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KLK Electrical Ltd.

BSE: 517170 Sector: Engineering
NSE: N.A. ISIN Code: INE125G01014
BSE LIVE 14:34 | 19 Sep 10.74 0.51
(4.99%)
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10.74

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10.74

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 10.74
PREVIOUS CLOSE 10.23
VOLUME 10
52-Week high 17.95
52-Week low 6.75
P/E
Mkt Cap.(Rs cr) 3
Buy Price 10.74
Buy Qty 990.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.74
CLOSE 10.23
VOLUME 10
52-Week high 17.95
52-Week low 6.75
P/E
Mkt Cap.(Rs cr) 3
Buy Price 10.74
Buy Qty 990.00
Sell Price 0.00
Sell Qty 0.00

KLK Electrical Ltd. (KLKELECTRICAL) - Auditors Report

Company auditors report

To

The Members

KLK ELECTRICAL LIMITED

Chennai.

We have audited the accompanying financial statements cf KLK ELECTRICAL LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and Cash Flew Statement for the year then 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.

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 there under.

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 control relevant to the company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion 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 Balance Sheet of the state of affairs of the Company as at 31st March2016 ; and

b) in the case of Statement of Profit and Loss of the Loss for the year ended on thatdate.

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 :

1. As required by the Companies (Auditor's Report) Order 2016 issued by the Governmentof India in terms of sub-section(11) of section 143 of the Companies Act 2013 we enclosein the "Annexure A" hereto a statement on the matters specified in paragraphs 3and 4 of the said Order.

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

i) 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.

ii) 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.

iii) 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.

iv) 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.

v) On the basis of the written representations received from the Directors as on 31March 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 termsof Section 164 (2) of the Act.

vi) 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".

vii) 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 :

a) Provision relating to Impact of pending litigations on its financial position in itsfinancial statements - NIL ;

b) Provision relating to Material Foreseeable Losses on Long-Term Contracts - NotApplicable. The company neither entered into any derivative contract during the year norhave any outstanding derivative contract at the year end.

c) The provision relating to transferring any amounts to the Investor Education andProtection Fund is not applicable to the company during the year.

"ANNEXURE A" TO THE AUDITOR'S REPORT

Statement referred to in our report of even date to the members of KLK ELECTRICAL

LIMITED on the financial statements for the year ended 31st March 2016:

(i) In respect of Fixed Assets :

The company does not have any Tangle Fixed Assets hence this clause is not applicableto the Company.

(ii) In respect of Inventories :

As explained to us the Company does not have any Inventories and hence this clause isnot applicable to the company.

(iii) The Company has not granted any loan secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Therefore clauses (iii) (a) to (iii) (c) of paragraph 3 of thesaid order are not applicable to the Company.

(iv) 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 loansinvestments guarantees and security provided.

(v) 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.

(vi) The provisions regarding maintenance of the cost records under Section 148(1) ofthe Companies Act 2013 are not applicable to the Company.

(vii) a) According to the records of the Company undisputed statutory dues including

Income-taxSales-tax Service Tax Duty of Customs Duty of Excise Value Added tax orcess and any other statutory dues to the extent applicable have been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31st of March 2016 for a period ofmore than six months from the date they became payable. The provisions PF and ESI are notyet applicable to the Company.

b) The Company is not having any disputed liabilities relating to Income Tax or SalesTax or Wealth Tax or Service Tax or Duty of Customs or Duty of Excise or Value Added Taxor Cess as at the year end.

(viii) On the basis of our examination of records The Company has not availed Loans orBorrowings from Banks or Financial Institutions or Government or by issue of Debentures.

(ix) On the basis of our examination of records and according to the information andexplanations given to us the Company has not raised any money by way of public offers(including debt instruments) and term Loans.

(x) In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers/employees has been noticed orreported during the year that causes the financial statements materially misstated.

(xi) In our opinion and according to the information and explanations given to us thecompany has not paid any managerial remuneration and hence the provisions of section 197read with Schedule V to the Act are not applicable to the Company.

(xii) The Company is not a Nidhi Company. Therefore clause (xii) of paragraph 3 of thesaid order is not applicable to the Company.

(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 sections 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) On the basis of our examination of records and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Thereforeclause (xiv) of paragraph 3 of the said order is not applicable to the Company.

(xv) On the basis of our examination of records and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with them during the year under the provisions of section192 of the Act.

Therefore clause (xv) of paragraph 3 of the said order is not applicable to theCompany.

(xvi) On the basis of our examination of records and according to the information andexplanations given to us the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of KLKELECTRICAL LIMITED ("the Company") as of 31st March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon 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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were 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 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 financial reporting includes those policiesand procedures that;

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) 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 authorisations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31st March 2016based on the internal 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 ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
Sd/-
Place : Hyderabad (V. Anant Rao)
Partner
Date : 27-5-2016 Membership No. 022644