Kabra Commercial Ltd.
|BSE: 539393||Sector: Others|
|NSE: N.A.||ISIN Code: INE926E01010|
|BSE LIVE 10:26 | 27 Jul||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 539393||Sector: Others|
|NSE: N.A.||ISIN Code: INE926E01010|
|BSE LIVE 10:26 | 27 Jul||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of Kabra Commercial Ltd.
Report on the Audit of the standalone Financial Statements Opinion
We have audited the standalone financial statements of KABRA COMMERCIAL LTD. ("theCompany") which comprise the Balance Sheet as at 31st March 2016 and theStatement of Profit and Loss (Statement of Changes in equity) and statement of Cash Flowsfor the year then ended and notes to the financial statement including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and Profit and its cash flows for the year ended onthat date.
Basis for Opinion
We conducted our audit in accordance with the Standard on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibility under those Standardsare further described in the Auditor's Responsibility for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the institute of Chartered Accountants of India together with theethical requirements that are relevant to our Audit of the Financial Statements under theProvision of the Companies Act 2013 and the rules there under and we have fulfilled ourother ethical responsibility in accordance with this requirements and the Code of Ethics.We believe that the audit evidence we have obtain is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statement as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone that give a true and fair view of the financial position financialperformance (changes in equity) and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing thecompanies ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern the basis of accounting unlessmanagement either intents to liquidate the company or cease operation or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objective are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be accepted to influence the economic decision of users taken on the basis ofthis financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) order 2016 ("the order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the Annexure - "A" a statement on the mattersspecified in paragraph 3 and 4 of the order to the extent applicable.
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 purpose 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
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director interms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls referred to ourseparate Report in "Annexure - "B".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us :
(i) The Company does not have any pending litigations which would impact its financialposition.
(ii) The Company does not have any long - term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
ANNEXURE - "A" TO THE INDEPENDENT AUDITORS' REPORT
(With reference to the Annexure referred to in paragraph 1 in Report on other legal andregulatory requirements of the Independent Auditor's Report to the Members of the Companyon the financial statements for the year ended 31st March 2016 we report that:
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed Assets have been physically verified by the management during the year atreasonable intervals and according to the information and explanations given to us nomaterial discrepancies were noticed on such verification.
(c) The title deeds of the immovable properties are held in the name of the Company.
(ii) The Company has no Stock in Trade as on 31.3.2016.
(iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loan to parties covered in the register maintained undersection 189 of the Companies Act 2013. Thus paragraph 3(iii) of the Order is notapplicable.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with provision of Section 185 and 186 of the Act with respect ofloans and investments made. The Company has neither issued any guarantee nor has providedany security on behalf of any party.
(v) The Company has not accepted any deposits from the Public during the year.
(vi) The Company is not required to maintain cost records under the Companies (costRecords and Audit) Rules 2014.
(vii) (a) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other statutory dues to the appropriateauthorities. There is no dues as on the last day of the financial year outstanding for aperiod of more than six months from the date they become payable.
(b) There is no income tax or sales tax or service tax or duty of customs or duty ofexcise or value added tax or cess which have not been deposited with appropriateauthorities on account of any dispute.
(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank government or dues to debenture holders.
(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instrument) and term loans during the year. Therefore thisclause is not applicable.
(x) According to the information and explanations given to us no fraud by the Companyand on the Company by its officers or employees has been noticed or reported during thecourse of our audit.
(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.
(xii) The Company is not a Nidhi Company.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debenture during the year under review thereforethis clause is not applicable.
(xv) The Company has not entered into any non cash transactions with directors orpersons connected with them. Therefore this clause is not applicable.
(xvi) On the basis of Assets and Income pattern of the Company and as per theinformation and explanations given to us the Company is not required to be registeredunder section 45 - IA of the Reserve Bank of India Act 1934.
ANNEXURE - "B" TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KabraCommercial Ltd. ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's Internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's Internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations of themanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.