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K.P. Energy Ltd.

BSE: 539686 Sector: Infrastructure
NSE: N.A. ISIN Code: INE127T01013
BSE 00:00 | 14 Dec 209.25 9.25
(4.63%)
OPEN

207.95

HIGH

210.00

LOW

198.05

NSE 05:30 | 01 Jan K.P. Energy Ltd
OPEN 207.95
PREVIOUS CLOSE 200.00
VOLUME 1250
52-Week high 295.00
52-Week low 126.19
P/E 123.09
Mkt Cap.(Rs cr) 233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 207.95
CLOSE 200.00
VOLUME 1250
52-Week high 295.00
52-Week low 126.19
P/E 123.09
Mkt Cap.(Rs cr) 233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

K.P. Energy Ltd. (KPENERGY) - Auditors Report

Company auditors report

TO

THE MEMBERS OF K. P ENERGY LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of K. P ENERGY LIMITED("the company") which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of theseStandalone 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

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 thereunder.

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 Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on ourjudgment including the assessment of the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theStandalone Financial Statements that give true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Standalone Financial Statements.

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.

Opinion

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;

a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2018;

b) In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 (II) of Section 143 ofthe Act we give in the ‘Annexure-A' a statement on the matters specified in theparagraph 3 and 4 of the order to the extent applicable.

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 purposes 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 the Statement of Profit and Loss and Cash Flow Statement 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 written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 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"; and

g) With respect to the other matters included in the Auditor's Report in accordancewith Rule II of the Companies (Audit and Auditor's) Rules 20I4 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company has no pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses

iii. There has been no delay in transferring amounts required to be transferred toInvestor Education and Protection fund by the Company. However the company hastransferred the amount of Dividend of

Rs. 1710000/- declared as final dividend at Re. 0.20 per share in AGM Dt. 23/09/2017in separate bank account after the prescribed time limit as specified U/S. 123 of TheCompanies Act 2013 and also out of total dividend declared and paid Rs. 250/- wereunclaimed dividend which was also transferred to separate bank account after theprescribed time limit as per Sec. 124 of The Companies Act 2013.

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN : 120846W / W100289
Place : SURAT
Date : 30/05/2018 AMISH ASHVINBHAI SANGHAVI
M. NO. 101413
1001 1002 1003 RAJHANS BONISTA
RAM CHOWK GHOD DOD ROAD
SURAT-395007 GUJARAT

Annexure A referred to in paragraph 1 under the heading Report on other legal andregulatory requirements of our report of even date Re: K. P ENERGY LIMITED

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. All fixed assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given by the management the titledeeds of immovable properties included in fixed assets are held in the name of theCompany.

a. The management has conducted physical verification of inventory exceptgoods-in-transit at reasonable intervals during the year.

b. The procedures of physical verification of inventory followed by the management arereasonable 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 material discrepancieswere noticed on physical verification.

III According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013. Accordingly provisionsof clauses 3(iii) (a) (b) & (c) of the Order are not applicable to the Company andhence not commented upon.

IV In our opinion and according to the information and explanations given to us thecompany does not have any transactions to which the provisions of Section 185 apply. Thecompany has complied with the provisions of Section 186 of the Act with respect to theloans investments guarantees and security.

V The Company has not accepted any deposits from the public. Hence the provisions ofSections 73 to 76 or any other relevant provisions of The Companies Act and rules framedthere under are not applicable. The provisions of clause 3(v) of the Order are notapplicable to the Company and hence not commented upon.

VI We have broadly reviewed the books of accounts maintained by the company pursuant tothe rules made by the Central Government for the maintenance of the cost records U/S.148(1) of the Companies Act 2013 related to the activities carried out by the Company and are of the opinion that prima facie the specified accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

VII a. During the year the company has not deposited undisputed statutory dues inrespect of Provident Fund Income Tax Service tax GST Dividend Distribution Tax TDSetc. in time.

b. According to the information and explanations given to us Rs. 4222150/- areoutstanding for more than 6 months as on the balance sheet date in respect of undisputedSGST and CGST from the date they became payable.

VIII Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to banks and Financial Institution. The Company had no Debentures issued oroutstanding during the year.

IX The company did not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us the term loan bank CC & SLC facilitiesand mortgage loan taken by the company have been applied for the purposes for which theyraised.

X According to the information and explanations given to us no fraud by the company oron the company by its officers or employees has been noticed or reported during the courseof our audit.

XI According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

XII In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly the provisions of clause 3(xii) of the Orderare not applicable to the Company and hence not commented upon.

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 Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the notes to the standalone financial statements asrequired by the applicable accounting standards.

XIV According to the information and explanations given to us and based on ourexaminations of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

XV According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3(xv) of the Order are not applicable and hence not commented upon.

XVI According to the information and explanations given to us the company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act 1934 andhence not commented upon.

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN : 120846W / W100289
Place : SURAT
Date : 30/05/2018 AMISH ASHVINBHAI SANGHAVI
M. NO. 101413
1001 1002 1003 RAJHANS BONISTA
RAM CHOWK GHOD DOD ROAD
SURAT-395007 GUJARAT

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 have audited the internal financial controls over financial reporting of K. P ENERGYLIMITED ("The Company") as of 31 March 2018 in conjunction with our audit of theStandalone 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

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 judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.

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 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 31 March 2018 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. However we are of the opinion that the company can make theInternal Controls on Financial Reporting more adequate and more effective considering theinherent risk and nature and size of the business activities carried out by the company

for K A SANGHAVI AND CO LLP
Chartered Accountants
FRN : I20846W / WI00289
Place : SURAT
Date : 30/05/2018 AMISH ASHVINBHAI SANGHAVI
M. NO. I0I4I3
1001 1002 1003 RAJHANS BONISTA
RAM CHOWK GHOD DOD ROAD
SURAT-395007 GUJARAT