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Kinetic Trust Ltd.

BSE: 531274 Sector: Financials
NSE: N.A. ISIN Code: INE674M01019
BSE LIVE 15:27 | 30 Aug 8.68 -0.45
(-4.93%)
OPEN

9.40

HIGH

9.45

LOW

8.68

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.40
PREVIOUS CLOSE 9.13
VOLUME 10900
52-Week high 13.69
52-Week low 8.68
P/E 144.67
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.58
Sell Qty 50.00
OPEN 9.40
CLOSE 9.13
VOLUME 10900
52-Week high 13.69
52-Week low 8.68
P/E 144.67
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 9.58
Sell Qty 50.00

Kinetic Trust Ltd. (KINETICTRUST) - Auditors Report

Company auditors report

To

The Members

M/s KINETIC TRUST LIMITED

Report on Financial Statements

We have audited the accompanying Financial Statements of M/s KINETIC TRUST LIMITEDwhich comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit & Loss and the Cash Flow Statement for the period then ended and a summary ofsignificant accounting policies and other explanatory information.

Management 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 standalone financial statements that give a true and fair view of the financialposition financial performance 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 read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 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 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 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 aswell as evaluating the overall 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 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 its cash flows for the year ended on that date.

Report on other Legal & Regulatory requirements

1) As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of Section 143 of the CompaniesAct 2013 and on the basis of such checks of the books and records of the company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure –A a statement specified in paragraph 3 and 4 of the saidorder.

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 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 in terms of Section164 (2) of the Act.

(f) with respect to the adequacy of internal controls over financial reporting of theCompany and operating effectiveness of such controls refer to our separate report inAnnexure-B; and

(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 did 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.

3) As required by the Non –Banking Financial Companies Auditor’s Report(Reserve Bank) directions and on the basis of such checks of the books and records of thecompany as we considered appropriate and according to the information and explanationsgiven to us we give our observations as under:-

a) (i) The Company is registered as NBFC with the Reserve Bank of India as required U/S45-A of the Reserve Bank of India Act 1934 and the Certificate of the registration hasbeen granted.

(ii) The company is entitled to hold COR issued by Bank in terms its assets and incomepatterns as on 31 March of the applicable year.

(iv) This company is classified as Loan Company therefore this clause is notapplicable to the company. (v) This company is not classified as NBFC – Micro FinanceInstitutions therefore this clause is not applicable to the company.

b) As the Company is not accepting/holding public deposits clause 'B' of paragraph 3of the NBFC Auditor's Report (Reserve Bank) Directions 2008 is not applicable to thiscompany.

c) (i) The Board of Directors have passed a resolution for the non-acceptance of anypublic deposits.

(ii) The Company has not accepted any public deposits during the relevant year.(iii)The Company has complied with the prudential norms relating to income recognitionaccounting standards assets classification and provisioning for bad & doubtful debtsas applicable to it. (iv) As the Company is not a "Systematically Important NonDeposit Taking NBFC" Sub-clause 'IV' of paragraph C of the NBFC Auditor's Report(Reserve Bank) Directions 2008 is not applicable to this company.

d) The company has not received any specific direction from banks clause 'D' of theparagraph 3 of NBFC Auditor's Report (Reserve Bank) Directions 1998 is not applicable tothe company.

FOR S. P. MONGA & COMPANY

Chartered Accountants

Sd/- S. P. Monga (Proprietor)

M. No.: 081562

Firm Reg. No.: 012174N

Place: New Delhi

Date: 25/05/2016

ANNEXURE – A TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF "KINETIC TRUST LIMITED - REPORT UNDER THECOMPANIES (AUDITOR’S REPORT) ORDER 2016.

In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that: -

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

b) The Company has a regular programme of physical verification of its fixed assets atreasonable intervals and no material discrepancies were noticed on such verification.

c) According to information & explanation given to us and on the basis of ourexamination of the records of the company all the immovable properties are held in thename of the company during the year under references.

2) The company is NBFC primarily in financial services. Accordingly the company holdinvestment in securities and no discrepancies found by the management of the company.

3) As explained to us the company had not granted any loans secured or unsecured toany companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the act with respect tothe loans investments guarantees and security during the year under reference.

5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under wherever applicable.

6) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013.

7) a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund investoreducation protection fund employees’ state insurance income tax sales tax servicetax custom duty excise duty cess and other statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax service tax sales tax custom duty excise duty cessand other statutory dues were in arrears as at 31st March 2016 for a period ofmore than six months from the date they became payable.

b) According to the information and explanations given to us there are no materialdues of income tax service tax sales tax custom duty excise duty cess and otherstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute.

8) The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable.

9) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.

10) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.

11) According to the information and explanations give to us and based on ourexamination of the records of the company no managerial remuneration has been paid orprovided by the company. Accordingly paragraph 3(xi) of the Order is not applicable.

12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13) According to the information and explanations given to us and based upon the auditprocedures performed and according to the information and explanations given to us alltransactions with related parties are in compliance with sections 177 and 188 of CompaniesAct 2013 where applicable and the details have been disclosed in the Financial statementsetc. as required by the applicable accounting standards.

14) According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.

15) According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16) The company is already registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

FOR S. P. MONGA & COMPANY

Chartered Accountants

Sd/- S. P. Monga

(Proprietor)

M. No.: 081562

Firm Reg. No.: 012174N

Place: New Delhi

Date: 25/05/2016

ANNEXURE – B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF "KINETIC TRUST 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"KINETIC TRUST LIMITED" as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate."

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 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.

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 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 controlssystem over 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 adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2016 based on the internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For S. P. MONGA & COMPANY

Chartered Accountants FRN No. 012174N

Sd/- S. P. Monga (Proprietor)

M. No. 081562

Place: New Delhi

Date: 25/05/2016