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K K Fincorp Ltd.

BSE: 503669 Sector: Financials
NSE: N.A. ISIN Code: INE509J01013
BSE 16:01 | 30 Jan 12.36 -0.63
(-4.85%)
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12.35

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NSE 05:30 | 01 Jan K K Fincorp Ltd
OPEN 12.35
PREVIOUS CLOSE 12.99
VOLUME 235
52-Week high 19.15
52-Week low 7.74
P/E 5.26
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.35
CLOSE 12.99
VOLUME 235
52-Week high 19.15
52-Week low 7.74
P/E 5.26
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

K K Fincorp Ltd. (KKFINCORP) - Auditors Report

Company auditors report

To

The Members of K K FINCORP LIMITED

Report on the Standalone Financial Statements

Opinion

I have audited the financial statements of K K FINCORP LIMITED (gtheCompanyh) which comprise the balance sheet as at March 31 2022 and thestatement of profit and loss including other comprehensive income) statement of changesin equity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (Collectively referred to as standalone financial statements ).

In my opinion and to the best of my information and according to the explanations givento my the aforesaid standalone financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at March 31 2022 and its profit (financialperformance including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date :- a. In the case of the balance sheet of the state ofaffairs of the company as at 31st March 2022 b. In the case of the statement of profitand loss of the Profit (financial performance including other comprehensive income)changes in equity; and c. In the case of the cash flow statement of the cash flowstatement for the year ended on that date.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor s Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules there under and I have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that in my professional judgment Ire of mostsignificance. in my audit of the financial statements of the current period. These mattersIre addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon I have determined that there are no key audit matters tocommunicate in my report.

Other Information

The Company s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and my auditor's report thereon. My opinion on the financialstatements does not cover the other information and I do not express any form of assuranceconclusion thereon.

In connection with my audit of the financial statements my responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or my knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work I haveperformed I conclude that there is a material misstatement of this other informationthan I have required to report that fact. I have nothing to report in this regard.

Responsibility of Management for the Standalone 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 (including other comprehensive income) changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the. Indian Accounting

Standards ( Ind AS ) specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that Ire operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error. In preparingthe financial statements the Board of Directors is responsible for assessing the Companys ability to continue as a going concern disclosing as applicable matters related. togoing concern and using the going concern basis of accounting unless the Board ofDirectors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Boards of Directors are also responsible for overseeing the company s financialreporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor s report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with Standards on Auditing ( SAs ) I exerciseprofessional judgment and maintain professional skepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis formy opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3} of theAct I am also responsible for expressing my opinion on whether the company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management s uses of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditor s report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my auditor sreport. However future events or conditions may came the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. I considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluated the effect of anyidentified misstatements in the financial statements.

I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that I identify during my audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

From the matters communicated with those charged with governance I determine thosematters that Ire of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. I describe these matters inmy auditor s report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstance I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor s Report) Order 2016 ("the Order")issued by the

Central Government of India in terms of sub-section (11) of section 143 of the Act Igive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act I report that: a. I have sought andobtained all the information and explanations which to the best of my knowledge and beliefIre necessary for the purposes of my audit. b. In my opinion proper books of account asrequired by law have been kept by the company so far as it appears from my examination ofthose books; c. The Balance Sheet the Statement of Profit and Loss the Statement ofChanges in Equity and the Cash Flow Statement dealt with by this Report are in-agreementwith the books of accounts; d. In my opinion the aforesaid standalone financialstatements comply with the Indian Accounting Standards prescribed under Section 133 of theAct read with Companies (Indian Accounting Standard) Rules 2016.

e. On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 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 did not have pending litigations which would impact its financialposition.

(ii) The Company did not have any long term contract including derivative contract; assuch the question of commenting on any material foreseeable losses thereon does not arise;and

(iii) There has not been any occasion in case of the Company during the year underreport to transfer any sums to the investor education and protection fund. The question ofdelay in transferring such sums does not arise.

(iv) (a) The management has represented that to the best of its knowledge and beliefno funds (which are material either individually or in aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the intermediary shall whether directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company. ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in aggregate) have been received by theCompany from any person(s) or entity(ies) including foreign entities ("Fundingparties) with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to their notice that has caused us to believe thatthe representation under sub-clause (i) and (ii) or Rule 11 of the Companies (Audit andAuditors) Rules 2014 as provided in (a) and (b) above contain any materialmisstatement.

(v) The Company has not paid any dividend in the current financial year andhence the provisions of section 123 were not attracted.

For YATIN KUMAR SHAH
CHARTERED ACCOUNTANT
UDIN : 22159796AJSMJQ3982 Sd/-
( YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRITOR
DATED : 27TH MAY 2022 Membership Number 159796

ANNEXURE - TO THE AUDITORS REPORT

[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of my report of even date]

(i) The Company does not own any Property Plant & Equipment.

(ii) (a) The Company is a NBFC primarily engaged in nonbanking financial services.Accordingly it does not hold any physical inventories.

(b) The Company has not availed working capital limits from bank or financialinstitution during the year under report.

(iii) (a) The Company has made investments in and granted unsecured loans to acorporate during the year.

(b) In my opinion the investments made and the loan granted on the terms andconditions to the bodies corporates are not prima facie prejudicial to the interest ofthe Company.

(c) In the case of loans granted to the bodies corporate the borrower have been regularin the payment of the principal and interest as stipulated.

(d) In the case of loans granted there was no overdue amount for more-than 90 days.

(e) The company has not renewed or extended or fresh loan granted to settle theoverdues of existing loans given to the same parties.

(f) The company has not granted any loans or advances in the nature of loans withoutspecifying any term or period of repayment.

(iv) According to the information and explanations given to me the Company hascomplied with the provisions of section 185 and 186 of the Companies Act 2013 in respectof loans investments guarantees and security.

(v) In my opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of section 73 to 76 of the Companies Act2013 and rules framed there under are not attracted.

(vi) The Company engaged in the business of NBFC and therefore the provisions relatingto maintenance of cost records are not applicable.

(vii) (a) According to the information and explanations provided to me the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Goods and Service Tax Provident

Fund Investor Education Protection Fund Employees State

Insurance Income tax Sales Tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and other statutory dues as applicable to it with appropriate authoritiesand there are no undisputed arrears as at 31st March 2022 for a period of morethan six months from the date they become payable.

(b) According to the information and explanations given to me there are no disputedstatutory dues of Income tax G S T and Cess as at 31st March 2022.

(viii) In my opinion and according to the information and explanations given to me theCompany has not surrendered or disclosed any transaction not recorded in books ofaccount as income during the year in tax assessments under the Income Tax Act 1961.

(ix) (a) In my opinion and according to the information and explanation given to methe Company has not defaulted in repayment of loans or borrowings or in the payment ofinterest thereon to any lender.

(b) The company has not been declared willful defaulter by any bank or financialinstitution or other lender.

(c) The company has not taken/borrowed any term loans.

(d) The company has not utilized funds for long term purposes which were raised onshort term basis.

(e) The company has not taken any funds from any entity or person on account of or tomeet obligations of its subsidiaries associates or joint ventures.

(f) The company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies.

(x) (a) In my opinion and according to the information and explanation given to me thecompany has not raised any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year under review.

(b) In my opinion and according to the information and explanation given to me theCompany has not made any preferential allotment or private placement of shares orconvertible debentures (fully partially or optionally convertible) during the year.

(xi) (a) To the best of my knowledge and belief and according to the information andexplanations given to me no fraud on or by the Company has been noticed or reportedduring the course of my audit.

(b) To the best of my knowledge no report under sub-section (12) of section 143 of theCompanies Act has been filed by Auditors in Form ADT4 as prescribed under Rule 13 ofCompanies ( Audit & Auditors ) Rules 2014 with Central Government.

(c) To the best my knowledge and according to the information and explanations given tome no whistle blower companies have been received by the company during the year.

(xii) In my opinion and according to information and explanation given to me theCompany is not Nidhi Company.

(xiii) In my opinion and according to the information and explanations given to me alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where ever applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(xiv) (a) In my opinion and according to the information and explanations given to methe company has as internal audit system commensurate with the size and nature of itsbusiness.

(b) The reports of the Internal Auditors for the period under audit have beenconsidered by me.

(xv) In my opinion and according to the information and explanations given to me theCompany has not entered into any non-cash transactions with directors or persons connectedwith them.

(xvi) The Company has been registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

(xvii) In my opinion the company has not incurred cash losses in the financial yearhowever in the immediately preceding financial year the company had incurred cash loss.

(xviii) There has been no resignation of the statutory auditors of the company duringthe year.

(xix) In my opinion on the basis of the financial ratios ageing and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements my knowledge of the Board of Directors andmanagement plans no material uncertainty exists as on the date of the audit report thatthe company is capable of meeting its liabilities at the date of balance sheet as and whenthey fall due within a period of one year from the balance sheet date.

(xx) In my opinion and the information and explanation given to me the provisions ofsection 135 of the Companies Act are not attracted to the company as its net profit isbelow the threshold prescribed.

(xxi) In my opinion and the information and explanation given to me there are noqualification or adverse remarks by respective auditors in the Companies

(Auditor s Report) Order (CARO) reports of the companies included in the consolidatedfinancial statements.

For YATIN KUMAR SHAH
CHARTERED ACCOUNTANT
Sd/-
UDIN : 22159796AJSMJQ3982 ( YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRITOR
DATED : 27TH MAY 2022 Membership Number 159796

ANNEXURE -  TO THE AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (gthe Acth)

I have audited the internal financial controls over financial reporting of K KFincorp Limited ("the Company") as of 31 March 2022 in conjunction with myaudit of the 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 Reportingissued by the Institute of Chartered Accountants of India ( ICAI ). 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

My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls 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 I 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.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 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 my 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 31 March 2022 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 YATIN KUMAR SHAH
CHARTERED ACCOUNTANT
Sd/-
UDIN : 22159796AJSMJQ3982 ( YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRITOR
DATED : 27TH MAY 2022 Membership Number 159796

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