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KG Petrochem Ltd.

BSE: 531609 Sector: Industrials
NSE: N.A. ISIN Code: INE902G01016
BSE LIVE 15:26 | 17 Nov 115.00 4.15
(3.74%)
OPEN

115.00

HIGH

115.00

LOW

115.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 115.00
PREVIOUS CLOSE 110.85
VOLUME 1
52-Week high 151.00
52-Week low 85.00
P/E 7.26
Mkt Cap.(Rs cr) 60
Buy Price 110.85
Buy Qty 30.00
Sell Price 115.00
Sell Qty 1.00
OPEN 115.00
CLOSE 110.85
VOLUME 1
52-Week high 151.00
52-Week low 85.00
P/E 7.26
Mkt Cap.(Rs cr) 60
Buy Price 110.85
Buy Qty 30.00
Sell Price 115.00
Sell Qty 1.00

KG Petrochem Ltd. (KGPETROCHEM) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT

To The Members of KG Petrochem Limited Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of KG PETROCHEMLIMITED which comprise the Balance Sheet as at 31st March 2016 the Statement of Profitand Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 of the Company in accordance with the accounting principles generally acceptedin India including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Opinion

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 cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss and Cash Flow dealt with bythis 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 in terms of Section164 (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 A".

(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 has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For R Sogani & Associates

Chartered Accountants

FRN: (018755C)

(BHARAT SONKHIYA)
Place : Jaipur PARTNER
Date : 27.05.2016 Membership No: 403023

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF KG PETROCHEM LIMITED

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 KGPETROCHEM LIMITED as of March 31 2016 in conjunction with our audit of the standalonefinancial 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 auditor's 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 ofmanagement 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 March 31 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.

Emphasis of Matter

We draw attention to the following matter

Broadly the Company is having most of the system in place as required for thecompliance of Internal Financial Control on Financial Reporting. However thosesystems/controls are having scope of further improvement. Also Company has not documentedadequate internal financial controls based on Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. Based on our audit procedures we are of the opinion that Company has rectified theobservations of our audit on internal financial controls over financial reporting toensure that they do not significantly affect financial reporting on Interim FinancialControl as on Balance Sheet date and thus our opinion is not modified in respect of matterbeing emphasized. Further Company is also in the process of documenting InternalFinancial Control as per guidelines issued by Institute of Chartered Accountants of India.

For R Sogani & Associates
Chartered Accountants
FRN: (018755C)
(BHARAT SONKHIYA)
Place : Jaipur PARTNER
Date : 27.05.2016 Membership No: 403023

ANNEXURE REFERRED TO IN THE AUDITOR'S REPORT ON THE ACCOUNTS OF

KG PETROCHEM LIMITED FOR THE YEAR ENDING 31ST MARCH 2016

As required by the Companies (Auditor's report) Order 2016 issued by the CentralGovernment of India in terms of section

143(1) of the Companies Act 2013 we report that:

1. In respect of fixed assets:

A. According to information and explanation given to us fixed asset register of theCompany are under the process of reconciliation. Also we are of the view that thisdocument needs to be improved.

B. According to information and explanation given to us title deeds of immovableproperties are held in the name of the Company.

C. According to information and explanation given to us all the fixed assets have beenphysically verified by the management during the year at reasonable intervals.

2. In respect of its inventories:

A. According to information and explanation given to us the inventory has beenphysically verified by the management at regular intervals during the year. However noformal document has been provided in this regard.

B. According to information and explanation given to us all discrepancies have beenrectified by the Company and accordingly considered in books of accounts.

3. In respect of loans:

According to the information and explanations given to us the Company has not grantedany loans secured and unsecured to companies firms and other parties covered in theregister maintained under section 2 of clause (76) of Companies Act 2013.

4. According to the information and explanations given to us the Company has notgranted any loans (including any loan represented by a book debt) to any of its directorsor to any other person in which the director is interested. The Company has not given anyguarantee or provided security in connection with any loan taken by Director or such otherperson. Also the Company has not made any investment during the financial year.

5. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of the directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any relevant provisions ofthe Companies Act 2013 and the rules made there under.

6. In respect of cost records:

We have been explained that the maintenance of cost records has not been prescribed bythe Central Government under Section 148(1) of the Companies Act 2013 for the periodunder review for any of the products.

7. In respect of statutory dues:

A. The Company is generally regular in depositing with the appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education Protection FundEmployees' State Insurance Income Tax Sales Tax Value Added Tax Wealth Tax ServiceTax Custom Duty Excise Duty Cess and other material statutory dues applicable to it.

B. According to the information and explanations given to us there are no dues ofIncome Tax Wealth Tax Sales Tax Value Added Tax Service Tax Customs Duty and ExciseDuty which have not been deposited on account of any dispute except the following: A. Dutyand Excise Duty which have not been deposited on account of any dispute except thefollowing:

Nature of Dispute Nature of the dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Finance
Act 1994 Service Tax 3375730/ FY 2005 - - 06 to FY CESTAT
(Service Tax) 2008 - 09

8. In respect of repayment of dues:

According to information and explanation given to us Company has not defaulted inrepayment of dues to a financial institution or bank or debenture holders.

9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.

10. According to the information and explanations given to us we report that no fraudby the Company or any fraud on the

Company by its officers or employees has been noticed or reported during the year.

11. In respect of Managerial Remuneration:

According to the information and explanations given to us we report that managerialremuneration has been paid in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act.

12. In respect of Nidhi Company:

The Company is not a Nidhi Company. Therefore this clause is not applicable to theCompany.

13. In respect of related parties:

All transactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the accounting standards and Companies Act 2013.

14. In respect of preferential allotment / private placement of shares:

The Company has not made any preferential allotment / private placement of shares orfully or partly convertible debentures during the year under review.

15. In respect of Non-cash transactions with directors:

According to information and explanation given to us the Company has not entered intoany non-cash transactions with directors or persons connected with him.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and if so whether the registration has been obtained.

For R Sogani & Associates
Chartered Accountants
FRN: (018755C)
(BHARAT SONKHIYA)
Place : Jaipur PARTNER
Date : 27.05.2016 Membership No: 403023