The Members of
KESAR PETROPRODUCTS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. KESAR PETROPRODUCTSLIMITED which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;
a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016
b) in the case of the Statement of Profit and Loss of the "Profit" for theyear ended on that date; and
c) in the case of Cash Flow Statement of the Cash Flows of the Company for the yearended on that date.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in term of sub-section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statement on the matters specified inparagraphs 3 and 4 of the Order.
As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of 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 refer to ourseparate report in 'Annexure B'.
For SAYEED KHAN & ASSOCIATES
Firm Regd. No.125227W
Date: 24th May 2016
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the financial statements for the year ended 31 March 2016 we report that:
On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under:-
(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The company has a regular program of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner. In our opinion physicalverification is reasonable having regards to the size of the company and nature of itsassets. No material discrepancies were noticed on such verification.
(ii) (a) The inventory has been physically verified by the management during the year.In our opinion the frequency of such verification is reasonable;
(b) The procedure for physical verification of inventory followed by the management arereasonable and adequate in relation to size of the company and the nature of its business;
(c) The company is maintaining proper records of inventory. The discrepancies noticedduring the physical verification of inventories as compared to book records were notmaterial and have been dealt with in the books of account;
(iii) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013.
(iv) In my opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. During the course of our audit no other major weaknesses have been noticed in theinternal controls and there is no continuing failure for the same.
(v) The company has not accepted any deposits from public.
(vi) We have reviewed the books of account maintained by the Company pursuant to therules prescribed by the Central Government for maintenance of cost records u/s 148(1) ofthe Companies Act 2013 in relation to products manufactured and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and the recordsexamined by us the company is regular in depositing with the appropriate authoritiesundisputed statutory dues Employees Provident Fund and Sales Tax.
(b) According to the records of the company there are no dues of Sales Tax Income TaxCustoms Wealth Tax Excise Duty Cess which have not been deposited on account of dispute.
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 2013 and rules there under has beentransferred to such fund within time.
(viii) The company does not have accumulated losses at the end of the financial yearand has not cash losses in the current financial year and in the immediately precedingfinancial year.
(xi) Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that the Secured loans due payable by the company as at31/03/2016 are as per the details tabulated hereunder:-
|Name of the Institution/Purpose ||Amount in Rs |
|Other Secured Loans ||41133106 |
(x) According to information and explanation given to us the company has not given anyguarantee for loans taken by others from bank or financial institutions.
(xi) According to information and explanation given to us the company during the yearhas not applied for any term loans.
(xii) To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud on or by the company has been noticed orreported during the year.
For SAYEED KHAN & ASSOCIATES
Firm Regd. No. 125227W
M. No. 117114
Date: 24th May 2016
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 KesarPetroproducts Limited ('the Company') as of 31 March 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively 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' judgment 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.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controloverfinancial reporting may become inadequate because of changes in conditions or thatthe degree 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 31 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.
For SAYEED KHAN & ASSOCIATES
Firm Regd. No.125227W
Date: 24th May 2016