The Members of K K FINCORP LIMITED (Formerly Kuberkamal Industrial Investments Ltd.)
Report on the Standalone Financial Statements Opinion
I have audited the financial statements of K K FINCORP LIMITED (Formerly KuberkamalIndustrial Investments Ltd.) (the Company) which comprise the balance sheetas at March 31 2020 and the statement of profit and loss (including other comprehensiveincome) statement of changes in equity and statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (Collectively referred to asstandalone 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 2020 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 of affairs of the company as at 31stMarch 2020
b. In the case of the statement of profit and loss of the Profit (financialperformance including other comprehensive income) changes in equity; and
c. In the case of the cash flow statement of the cash flow statement for the yearended 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.
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 financial statements does not cover the other information and I donot express any form of assurance conclusion 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') specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that Ire operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related. to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic 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 financialstatements whether due. to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for my opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3} ofthe Act I am also responsible for expressing my opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's uses of the going concern basisof accounting 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. I consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluated the effect of any identified misstatements in the financial statements.
I communicate with those charged with governance regarding among other mattersthe planned 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 havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear on myindependence and where applicable related safeguards.
From the matters communicated with those charged with governance I determinethose matters that Ire of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. I describe thesematters in my auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstance I determine that a matter should notbe communicated in my report because the adverse consequences of doing so would reasonablybe expected 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 ofthe Act I give in the "Annexure A a statement on the matters specified inparagraphs 3 and 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 and obtained all the information and explanations which to the best ofmy knowledge and belief Ire necessary for the purposes of my audit.
b. In my opinion proper books of account as required by law have been kept by thecompany so far as it appears from my examination of those books;
c. The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in-agreement with thebooks of accounts;
d. In my opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with Companies (IndianAccounting Standard) Rules 2016.
e. On the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 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 my opinionand to the best of my information and according to the explanations given to me :
i. The Company did not have any pending litigations which would impact its
ii. The Company did not have any long term contract including derivative
contract; as such the question of commenting on any material foreseeable losses thereondoes not arise.
iii. There has not been any occasion in case of the Company during the year
under report to transfer any sums to the investor education and protection fund. Thequestion of delay in transferring such sums does not arise.
| ||For YATIN KUMAR SHAH |
| ||CHARTERED ACCOUNTANT |
| ||Sd/- |
|UDIN:20159796AAAAAT4181 ||( YATIN KUMAR SHAH) |
|PLACE : MUMBAI ||PROPRIETOR |
|DATED : 30th JULY 2020 ||Membership Number 159796 |
ANNEXURE - A TO THE AUDITORS' REPORT
[Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of my report of even date]
(i) The Company does not own any fixed assets.
(ii) The Company is a NBFC primarily engaged in nonbanking financial services.Accordingly it does not hold any physical inventories.
(iii) The Company has granted loans to corporates listed in the register maintained u/s189 of the Companies Act 2013.
(a) In my opinion the rate of interest and other terms and conditions on which loanhad been granted to the bodies corporate listed in the register maintained u/s 189 of theact Ire not prima facie prejudicial to the interest of the Company.
(b) In the case of loans granted to the bodies corporate listed in the registermaintained u/s 189 of the Act the borrower have been regular in the payment of theprincipal and interest as stipulated.
(c) There are no overdue amount in respect of the loan granted to a body corporatelisted in register maintained u/s 189 of the Act.
(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 provisions of the Companies Act 2013 and rules framed thereunder 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 is generally regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Investor Education Protection Fund Employees'State Insurance Income tax G S T Cess and other statutory dues as applicable to it withappropriate authorities and there Ire no undisputed arrears as at 31st March2019 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to me there Ire no disputedstatutory dues of Income tax G S T and Cess as at 31st March 2020.
(viii) In my opinion and according to the information and explanations given to me theCompany has neither availed any loans from financial institutions banks Government norissued any debentures.
(ix) 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.
(x) 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.
(xi) In my opinion and according to information and explanations given to me theCompany paid or provided managerial remuneration with requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.
(xii) In my opinion and according to information and explanation given to me theCompany is not Nidhi Company. Accordingly paragraph 3(XII) of the order is notapplicable.
(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) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.
(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 then.
(xvi) The Company has been registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
| ||For YATIN KUMAR SHAH |
| ||CHARTERED ACCOUNTANT |
| ||Sd/- |
| ||(YATIN KUMAR SHAH) |
|PLACE : MUMBAI ||PROPRIETOR |
|DATED : 30th JULY 2020 ||Membership Number 159796 |
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)
I have audited the internal financial controls over financial reporting of K K FincorpLimited ( Formerly Kuberkamal Industrial Investments Ltd. ) (the Company) asof 31 March 2020 in conjunction with my audit of the financial statements of the Companyfor 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 (theGuidance 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.
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 2020 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/- |
| || ||(YATIN KUMAR SHAH) |
|PLACE ||: MUMBAI ||PROPRIETOR |
|DATED: ||30th JULY 2020 ||Membership Number 159796 |