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Kapil Raj Finance Ltd.

BSE: 539679 Sector: Financials
NSE: N.A. ISIN Code: INE332Q01015
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OPEN 30.00
PREVIOUS CLOSE 0.00
VOLUME 2
52-Week high 34.90
52-Week low 14.13
P/E 130.43
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 30.00
Sell Qty 2.00
OPEN 30.00
CLOSE 0.00
VOLUME 2
52-Week high 34.90
52-Week low 14.13
P/E 130.43
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 30.00
Sell Qty 2.00

Kapil Raj Finance Ltd. (KAPILRAJFINANC) - Auditors Report

Company auditors report

To

THE MEMBERS OF

KAPIL RAJ FINANCE LIMITED

REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of KAPIL RAJ FINANACE LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss for the year then ended Cash Flow Statement for the yearended on that date and a summary of significant accounting policies and other explanatoryinformation.

MANAGEMENTS RESPONSIBILITY FOR THE 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting 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.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

BASIS FOR QUALIFIED OPINION

The company has not registered and enrolled itself as per the provisions of theMaharashtra State Tax on Profession Trades Calling and Employment Act 1975 whichattracts Tax Liability under the Act along with interest and penalty under the provisionsdue thereon. The extent of liability is not determinable in absence of availability ofinformation in this regards. To this extent the Profit and Loss Account balance is overstated and the Current Liabilities are under stated

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis of QualifiedOpinion paragraph above and subject matter described under "Emphasis of Matter"the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesaccepted in India.

a. In the case of the Balance Sheet of the state of affairs of the company as at March31 2016;

b. In the case of Statement of Profit and Loss of the Profit for the year ended onthat date; and

c. In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

EMPHASIS OF MATTER

Attention is invited to the following:

1. Minutes of the meeting of the Board of Directors and General Meeting of the memberswere not produced before us for our verification.

2. The Internal Audit Report for the year ended March 31 2016 has not been producedbefore us for our verification.

3. The accounting records have not been properly kept. The registers required by theCompanies Act to be kept by the company have not been properly kept in accordance with theAct.

4. The company carries on Finance Activities and hence by the guidelines issued by theReserve Bank of India the company complies to be a Non-Banking Financial Company (NBFC).This requires the company to get itself registered with the Reserve Bank of India as aNBFC but the company has not made any formal application with the Reserve Bank of Indiato get itself registered.

5. The company is carrying exceptionally large Cash Balances in the Books. This isprejudicial to the interest of the company.

6. The company has not passed Special Resolution to borrow moneys exceeding the limitsspecified under section 180 (1) (c) of the Companies Act 2013 which is aggregate of itspaid up Share Capital and Free Reserves of the company.

7. The company has carried on the Business Activities during the year being PrincipalBusiness Activity viz. dealing in Real Estate. The same forms part of the other objectsof the company but the same have not been adopted as the main objects of the company asrequired by the section 13 of the Companies Act 2013.

8. The company has carried on Business Activities during the year being PrincipalBusiness Activity viz. dealing in Futures and Options Market (Derivatives Market) engagedin Speculation Business in Equity Commodity and Foreign Exchange Markets. Theseactivities are not part of the object clause of the company

9. The Business Activity transactions dealing in Trading Derivatives and SpeculationTransactions related to Equities Future and Options segment Foreign Exchange andCommodities are not accounted as per the generally accepted principles.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by The Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we enclose in the Annexure a statement on thematter specified in the paragraphs 3 and 4 of the said Order.

2. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the 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 except for the matter referred in the "Emphasis of Matter" at point no.3 so far as appears from our examination of those books.

c) The Balance Sheet Statement of Profit and Loss and Cash Flow dealt with by thisReport are in agreement with the books of account. d) In our opinion the aforesaidfinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014 except for the matterreferred in the "Emphasis of Matter" at point no. 9.

e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

f) 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 did not have any long-term contracts including derivative contracts forwhich 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.

For PANKAJ P. SANGHAVI & CO.
Chartered Accountants
Firm Reg. No. 107356W
Sd/-
(Ankit P. Sanghavi)
MUMBAI: 31.05.2016 M. No. 131353

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in Our Report of even date to the members of KAPIL RAJFINANACE LIMITED on the accounts of the company for the year ended March 31 2016. Onthe basis of such checks as we considered appropriate and according to the information andexplanations given to us during the course of our audit we report that:

I. In respect of its Fixed Assets:

a) The Company has not produced before us the Fixed Asset Register for ourverification.

b) The fixed assets were physically verified during the year by the management atregular interval during the year. However the physical verification report was notproduced before us for our verification.

c) No disposal of a substantial part of fixed assets of the Company has taken placeduring the year.

II. In respect of its Inventory:

a) The company has not produced before us the physical verification report of theInventory carried on by the management.

III. The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act.

IV. In our opinion and according to the information and explanations given to usduring the course of audit there is an adequate internal control system commensurate withthe size of the company and the nature of its business with regards to purchase of fixedassets. In our opinion and according to the information and explanations given to usthere is no continuing failure to correct major weakness in internal control system.

V. The company has not accepted any deposits from the public in accordance with theprovisions of section 73 to 76 of the Act and the Rules framed there under.

VI. The Central Government has not prescribed the maintenance of cost records under subsection (1) of Section 148 of the Act for the business carried out by the Company.Accordingly paragraph 3 (vi) of the order is not applicable.

VII. a. According to the information and explanations given to us the Company hasdelayed in depositing undisputed statutory dues including Income Tax and other statutorydues with the appropriate authorities. The company has not registered and enrolled itselfas per the provisions of the Maharashtra State Tax on Profession Trades Calling andEmployment Act 1975 which attracts Tax Liability under the Act. The extent of liabilityis not determinable in absence of availability of information in this regards.

b. According to the information and explanations given to us there are no statutorydues which have not been deposited with the appropriate authorities on account of anydispute.

c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and rule made there under.

VIII. The Company has not taken any loan from any financial institution or banks.Accordingly Paragraph 3 (ix) of the Order is not applicable

IX. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company

X. During the course of our examination of books and records of the Company carriedout in accordance with generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instances ofmaterial fraud on or by the Company noticed or reported during the year nor have we beeninformed of such case by the management.

XI. The Managerial Remuneration has been provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V of the CompaniesAct 2013.

XII. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of clause 3 (xii) of the Orderare not applicable to the Company

XIII. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable Accounting Standards.

XIV. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.

XV. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

XVI. In our opinion the company is required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and the company has not applied for the same.

For PANKAJ P. SANGHAVI & CO.
Chartered Accountants
Firm Reg. No. 107356W
Sd/-
(Ankit P. Sanghavi)
Partner
Mumbai:31.05.2016 M.No.131353