat e attached


Char tered Accou ntants

~ Neel a R. Shah

Partner


Place : Vadodara

Dat e :15th May 2017

INFLOW/

(OUTFLOW)

USO

2016-17

,,. (218,233.SS)

516.00

-(55.88)

(217,773.43)

284,824.36

(70,528.46)

0 .25

(3,477.28)

(4,541.89)

(A) (8,019.17)

55.88

(B) 55.88

-

(C)

(7,963.29)

99,901.05

91,937.76

91,937.76

For and on b ehalf of the Board of Directors

~eY\.\.~ M . C. Mehta

Director

Place : Aust in Texas

Date :10th May 2017

INFLOW I (OUTFLOW)

USO

2015-16

321,935.36

622.00

(34,119.21)

(67.14)

288,371.01

(244,552.81)

{13,211.33)

(3,664.00)

26,942.87

-

26,942.87

67. 14

67.14

-

-

27,010.01

72,891.04

99,901.05

99,901.05

Statement of Changes in Equity for the year ended on M arch31, 2017:-

(i) EQUITY SHARE CAPITAL

Particulars

Balance at 01 April 2015

Changes During the year

Balance at 31 March 2016

Changes During t he year


(ii) OTHER EQUITY

Particulars

Balance at 01 April 2015

Profit I (Loss) for the year

Other com prehensive income


Profit I (Loss) for the year

Other com prehensive income




~ Neela R. Shah

Partner


Place : Vadodara

Date :15th May 20{7

(Amount in USD )

500,000.00

500,000.00 ,...

500,000.00

(Amount in USD )

Reta ined earnings

(213,489.74)

213,328.59

(161.15)

(222,651.98)

(222,813.13)

For and on behalf of the Board

M . C. Mehta

Director

Place : Austin Texas

Dat e :10th May 2017

KALPATl\RU POWER TRANSMISSION - USA INC.

NOTES ON FINANCIAL STATEMENTS

1 CORPORATE INFORMATION

K.110.itil"J Pow('r Tramm1rnon USA, Inc 1s registered with the office of the Secretary of State of Texas under the Certificate of File No.

80.19 1610 rrr rt'p,1stcred address of th!' company is 2825 Wilcrest Dr, Suite 210 Houston, Texas 77042. The company is primarily

Pn(ltlp,ed 1n salrs and services in rela tion to sales of Transmission towers.

Ki1loa1aru Power Transmission - USA, Inc. is wholly owned subs1diaty of Kalpataru Power Transmission L,.~ , India.

2. SIGNIFICANT ACCOUNTING POLICIES

I\ Statement of compliance

I h•· f1n.1nc1c11 st.HC'm!'nts of the Company have been prepared 1n accordance with Indian Accounting Standards (Ind AS) notified under

1hr Como.in1!'s (Indian Accounting Standards) Rules, 2015 (as amended) with effect from April 1, 2016.

lhr-><' are the Company's f11st Ind AS FinJncial Statements. The date of transition to Ind AS is Aprill, 2015. The mandatory exceptions

.111d on\1011.1t <'•<'motions ava d<>d by the Company on First-t1m!' adoption have been detailed in Note 2. O.

Prrv1ous prPod f1gu•<'S 1n the Financial Statements hav!' been restated in compliance to Ind AS

Up to the yr.1r rnded Marrh 31, 2016, the Company had prepared the Financial Statements under the histor ica l cost convention on

acuu,11 bJ"s n Jccordance w ith thr GC'nerally Accepted Accounting Principles (Previous GAAP) and the applicable Accounting

Stand.irds as prescribed under the provisions of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014.

In .iccordancr with Ind AS 101 "first Time adoption of Indian Accounting Standards" (Ind AS 101), the Company has presented a

rC'conul1at1on of Sharpholdc>rs' equity under Previous Gl\l\P and Ind AS as at March 31, 2016, and Apri l l, 2015 and o f the Net Profit as

pN Pr<'v ous Gl\l\P and Total Comprehrns1vc Income under Ind AS for the year ended March 31, 2016.

B fla sis o' preparation o f Financial Statement

1 ht• F1nJnc1a1 Stiltrments have been prepared on the historical cost basis except for certain financial instruments that are measured at

fdir values at the end of each reporting period, as explained in the accounting policies below.

''"'0' r,11 rnst s P,!'ner;illy biiscd on the fair valuC' of the consideration given in exchange for goods and services.

in, o.i.! .Jt<1,., tvt•l hJs bN?n .l>>umed to h.ivc dur.1tion of 12 months. Accordingly, all assets and liabilities have been classified as

, ..,, ,., : .JI u i tu11111: <l> Pl'r the CompJny s operJt1ng cycle and o ther criteria set out in Ind AS-1 'Presentat ion of Financial

( ) • ~" li~ 1u r "1Pasurcment

r ,. • v.dy• ·s tt·ro pr•ce that 'I/ OU Id be received to sell <Jn asset or paid to t ransfer a liability in an orderly t ransaction between market

P•"t•c·pants .Jt t '1c mrasurrmrnt datr under current market conditions.

i h" Co·r 0<1nv c.itl'~Onlt'S ,J\S!'tS and li.ib1iit1rs mcJsurt•d at fair value into one of th ree levels depending on the abili ty to observe

1 •JhJt' <'mO•Ov<'d 1n their m!'asuremf'nt which arr drscnbrd as follows:

(d) Lt•11ci I input> Jrc quoted prices (unadjusted) 1n act ive markets for identical assets or liabilities.

(b) I Pvel / 1np1J ts <1rP inpu ts that arr observable, either directly or indirectly, other than quoted prices included w ithin level 1 for the

tl\,Pt O lclbdtlV

(c) I eve' 3 l"PUlS arc unobsrrvablc inputs for the asset or liability reflecting significant modifications to observable related market

d<1t,1 o• Con1pary's assumpuons about pricing by market participants.

C. Crit ical Accounting Judgments, Assumptions and Key So urces of Est imation Uncertainty

l ht p•rparat1on of the financial statements 1n conformity with recognit ion and measurement principles of Ind AS requires the

MJ•ia,:cmen t to make Judgements, estimates and assumptions that affect the reported ba lance of assets and liabilities, disclosure

rrl.1t1n1. to contingent assets and liabilities as at the date of the financial statements and the reported amount of revenues and

pxprnst> for thr period. Estimates and underlying assumptions arc reviewed on ongoing basis. Revision of accounting estimates are

rrcop,n1sed in thr period 1n which the estimates arc revised and future period affected.

t 't m.11!'> ,1nd undNly1np, .issumptt0ns .irr rcv1rwrd on an ongoing basis. Revisions to accounting est imates are recognised in the

rP•1od r wh·th th(• C'>t1mat<'S .irr revised .ind futurr prriods arf' affected.

Kpy source• of ,udgmrnts, assumptions and estimation uncertainly in the preparation of the Financial Statements which may cause a

m.itrr·al adJustmrnt to thr carrying amounts of assets and liabilities within the next financia l year, are in respect of useful lives of

Property, Plant and Equipmrnt , provisions, provision for income tax, measurement of deferred tax assets and cont ingent assets &

hi!btlitil'S.

(i) CritlcaLJudp,mcnts in apply ing account ing policies

(a) Determination of functional currency

Currency of the primary economic environment in which the Company operates ("the functional currency") is US Dollar($) 1n wh1ct1

the company primarily generates and expends cash. Accordingly, the Management has assessed its functional currrncy to be i.JS dol '.ir

($).

(b) Determining whether an arrangement contain leases and classification of leases

The Company enters into service/ hiring arrangements for various assets/ services The determinat ion of lease and classification of

the service I hiring arrangement as a finance lease or operating lease is based on an assessment o f several factors, 1ncludin5. but 'let

limited to, t ransfer of ownership of leased asset at end of lease term, lessee's option to purchase <1nd ~timated certa inty of ex~rrnL

of such option, proportion of lease term to the asset's economic life, proportion of present vJlue of minimum le.ise pJymer.t> to la .r

value of leased asset and extent of specialized nature of the leased asset.

D. Revenue Recognition

Revenue from sale of goods is recognised when significant risks and rewards of the goods are p;1ssed on to th<• buyrr

Revenue from services is recognized as per the terms of the contract.

Success Fee is recognized on accrual basis as per the contractual terms and conditions and as and when the• terms arr ful fil led.

Interest income is recognized on time proportion basis.

Other items of income are recognized as and when the right to receive arises.

Insurance and other claims are recognised only when it is reasonably certain that thr ultimate collect1on will bP madr

E. Income ta><es

Income tax expense comprises current tax expense and net change in the deferred tax assrt or l1abi11ty d uring thr ypar. Currl'nt and

deferred tax are recognised in profit or loss, except when they relate to items that are recop,nos<•d in other comprPh!'ns1ve nconw or

directly 1n equity, in which case, the current and deferred tax are also recognised in mher comprehensive •ncome or directly n rouily

respectively.

Deferred tax assets and liabilities are recognized for future tax consequence al!ributJble to tomonp, difference> bctwP1·n ta•.oo.p ncu 11 •

and account ing income that are measured at relevant enacted tax rates. l\t e,1ch bal,1nw shrc>l date thr companv •r,111 .. s .c '

unrecognized deferred tax assets, to the extent they become reasonably certain or vir tually CPrtaon of reJlil.i t1on . .is th< ca~e ni,1y l.lt

(i) Current Income taxes

Provision for current tax is made on the basis of estimated tax payable for the year as per the applicablr Ti!x La w1 .

(ii) Deferred income taxes

Deferred tax is recognized on temporary differences between the carrying amounts of assets il~d 'iabi'l!it'I "' thr fina'lcwi "•'~"n•rn11

and the corresponding tax bases used in the computation of taxable profit. DefC'rrcd tax l1Jbil1t1cs arr r,rnr.ra•ly 't'cogn·1rd fer J'i

taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary d1ffrrrncr\ to thr rxtt··1~ l"<'t

it is probable that taxable profits will be available against which those deductible temporary diffrrenccs CJn be o..tili1rd

The carrying amount of deferred tax assets is reviewed at the end of each reporting prriod ;ind rrducrd to thr r~trn t that ot •> no

longer probable that sufficient taxable profits w ill be available to allow all or part of the assrt to br rccovc·rc·o

K/\LP/\T/\RU POWER TRANSMISSION - USA INC.

NOTES ON FINANCIAL STATEMENTS FOR THE PERIOD ENDED AS O N 31st MARCH,2017

r. Employee Bcnrfits

In o:ovt c he r1•' h "' 1udc \Jt.ir cs. wagPs, lrav!' rncashmrnt towards un availed leave and compensated absences.

r,. ,~icr: lP r11"11plo~Cl' bt>nl'f I> arc rccogn1wd ill thrir undiscountcd amount in the account ing period in which they are incurred.

G. Provi~ions, Contingent Liabilities & Contingent Asset

rrov1s ons a'r rccor,n1scd when thcrr is present obligation (legal or constructive) as a result of a past event, it is probable that

ctw1p,111y will be rrquircd to settle the obligallon and a reliable estimate can be made of the amount of the obligation.

1 hP a~purt rPCOP,"izrd as a provisio., is the best estimate of the consideration required to settle the present obligation at the end of

t "P rrcort1nr. period, takinp, into account the risks and uncertainties surrounding the obligation. When a provision is measured using

thr cas'i flows rs11matrd to srttlr the present obligation, its carrying amount Is the present va lue of those cash nows (when the effect

or 1nr t1"1r va uc of money is material)

II d1\clmurt> for ~cont nrwnt liubtltty is made whrn thrrr is a possible obligation or a present obligation that may, but probably will

rio• f!·qu1 c• ar ou1!low of rPsourct's Whcrr therr is il possible obligation or a present obligation in respect of which the likelihood of 0111 flow l)f rp\ourcM is rrmotr, no dtsclosurr is madr

C ont1"f'<'nt ;1ssPts ar!' disclosed 1n the financial statements by way of notes to accounts when an inflow of economic benefit is proba•J I'

I! Property, Plant and equipment

PrrpC' 'Y. " 1~r: .i'ld fqu1pn'Cf't an• stated at cost or acquisit ion/construction net of recoverable taxes and include amounts added on -r- ,1IL": C", 11·\1 .1uw'1ul.1:c•d dt'P'C'CiiJt or I ,1mcrt1w11on ;ind impairment loss, 1r any. Al l costs, including finance costs and

;1d1us111cr1 Jr sini: from rxcht1np,c rate v;ir1allons attributable to fixed assets till assets arc put to use, are capitalized.

C:o11p.i:r.rs arC' drprcc1.ncd us1np, the straight line method over the est imated useful lives of the assets, generally th ree to five years.

f. lmpa 1rmrnt of Assets:

t·' .J> , .• \ trl'a:Pd .J\ mp.Mrd whrn thr carrying cost of assrt exceeds its recoverable value. An impairment loss is charged to the

Prc'1l & loss Account in thr yrar in which an assrt is identified as impaired. The Impairment loss recognised in prior accounting

prr 10r1\ is rcvrrscd 1f thNc has been a change 1n thr C?Sllmate of recoverable amount in subsequent period.

J <c·rig'1 Excl'ance Transact ions:

- ,. '~ -~1 """' c~"<'"CY of' "1' Company s US Do11ar ($)which represents the currency of the primary economic environment in which

r ""S •rt<'"\ "' cur·t·"r rs 01hrr thiln the Como~ny·s func11onal currency (forr1r,n currencies) are recognised at the rates of exchange

rir1 v,1 nr '" I' t• d.11r' of tht• tr~n\;ic11on1 flt thr rnd of rach reporting pcrrod, monetary items denominated in foreign currencies are t•;in\l,11rd t"1rp ml'.tn r>xch ,1nf:r ratr prrvarl1nfl on thP l;ist day of thr rrport1n8 prriod.

I''"''"'!'' " 'ift"rnrPs on monl' trJry 1trm\ arr rrcogn1s1'd 1n the StalC'ment of Proftt and Loss in the period in which they arise.

J< i:a .. ,..•.,fi<. Prr c;harr

tl,1 1c "1rn1nt:s prr sharr arr computed by d1v1d1ng profit or loss ( after tax) of the Company by dividing weighted average number of

l'O,,,ty ,.,il•rs out\t<1nd1ng durrnr, the period. l hr company did not have any potential to dilutive securities in any other period

L. ri nancial instruments

I 1n,inC1.1I ,11\Pls and financial liabilities arc rrcognisrd when Company becomes a party to the contractual provisions of the 1111trurrt•nts.

I 1n<Jnu.11 assets and financial liabilities are init ially measured at fair value. Transaction costs that are d irectly attributable to the

,1cau1>1l 1on or 1ssur of f1nanciJI assets and financial liabilities (other than financial assets and financial liabilities at fair value through

profit or ios\) are .1ddPd to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial

rNog'l t 01 Tr;1n\,1ct1on CO\t\ dirPctly attributable to the acquisition of financial assets or financial liabilities at fair value through

prc·'1t or loss a'r rpcop,n1Sed 1mmrdiately in the Statement of Profit and Loss

(i) Classification:

The Company classifies financial assets as subsequently measured at amortised cost , fair valuf' throur,h 01 hrr comprrhens:v!' nccn1e

or fair value through profit or loss on the basis of its business model for manaB1ng the financial dSSPts <1 nd tht' contractual c.i'>h 11ow'

characteristics of the financial asset.

All financial liabilities are classified as subsequently measured at amortised cost rxcPpt for f1r1anc1a1 h.ibil1t1<''> <ll faor v.11ur thro "t!"

profit or loss. Such liabilities, including derivatives, are subsequently measured at fair vi.l lu<' with ,1ny g.11n\ or los;ps d"""t on "

measurement recognised in profit or loss.

Financial instruments are classified as a liability or equity according to the substance of th<' contrilctu.il ,m.in1wm<>nt dnd not it s <'~•II

form. t"~

An equity instrument is any contract that evidences a residual interest in thf' assets of <Jn f'n t1ty <1fter drducting all o f 11; l1Jb1lit11•;

Equity instruments issued by a company are recognised at the proceeds rc>cC?1ved, n!'l of issue costs .

(ii) Init ial recognition and measurement:

Financial assets and financial liabilities are initially measured at fair value. Transaction co sts that Jr<• directly au ri butablc• to th«

acquisition or issue of financial assets and financial liabilities (other than financial asset and l1<Jbilit1es Jt fJir value throueh prof t &

loss) are added to or deducted from the fair value measured on initial recognit ion of the financial ass!'ls or finJncial l1ao11! t.PS .

(iii) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost, using the effective interest rate mC'lhod, 1f

(a) the financial asset is held within a business model whose objective is to hold fi nancial ass!' I s in ordN 10 col '.rcl contract,.a l c 1sh

flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that arr solrly p.iymPnts of pr111c1;i.i nd

interest on the principal amount outstanding.

This category generally applies to t rade and other receivables.

(iv) Financial asset at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if thesr financial assets arr h!'ld w1th1n bt.:\,np<s

whose objective is achieved by both collecting contractual cash flow and selling asset finanoal aswt ind thr cortr<1ct~.1 tc''r"~ of

financial asset give rise on specific dates to cash flows that are solely payment of principal ard iri trrest on p11nc 0.11 ""'0 ir t

outstanding.

(v) Financial asset at fair value through profit or loss {FVTPL)

Financial assets are measured at fai r value through profit or loss unless it is measured at amorti?rd CO\t or fai r v,11u1• th rour.h 01nN

comprehensive income. Financial assets under this category are measured in1t1ally as wrll as at rach r1•port1nr, datr ~I l;m v.1,cH w1t'1

all changes recognised in profit or loss. (vi) Derecognit ion

A financial asset is derecognised when the contractual rights to the cash flows from thr asset r xp1re, or when 11 t ransfNs th<' l1n<1'>n,11

asset and substantially all the risks and rewards of ownership of the asset 10 anothrr party 1f trw Como<1ny nr 1th1•r tr.in\!('" nor

retains substantially all the risks and rewards of ownership and continues to control thr transfrrrrd r1\set, 1hr Company r«rn~n''"~ l '

retained interest in the asset .

On derecognition of a financial asset , the difference between the asset's carrying dmount .ind thr sum of thl' t0n>1CivrJt1011 11'l< l .l'J

and/or receivable and the cumulative gain or loss that had been recognised in other comprehPn;1v(' 1ncom1• Jnd acturrulJt,·c.J ,,. <'t<u l y

is recognised in the statement of profit or loss.

A financial liability is deK!cognised when the ob ligation under the l1ab1l1ty 1> d.,(h,1rr,PJ. :.incc%•d ur t•xp.rc•\ 1:11 n .;r •'•·: ,

financial liability is replaced by another from the same lender on substantially d;'fNrnt t rrrr.>. ur :hp:,, n'' o' ,in r >i\: n,: •.,,, . liability are substantially modified, such exchange or modificat ion is accountrd JS drrrco1:n111on of th<' 01 ,, ~.11 ' 1n.1~,1a .• h .: , • 'HJ

the recognition of a new financial liability. The difference between the carrying amo~nt cf thr f nanciJ, l1Jb tv cP'l'cagn "·t! ,11J :'1, consideration paid and payable is recognised in the statement of profit or loss.

M . Equity inst ruments

Equity instruments issued by the Company are recorded at the proceeds received nrt of d1rrct 1swe costs

N. Lease

Lease payments under operating leases are recognized as an expense on a st raight line basis in thr St<ltemc-nt of Prol·t ,1rid Les ~ ov••

the lease term.

0. First -time adoption - mandatory exceptions and optional exemptions

(i) Overall Principle

The Company has prepared the opening balance sheet as per Ind /\Sas of April t , 2015 (the t rans1t1011 date) by rccornisinr, r1ll "' '''IS

and liabilities whose recogn ition is required by Ind AS, not recognising items of assrts or liab1ht1es w hich arr not orrm1ttrd by Ind I\~

by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind l\S, and aoply1ng Ind l\S in the mea,ur<'mPnl of

recognised assets and liabilit ies. However, this principle is subject to certain mandatory excrp11ons and certain oot1onal Pxrmpuor>

availed by the Company as detailed below

(ii) Deemed cost for Property, Plant and Equipment,

The Company has elected to cont inue with the carrying value of all of its Proper ly, Plunt and [qu1pm1•nts rt,cop,nis<'a a; of /\pr11 1 10 I '> vransilion date) measured as per the Previous GAAP and used that carrying value a; its deC'm!'a cost ,1s ol th<' trJns111011 d.111•

KAlPAT/\RU l'OWfR T<\/\NSMISSION - US/\ INC.

Effrct of Ind 115 adoption on the Balance Sheet as at 31st March 2016 and lst April 2015

ASS[ rs 'Ion currr nt assets

.,.... r , ., Pl l"'I' 11,...d 1 qu1pf"!"~"":s ,f rt"'(! t ·X J \~('I·~ (rtC"l)

l otal Non Current llssets Currrnt As~rts

(,1 .~.1· a l\"dS

( • "';tt•" .. 'Cl \irlb C''t

I IC a'" •~o c,H" rou•vwrrits (b ')i~,....,. "('\"' ' l~t;C'l'i

Total Current Assets

l QTlll ASSElS

EQUI rv AND Ll/\lll ll ms Equity

(J) ou I"/ S .1 •c C1p1tal

(b' 0th~· cau•'y lOIJ I Fqu1ty

Currrnt L1ab1l1t1es

,1 )~ • fl~

rr 1d11 i1y;i~ C\

(1 1 Ortwr,

{oi 0th"'' Currpnt l1no1l11·rs 1 c. rov1' on' ( j '" .r r ~ ~ ll1 , : ~'("rt}

totdl C urrrn l I 1ab1h1y

"OJ AI [ QlJll Y AND ll /\BI LITILS

Noles

As at 31st March 2016

Previous

GAPP

60805 4 418.43

5,026.48

467 953.16

99901 05 7,740.00

575,594.41

580,620.89

500,000.00

(161.15) 499,838.85

37,000.40 3,740.58 G,043.00

29,456.17 4,541 89

80,782.04

580,620.89

Effect of

transition to

Ind AS

As per Ind AS

balance sheet

~-05 4,418.43

5,026.48

467,953.36

99,901.05 7,740.00

575,594.41

580,620.89

500,000.00

(161.15) 499,838.85

37,000.40 3,740.58 6,043.00

29,456.17

4,541 .89

80,782.04

580,620.89

Effect of Ind AS adoption on the statement of profit and loss for the year ended 31St March 2016.

,

'"' ,., ·nr 1011\L INCOMI (I• II)

( )( P[ '1515

y''"' 11,, .. r' • f w prt"'~f'S

)oor •n,•1 c1n ,,, c1h.""Ort1\dt1ont 111; oen~ C'

rO tl\ L [)(PENS(5 (IV) •> .. ,, i • / ( ~•\\I•~',,,.' vrr':>' onitl ltrf'T'l.s and Tt1x (I V)

Profit f3pf orC' Tax

''"I •µ1 ')t~\

r ~· .. c . -- .1• "r·'rr ( 'I W'

Profi: fo r thr pr.riod

O:hrr Co~ prrhcns1vc Income

rota I Co mprehensive Income for the period

Notes

Year ended 31st March 2016

Previous Effect of

GAPP transition to As per Ind AS

Ind AS

684 734.116 684,734.46 34, 186.35 34,186.35

718,920.81 718,920.81

200,542.14 200,542.14 622.00 622.00

195,82 1.31 195,821.31

396,98S.4S 396,985.45 3?1 935 36 321,935.36

321,935.36 321,935.36

4,5111.89 4,541.89 104,0611 88 104,064.88

213,328.59 213,328.59

213,328.59 213,328.59

(Amt in USO)

As at 1st April 2015 (Date of transition)

Previous GAPP

1,230.05 108,483.31

109,713.36

223,400.55 72891 .04

4,076.00 300,367.59

410,080.95

500,000.00

(213,489.74) 286,510.26

75,700.91 3,716.02

21,838.48

22,315.28

123,570.69

410,080.95

Effect of transition

to Ind AS

As per Ind AS

balance sheet

1,230.05 108,483.31

109,713.36

223,400.55 72,891 .04

4,076.00

300,367.59

410,080.95

500,000.00 (213,489.74)

286,510.26

75,700.91

3,716.02 21,838.48

22,315.28

123,570.69

410,080.95

KALPATARU POWER TRANSMISSION - USA, INC.

3 Property, Plant and Equipments

...

As at 31st March, As at 31st March, As ar 1st April 2015

earring amount of : 2017 2016

Computers 92.05 608.05 1230.05

Cost or Deemed Cost '· Computers Total I

Balance as at April 1, 2015 1,230.05 1,230.05

Addition - -Disposa I/adjustments - -Balance as at 31st March, 2016 1,230.05 1,230.05

Add ition - -Disposal/adjustments - -

Balance as at 31st March, 2017 1,230.05 1,230.05

Accumulated Depreciation

Balance as at April 1, 2015 - -

Addition 622.00 622.00

Disposa I/adjustments .. Balance as at 31st March, 2016 622.00 622.00

Addition 516.00 516.00

Disposa I/adjustments

Balance as at 31st March, 2017 1,138.00 1,138.00

The Company has elected to continue with the carrying valu•' of its other Property Plant & Equipment {PPE) recognised as

of April 1, 2015 (transition date) measured as per the Prev 11J JS GAAP and used that carrying value as its deemed cost as

on the transition date as per Para D7AA of Ind A~ 101

Kl\LPl\TARU POWER TRANSMISSION - USA INC.

NOHS ON FIN/\NCIAL STATEMENTS

4 DEFERRED TAX ASSETS (Net)

()pf erred lax /\ssets

lk1£' • 'Cd r iJX L•cJbilit1cs

TOT/\L

Deferred tax /\sset I (Liability)

Particulars

2016- 17

Deferred tax assets/ (liabilities) in relation to:

l.·1Ja c I abil ' Y allowable on payment basis

f<irripd forw,1rd of unused Ta x Losses

Jotu

Particulars

2015-16

Defe rred tax assets/ (liabilities) in relation to:

l no<J•d I ability allowable on payment basis

Ccrricd 'orwud of unused Tax Losses

o~ J

5 TRAOr RECE IVABLES- Current (, ;c._uri•d Con; cierc>d good)

Cur rrnt • , TOTAL

As at 31st Mar As at 31st March

2017 2016

4,418.43

4,418.43

,..

Opening balance Recognised in

profit or loss

4,418.43 (4,418.43)

4,418.43 (4,418.43)

Opening balance Recognised in

profit or loss

3,347.29 1,071.14

105,136.01 (105,136.01)

108,483.31 (104,064.88)


2017 2016

183,129.00 467,953.36

183,129.00 467,953.36

• Outstanding trade receivable are with in agreed credit period, and/ or not due.


6 CASH /\ND Cl\SH EQUIVALENTS 2017 2016 11<i 1ance W;th Banks

1·1 Cur'ent /\ccounts 91,937 76 99,901.05

TOTAL 91,937.76 99,901.05

As at 31st Mar As at 31st March OTHER CURRENT /\SSETS 2017 2016

l'r('(ldld i XPPnSP\ 7,739.75 7,740.00

TOTAL 7,739.75 7,740.00

(Amt in USO)

As at 1st April

201S

108,483.31

108,483.31

(Amt in USO)

Recognised in

other Closing balnce

comprehensive

income

(Amt in USO)

Recognised in

other Closing balnce

comprehensive

income

4,418.43

4,418.43

(Amt in USO)

As at 1st April

2015

223,400.55

223,400.SS

(Amt in USO}

As at 1st April

2015

72,891.04

72,891.04

(Amt in USO)

As at 1st April

2015

4,076.00

4,076.00

KALPl\Tl\RU POWER TRl\NSM ISSION · USA INC. NOHS ON r!Nll'ICIAL STl\HM ENTS

8 rQUITY l\UTHO'll5[()

.O(l 0 0 ( 1i00 000 CoMn"On Share~ of USO I cJc'i ' .., ·v ~a c ~o

TOTAL

SSlJLJ Sull~Cf\.Ui.D Jnd ~l\llHJP

r,00.000 ( 'i00,000) Common Shares of USD \ Cd(h f.;•ty Pdld up

TOTAL


500,000.00

500,000.00

500,000.00

500,000.00

8.1 Pr con 1a:1on of•~<' Lqu•tv shar<>s outstanding at the beginning and at the end of the reporting period

[Qu1ty Shares As at 31st March 2017

Numbers USO

500,000 500000

5·1are> outstand•ng al the end of the year 500,000 500000


500,000.00

500,000.00

500,000.00

500,000.00

As at 31st March 2016 Numbers USO

500,000 500000

500,000 500000

(Amt In USO)

As at 1st April

2015

500,000.00

500,000.00

500,000.00

500,000.00

As at 1st April 2015 Numbers USO

500,000 500000

500,000 500000

8 2 • ~C' C:>"1pany r." on y one claH o! fQu1ty Shares having par value of USO 1 per share Each holder of Equity Shares Is entitled to one vote per share.

8.3

9

r 1rr · c' w1."0 : ~ :' :rr Cor1pJny, :~c ~aiders o1 fqu: ty Shares will be entitled to receive remaining assets of the Company, after distribution of all

.10 :•r\ fhr r. s1r. bLt10n w 1 I be n p·opon·on to the number of Equity Shares held by the shareholders.

/Ill'"<' "hove s•1arc>s Mr hrld by Kalpataru Powe• Transmission Limited, India (the holding Company).

As at 31St March,

As at 31st As at 1st April

March 2016 2015 2017

()'lt[R EQUln'

, ~ pi..~ • · r.p ~· a~rrncr t of Profit and Lose;

\\ :Jpr ·a~t ua.flnCC Shec~ (151.15) (213,489.74) (227,947.00)

l\'ld Profit (loss) for the yeM (222,551.98) 213,328.59 14,457.26

1011\l (222,813.13) (161.15) (213,489.74)

Deferred tax Asset I (liability)

Particulars

2016-17 Deferred tax (liabilities)/assets in relation to:

Unpaid liab1llty allowable on payment basis

Total

Deferred t ax Asset / (Liability)

Particulars

2015-16 Deferred tax (liabil1ties)/assets in relation to.

Unpaid liabi lity allowable on payment basis

Carried forward of unused Tax Losses Total

,.

Opening

ba lance

l\,t.18 1\3

4,418.43

Opening

balance

3347 29

105,136.01

108,483.31

Recognised in Recognised in other

profit or loss comprehensive Closing billnc e

income

(1\,1\18 1\ 3)

(4,418.43)

,,,.

Recognised on Recogn ised in other

profit or loss comprehensive Closing bJ lnc c

income

1,071 11\ c .. s . .J

(105,135 01) ( 104,064.88) 4,11! 8.l\3



(Amt in USO}

As at 31st March As at 31st March As at 1st /\pril

2017 2016 2015

10 TRADE PAYABLE

Others 1,65(1.-00 37,000.40 7~,700.91

TOTAL 1,650.00 37,000.40 75,700.91

11 OTHER FINANCIAL LIABILITIES

Other Payable 3, 311 7.39 3,711058 3, 116.02

TOTAL 3,347.39 3,740.58 3,716.02

12 OTHER CURRENT LIABILITIES

Statutory Liabilities 6,0113 00 11 818 48

TOTAL 6,043.00 21,838.48

13 PROVISIONS

Provision for employee benefits 714.30 29,456.1 1 v 315.28

TOTAL 714.30 29,456.17 22,315 .28

14 Current Tax Liabilities (net)

Current tax Liability 4,541.89

TOTAL 4,541.89



(Amt in USO)

2016-17 2015-16

15 REVENUE FROM OPERATIONS

Income from Services 86,318.93 684,734.46 TOTAL ,..B6,318.93 684,734.46

16 OTHER INCOME

Interest Income 55.88 67.14

Llab1lt ties Written Back 34,119.21 TOTAL 55.88 34,186.35

17 EMPLOYEE BENEFIT EXPENSES

Salaries, Wages, Bonus 130,978.38 191,558.85 Payrol l Taxes 9,821.11 8,983.29

TOTAL 140,799.49 200,542.14

18 OTHER EXPENSES

Hent 2,508.00 2,628.94

Rates and Taxes 4,289.00

Postage & De l ivery 22.24 18.44

Telecommunication Expenses 7,125.60 7,174.05 Trave lling [xpenses 30,918.04 27,673.14 Lega l and Pro fessional rxpenses 100,495.07 131,056.15

Subscriptions 15,355.20 8,182.56 Audi t Fees 2,500.00 2,500.00

Business Development expenses 1,195.00 1,076.25 Bank Commission and Charges (Incl ECGC) 732.72 1,165.78 Miscellaneous Expenses 2,441.00 10,057.00

, TOTAL 163,292.87 195,821.31

19 Tax Expenses

-Current tax 4,541.89 -Deferred Ta x (4,418.43) 104,064 .88 Total Income tax expenses recognised in the

current year (4,418.43) 108,606.77

The income tax expenses for the year can be reconciled to the accounting profit as follows

Profit / (Loss) before Tax

Income tax Expenses calcula ted at prevailing slab

ra te

Deferred tax assets on carried forward loss not

recognised

Slab Rate adjustment

(218,233.55)

(68,361.08)

63,942.65

{4,418.43)

321,935.36

108,804.87

(198.10)

108,606.77

NOTE : '20'

Except for the ongoing business commitments against which no loss is expected, there nave been no know n cont1np,Pnt ,,,001ot1c·\ or

commitments as at the Balance Sheet date.

NOTE : '21 ' RELATED PARTY TRANSACTION Disclosures as required by INDAS are given below:

Sr. No. Name o f Related Part ies Nature of Relat ionship

1 Kalpataru Power

Limited- India

Transmission Holding Company

2 Manish Mohnot Kev Manap,emrnl Prrso nnPI 3 D. 13. Patel Kev M an aRement Personnr>I

4 Maharsh1 C Mehta Kc>y Milndp,C'ment PN \Onnl'I

Nature of Transaction Key Management Prrsonn<' Hold1np, Comp.1ny 'ota l

Transact ions durinl!: the vear

Services Provided - 86,318.93 86, .l l ll.93

(&·15,895 -16) (,.: ... /!:)', ~bl

86,318 93 86,3 18.93 Kalpataru Power Transmission Limited

(C,il!>.89 , 116) c,.;' il'J,46)

Tower Purchase -

Salary and other benefit s 130,978.38 130,978.38

(191,558 85) f J')l '>5i! 85)

Maharshi C. Mehta 130,978.38 130,978.38

( 191,558.85) , 1S ! '>S8 85)

Trade Payables w rit ten back - - -( lil, !l'J OOJ I ''1 l l'lllt')

Kalpataru Power Transmission Ltd -

(J4 119001 I 3 . l lJ 001

Balance as at 31st March

Payables

(37,000 40) (JI.JOO 40) ,.

-Kalpataru Power Transmission Ltd

(37,000 40) (]/ 000 40)

Receivables - 183,129.00 183,129.00

(%7,95'1 02) ;4U <JSll 02)

Ka lpataru Power Transmission Ltd 183,129 00 183,129.00

- (46/ 9~'1 02) 46 /, 9•,.1 0])

Previous Year Figures are in Bracket I NOTE · '22'

The value of realizat ion of Current Assets in the ordinary course of business will not be less than thC' valuC' J t which thc•y arC' statl'd ir t he•

Balance Sheet.

NOTE : '23'

Basic and Diluted earnings per share (EPS]

Particulars For the year ended 31st for tne year t! llOCO 31~t

M arch, 2017 March, 2016

Profi t I (Loss) after tax as oer accounts {222 6521 213 329 WelP.hted avera2e number of shares outstand1nP. 500,000 500 000 Face Value oer share in USO l 00 ! 00

Basic and Diluted EPS (045) () 43

NOTE : '24'

NOH '25 '

financial instruments Disclosure

JS I Cap1t.i l Management

nC' (omp.1<'y s obir.ctive when munaging CJP•ta i ~ to

S.if<'f,u.ird 1t \ ability to continue JS p,01np, concern so that the Company is able to provide maximum return to stakeholders and benefits for

olhN stakeholders, and Maintain an optimal capital structure 10 reduce the cost of capital.

ThC' capi ta structure of the Company consists of t otal equity (Refer Note 24). The Company is not subject to any externally imposed capit al •rq,JirC''l1C'1t\,

Gearing Rat io

·1ir Cor-'p.iry has no outstanding debt as at the end of reporting period. Accordingly, the Company has NIL gearing rat io as at March 31,

2017, M.vch 31, /O H: a '1d as at /\pril, I 7015

25.2 Categories of financial instruments

Part iculars

Financial Asset s

M rasured at amortised cost

1 r idr rrcC' vablrs

(1) Ca\h .i~d c.i sh equivalC'nts

~i nancial liablllt ics

Mrasured at amort ised cost

( I l r.J(j(' PayablC'S

111 1 OthC'r 11.,ancral LiabihtJC'S

As at

31st M arch 2017

183,129.00

91,937.76

1,650.00

3,347.39

,,,.

As at 31st M arch 2016

467,953.36

99,901.05

37,000.40

3740.58

(b) \Jonr of the f1nanc1al assets and habilit1es have beC'n designated as FVTPL or FVTOCI.

JS 3 Financial Risk m anagement object ives

(Amt in USD)

As at 1st April 2015

223,400.55 1 72,891.04

75,700.91

3,716.02

rhc' Comp<Jny's financial assets mainly consist of t rade receivables outstanding from ho lding company. There are no borrowings as on dat e.

Cons1dC'rinr, th i ~. manar,cmC'nt 1s of the view that company is not exposed t o any material financial r isks viz: market risk, credit r isk, interest

r.i t r• mk and liquidity ri sk. Thr Com pany is not exposed t o any currency risk since all it s financial assets and liabilities are denominat ed in USD.

NOi E '26'

Oprrat ing Segment

1 he· Company's ooc-rat1on\ fall under single ~c>gment namely "sales and services in relation t o Transmission towers. taking into account the

"'~\and retu rns, the organization st ructure' and the internal report ing system s.

Entity wide disclosures as rC'quired under IND l\S 108 are as under:

/\I non currr nt a\sC'h other than deferred lax /\<;set> are located in the company's country of domicile.

Co,,,oal"v\ \1p,n 1~canl rC'vC'nuC's (more than 90%) arC' derived from its hold ing company. The total revenue from such ent it ies amounted to

u5D 8(, !18 93 in 201& 17 and USD &l\!J89!J ~& 1n 2015 16

No othN single cu>tomer cont ributed JO% or more to the company's revenue fo r 2016-17 and 2015-16.

r or K C. M1~ht a & Co. For and on behalf of the Board of Directors

Chart ered Accountant s

~~ -----Neela R. Shah M . C. M ehta

Director

Vcmbrrshlp No. 045027

r> ace · Vadodara Place : Aust in TeKas

Date l'.ith M ay 2.017 Date :10th May 2017

kalpataru power transmission - usa, inck.110.itil"j pow('r tramm1rnon usa, inc 1s...

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