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KLG Capital Services Ltd.

BSE: 530771 Sector: Financials
NSE: N.A. ISIN Code: INE929C01018
BSE LIVE 15:15 | 23 Nov 9.69 -0.51
(-5.00%)
OPEN

9.69

HIGH

9.70

LOW

9.69

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.69
PREVIOUS CLOSE 10.20
VOLUME 1998
52-Week high 20.50
52-Week low 8.00
P/E 8.14
Mkt Cap.(Rs cr) 3
Buy Price 9.69
Buy Qty 4565.00
Sell Price 10.70
Sell Qty 100.00
OPEN 9.69
CLOSE 10.20
VOLUME 1998
52-Week high 20.50
52-Week low 8.00
P/E 8.14
Mkt Cap.(Rs cr) 3
Buy Price 9.69
Buy Qty 4565.00
Sell Price 10.70
Sell Qty 100.00

KLG Capital Services Ltd. (KLGCAPITAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

KLG CAPITAL SERVICES LIMITED

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of KLG CAPITALSERVICES LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

2. Management’s Responsibility for the Standalone Financial Statements.

The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 of 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.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financialstatements based on our audit

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those tandards 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 but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrol 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.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone information required by the Act in the manner sorequired and give a true and fair view in financial 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 atMarch 31 2016.

(b) in the case of the Profit and Loss Account of the Profit for the year ended onthat date;

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date

5. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" statement on thematters specified in paragraphs 3 and 4 of the Order.

(ii) 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 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 the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(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 contracts forwhich there were any material foreseeable losses.

iii. Transfer to Investor Education and Protection Fund is not applicable to thecompany.

For NBS & Co.

Chartered Accountants

Firm Reg. No.110100W

CA Devdas Bhat

Partner

Membership No. 048094

Place : Mumbai

Date : 26th May 2016

Annexure A to the 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 members of KLG CAPITALSERVICES LIMITED on the financial statements for the year ended March 31 2016 wereport

i) In respect of its Fixed Assets:

a) The Company has maintained proper records showing full particulars of the fixedassets

b) As informed to us the management at reasonable intervals has physically verifiedthe fixed assets. We have been informed that the discrepancies noticed on physicalverification were not material

ii) In respect of its inventories

a) There are no inventories held by the Company.

iii) The Company has not granted any loans secured or unsecured tocompaniesfirmsLimited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a)to (c) of the order are not applicable to the Company.

iv) In our opinion and according to the information and explanations given to us thecompany has not given any loan guarantee or provided any security or made any investmentsas per the provisions of Section 185 and 186 of the Act.

v) The Company has not accepted any deposits during the year from public.

vi) The Central Government has not prescribed maintenance of Cost records under Section148 (1) of the Act.

vii) a) According to information and explanation given to us and on the basis of ourexamination of the books of account and records the Company has been generally regular indepositing 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 appropriate authorities. According tothe information and explanation given to us there are no undisputed amounts in respect ofsale tax income-tax customs duty service tax excise duty and Cess and other materialstatutory dues were in arrears as at 31st March 2016 for a period of more thansix months from the date they became payable except the dues mentioned below:

Particulars Amount
Income Tax Rs. 31414967/-
Service tax. Rs. 9156869/-

b) According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax customs duty excise duty and cess whichhave not been deposited on account of any dispute.

viii) The Company has not taken any loan either from financial institutions or from thegovernment and has not issued any debentures.

ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

x) According to the information and explanation given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.

xi) According to the information and explanation given to us and based on ourexamination of the records of the company has not paid/provided for managerialremuneration during the period under audit. Hence provisions of section 197 of the Actread with Schedule V to the Act are not applicable.

xii) 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.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act wherever applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards

xiv) According to the information and explanations given 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. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company.

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

xvi) According to the information and explanations given to us and based on ourexamination of the records of the company examined by us the company is registered undersection 45 IA of the Reserve Bank of India Act 1934 and the certificate of registrationhas been obtained.

For NBS & Co.

Chartered Accountants

Firm Reg. No. 110100W

CA Devdas Bhat

Partner

Membership No. 048094

Place : Mumbai

Date : 26th May 2016

Annexure B to the Independent 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 ofKLGCAPITAL SERVICES LIMITED ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financials.

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 andefficientconduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 extent applicableto an audit ofinternalfinancialcontrols 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 was 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 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For NBS & Co.

Chartered Accountants

Firm Reg. No.110100W

CA Devdas Bhat

Partner

Membership No. 048094

Place : Mumbai

Date : 26th May 2016