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KGN Enterprises Ltd.

BSE: 533790 Sector: Industrials
NSE: N.A. ISIN Code: INE755B01019
BSE LIVE 14:55 | 20 Nov 5.05 -0.10
(-1.94%)
OPEN

5.05

HIGH

5.05

LOW

5.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 5.05
PREVIOUS CLOSE 5.15
VOLUME 10
52-Week high 8.20
52-Week low 4.37
P/E 505.00
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.05
Sell Qty 190.00
OPEN 5.05
CLOSE 5.15
VOLUME 10
52-Week high 8.20
52-Week low 4.37
P/E 505.00
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 5.05
Sell Qty 190.00

KGN Enterprises Ltd. (KGNENTERPRISES) - Auditors Report

Company auditors report

To

The Members of

KGN ENTERPRISES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of KGN ENTERPRISESLIMITED("the Company) which comprise the Balance Sheet as at 31stMarch 2016 the statement of Profit & Loss and Cash Flow Statement for the year endedand a summary 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 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 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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor'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's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements

Opinion

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 on 31stMarch 2016.

b.) In the case of the Profit & Loss Account Statement Balance of the profit forthe year ended on 31st March 2016.

c.) In the case of the Cash Flow Statement of the Cash Flows for the year ended on 31stMarch 2016.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we enclose in the Annexure hereto a statement specified inparagraph 4 and 5 of the said order.

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

(i) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit ;

(ii) In our opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from our examination of those books;

(iii) The Balance Sheet and Profit & Loss Statement Balance dealt with by thisreport are in agreement with the books of account;

(iv) On the basis of 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.

(v) 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.

(vi) In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2016.

For Kirit & Co.

Chartered Accountant

Kirit Kumar

Proprietor M.No. 038047

FRN: 132282W

Place: Ahmedabad

Date: 30th May 2016

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 31 2016:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2. (a) The Inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3. (a) The Company has granted unsecured loan to its Subsidiary Companies and partiesin the register maintained under Section 189 of the Companies Act 2013. The Maximumamount granted during the year and year end balance of loan to such subsidiaries were asper details given below. The terms and conditions of such loans are not prima facieprejudicial to the interest of the Company.

Sr. no. Name of the Party Relation with the Company Maximum Outstanding (in Rs.) Closing Balance As on 31/03/2016 (in Rs.)
1. KGN Bio Tech Limited Subsidiary Company 59170944/- 59170944/-
2. KGN Oil & Gas Private Limited Subsidiary Company 12515060/- 12515060/-

(b) The Company has taken loans secured or unsecured from the companies or otherparties covered in the register maintained u/s 189 of the Companies Act 2013. The Maximumamount granted during the year and year end balance of loan to such subsidiaries were asper details given below. The terms and conditions of such loans are not prima facieprejudicial to the interest of the Company.

Sr. no. Name of the Party Relation with the Company Maximum Outstanding (in Rs.) Closing Balance As on 31/03/2016 (in Rs.)
1. KGN Industries Limited Associates 144302868/- 141795978/-
2. KGN Green Limited Subsidiary 600000/- 596000/-
3. KGN Protein Limited Subsidiary 655000/- 651000/-

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6. As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7. (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2016 for a period of more than six monthsfrom the date on when they become payable.

b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10. Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13. 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.

14. 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 and hence not commented upon.

15. 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.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For Kirit & Co.

Chartered Accountants

Kirit Kumar

Proprietor M. No. 038047

FRN : 132282W

Place: Ahmedabad

Date: 30th May 2016.