KM Capital Ltd.
|BSE: 530327||Sector: Financials|
|NSE: N.A.||ISIN Code: INE339T01014|
|BSE 05:30 | 01 Jan||KM Capital Ltd|
|NSE 05:30 | 01 Jan||KM Capital Ltd|
|BSE: 530327||Sector: Financials|
|NSE: N.A.||ISIN Code: INE339T01014|
|BSE 05:30 | 01 Jan||KM Capital Ltd|
|NSE 05:30 | 01 Jan||KM Capital Ltd|
K M CAPITAL LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial K M CAPITAL LIMITED ("theCompany") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
1. 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 (as amended). This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Act;safeguarding the assets of the Company; preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
2. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
3. 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.
4. 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 standalone financialstatements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls relevant to the Company's preparation of thefinancial statements that that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
6. 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.
7. 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 31 March 2017 and its Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements:
8. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A; a statement on the matters specified in paragraphs 3 and 4 ofthe Order.
9. 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 it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss andtheCashFlowStatement dealtwith 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 31March 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 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; 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 has no pending litigations.
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.
iv The Company has provided requisite disclosures in its financial statement as toholdings as well as dealings in Specified Bank Notes during the period from 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 14 financial statements.
Annexure-A to the Auditors' Report
The Annexure referred to in Independent Auditors' Report to the Members of the Companyon the standalone financial statements for the year ended March 31 2017 we report that:
(i) Reporting on Fixed Assets:
(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 during theyear and no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.
(c) The Company do not have any immovable properties.
(ii) Reporting on Inventories:
(a) The management has conducted physical verification of inventory at reasonableintervals during the year.
(b) The procedures of physical verification of inventory followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
(iii) Reporting on Loans & Advances u/s 189 of Companies Act 2013:
The Company has granted loans secured or unsecured to companies firms or otherparties covered in the register maintained under Section 189 of the Act. and with respectto the same:
(a) The principal amounts are repayable on demand and since the repayment of such loanshas not been demanded in our opinion receipt of the principal amount is regular; and
(b) There is no overdue amount in respect of loans granted to such companies firmsor other parties.
(iv) The Company has complied provisions of Section 185 and 186 of the CompaniesAct 2013 in respect to loans investments guarantees and security provided.
(v) The Company has not accepted any deposits from public.
(vi) To the best of our knowledge and belief the Central Government has notspecified maintenance of cost records under sub-section (1) of Section 148 of the Act inrespect of Company's products/ services. Accordingly the provisions of clause 3(vi) ofthe Order are not applicable.
(vii) (a) The Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax wealth tax service tax duty of customs duty of excise value added tax cessand other material statutory dues as applicable with the appropriate authorities.Further no undisputed amounts payable in respect thereof were outstanding at the year-endfor a period of more than six months from the date they become payable.
(b) There are no dues outstanding in respect of income-tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax and cess on account of anydispute.
(viii) In our opinion the Company has not defaulted in repayment of dues to anyfinancial institution or a bank or to debenture-holders during the year.
(ix) In our opinion the Company has not raised any amount by way of initial publicoffer term loan or any other debt instrument during the year.
(x) No fraud on or by the Company has been noticed or reported during the periodcovered by our audit.
(xi) The Company has not paid any managerial remuneration during the year soapplicability of Section 197 does not arise.
(xii) The Company is not a nidhi Company.
(xiii) In our opinion all transactions with related parties are in compliance withsection 177 and 188 of the Companies Act 2013.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) The Company has not entered any non cash transactions with directors orpersons connected with him during the year.
(xvi) The Company is not required to be registered under section 45-1A of theReserve Bank of India Act 1934.
ANNEXURE- B to the 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 were engaged to audit the internal financial controls over financial March 31 2017in conjunction with our audit of the financial statements of the Company for the yearended 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the CompaniesAct 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financialreporting based on my/our audit conducted in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing to the extent applicable to anaudit of internal financial controls both issued by the Institute of CharteredAccountantsof India.
Because of the matter described in Disclaimer of Opinion paragraph below we were notable to obtain sufficient appropriate audit evidence to provide a basis for an auditopinion on internal financial controls system over financial reporting of the Company.
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 financialreporting and thepreparation of financialstatements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financialcontrol 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) reasonable assurance that transactions arerecorded as necessary to permit preparation of financialstatements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial March 2017 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.