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LKP Finance Ltd.

BSE: 507912 Sector: Financials
NSE: LKPMERFIN ISIN Code: INE724A01017
BSE LIVE 15:40 | 15 Dec 107.95 -0.80
(-0.74%)
OPEN

111.00

HIGH

111.95

LOW

106.65

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 111.00
PREVIOUS CLOSE 108.75
VOLUME 8063
52-Week high 170.00
52-Week low 61.00
P/E 8.17
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 111.00
CLOSE 108.75
VOLUME 8063
52-Week high 170.00
52-Week low 61.00
P/E 8.17
Mkt Cap.(Rs cr) 132
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

LKP Finance Ltd. (LKPMERFIN) - Auditors Report

Company auditors report

To the members of LKP Finance Limited

Report on the Financial Statements for the year ended 31st March 2017

We have audited the accompanying Standalone financial statements of LKP Finance Limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant 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 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 andthe 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 control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

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 give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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 purpose 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014 ;

e. on the basis of written representations received from the directors as on 31st March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2017 from being appointed as a director in terms of Section 164 (2) of theAct.

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 has disclosed pending litigations in Honorable Bombay High court andHonorable Madras High Court in the matter explained under Note No. C1 (a) to (e) of theNotes to financial statements as at 31st March 2017. We are informed that the cases whenheard and disposed off will neither have cash outgo nor will have impact on the Statementof Profit and Loss.

ii. As represented by the company there are no longterm contracts including derivativecontracts having material foreseeable losses other than those disclosed in Note No. C-17in the Notes to financial statements as at 31st March 2017.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund of the Company.

iv. The Company has provided disclosures in its financial statements as to holdings aswell as dealings in specified bank notes during the period 8th November 2016 to 30thDecember 2016 and the same are in accordance with books of accounts maintained by theCompany - Refer Note No.C-19 in the Notes to financial statements.

For FORD RHODES PARKS & CO. LLP
Chartered Accountants
FRNo. 102860W/W100089
A.D. Shenoy
Place: Mumbai Partner
Date: 26th April 2017 Membership No.11549

Annexure "A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal and RegulatoryRequirement' of our Report of even date to the financial statements for the year ended31st March 2017

i. a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) Fixed assets have been physically verified by the management at reasonable intervalsand no material discrepancies were noticed on such verification.

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

ii. The inventory consists of shares and securities which are held in demat form. Nophysical verification is required since the same are in demat form. On the basis of ourexamination of the inventory records in our opinion the company is maintaining properrecords of inventory and there are no discrepancies.

iii. The company has not granted any loans secured or unsecured to companies/firms orother parties covered in the register maintained under section 189 of the Companies Act2013.

iv. According to information and explanations given to us the company has complied withthe provisions of Section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

v. The company has not accepted deposits from public within the meaning of sections 73to 76 or any other relevant provisions of the Companies Act 2013.

vi. Maintenance of cost records under sub section (1) of section 148 of Companies Act2013 is not applicable as the company is a Non Banking Finance Company.

vii. a) According to the information and explanation given to us and records of thecompany examined by us in our opinion the Company is regular in depositing undisputedstatutory dues including Provident Fund employee s state insurance fund income tax andany other statutory dues with the appropriate authorities. There are no undisputedstatutory dues payable for a period of more than six months from the date they becomepayable as at 31st March 2017.

b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax as at 31st March 2017 which hasnot been deposited on account of dispute.

viii. The Company has not defaulted in repayment of dues to financial institutions andbanks during the financial year.

ix. The Company has not raised any Initial Public Offer or further public offer and notobtained any term loan.

x. Based upon the audit procedures performed and information and explanations given bythe management we report that we have not come across any instances of fraud by thecompany or any fraud on the company by its officers or employees that have been noticed orreported during the year nor have we been informed of such a case by management.

xi. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Chit Fund Company/or Nidhi/ mutual benefit fund/society.

xiii. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year.

xv. The company has not entered into non-cash transactions covered by Section 192 ofCompanies Act 2013 with directors or persons connected with him.

xvi. The company is registered as Non-banking financial institution (NBFI) and isholding a Certificate of Registration (CoR) from Reserve Bank of India to carry onbusiness of NBFI in terms of Section 45-IA of the RBI Act 1934.

For FORD RHODES PARKS & CO. LLP

Chartered Accountants FRNo. 102860W/W100089

A.D. Shenoy
Place: Mumbai Partner
Date: 26th April 2017 Membership No.11549

ANNEXURE "B" to the Independent Auditors' Report Referred to in paragraphpertaining to ‘Report on Other Legal and Regulatory Requirement' of our report ofeven date on the financial statements for the year ended 31st March 2017

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 LKP FINANCELIMITED ("the Company") as of March 31 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended 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 Reporting(IFCOFR) issued by the Institute of Chartered Accountants of India. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat 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 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 judgments including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For FORD RHODES PARKS & CO. LLP

Chartered Accountants FRNo. 102860W/W100089

A.D. Shenoy
Place: Mumbai Partner
Date: 26th April 2017 Membership No.11549