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Kapil Raj Finance Ltd.

BSE: 539679 Sector: Financials
NSE: N.A. ISIN Code: INE332Q01015
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NSE 05:30 | 01 Jan Kapil Raj Finance Ltd
OPEN 17.30
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VOLUME 1730
52-Week high 18.20
52-Week low 6.41
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
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Sell Price 0.00
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OPEN 17.30
CLOSE 17.30
VOLUME 1730
52-Week high 18.20
52-Week low 6.41
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kapil Raj Finance Ltd. (KAPILRAJFINANC) - Auditors Report

Company auditors report

TO THE MEMBERS OF KAPIL RAJ FINANCE LIMITED

I. Report on the Audit of the Standalone financial Statements

1. Opinion

A. We have audited the accompanying Standalone Financial Statements of KAPIL RAJFINANCE LIMITED ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred toas "the Standalone Financial Statements").

B. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements g ive the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Indi's") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

2. Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence. We have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no matters to bedescribed as key audit matters.

4. Information Other than the Standalone Financial Statements and Auditor's ReportThereon

A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexureto Board's Report CorporateGovernance and Shareholder's Information to the extent applicable but does not includethe Standalone Financial Statements and our auditor's report thereon. Our opinion on thestandalone financial statements does not over the other information and we do not expressany form of assurance conclusion thereon.

B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.

5. Management's Responsibility for the Standalone Financial Statements

A. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Indi's and other accounting principles generally accepted in India. 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

B. In preparing the Standalone Financial Statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to dose.

The Board of Directors is responsible for overseeing the Company's financial reportingprocess.

6. Auditor's Responsibilities for the Audit of the Standalone Financial Statements

A. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

i) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that insufficient and appropriate to provide abasis for our 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.

ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

iv) Conclude on the appropriateness of management's use 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 we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

C. 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 Standalone Financial Statements maybe influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

D. We 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 we identify during our audit.

E. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

F. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

II. Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 it appears from our examination of those books.

C. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account

D. In our opinion the aforesaid standalone financial statements comply with theIndia's specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014

E. On the basis of the written representations received from the directors as on March31 2022 take non record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

G. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

H. 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company does not have any pending litigations which would impact its financialposition.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv)

a. The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the 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 or entity including foreignentity ("Intermediaries") With the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("ultimate beneficiaries") or provide any guarantee security or thelike 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 bycompany from any person or entity including foreign entity ("Funding parties")with the understanding whether recorded in writing or otherwise that the company shall.Whether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding party ("UltimateBeneficiaries") or provide any guarantee Security or the like on behalf of UltimateBeneficiaries;

c. Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material mis-statement.

v) During the year company has not declared or paid dividend during the year which isin compliance with section 123 of the Companies Act 2013.

2. As required by the Companies (Auditor's Report) Order 2020("the Order")issued by the Central

Government in terms of Section 143(11) of the Act we give in "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in 1(f) under ‘Report on Other Legal and Regulatory Requirements'Section of our reports to the Members of KAPIL RAJ FINANCE LIMITEDof even date)

Report on the Internal Financial Controls under Clause (i) of sub-section 3 Section 143of the Companies Act 2013 ('the Act')

We have audited the internal Financial Controls over financial reporting of KAPIL RAJFINANCE LIMITED ("the Company") as at March 31 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 the Company's policies the safeguardingof its 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.

Auditor's 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 the 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 we 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.

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 auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of 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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of the Management and directors of the Company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company's assets that could have a material effecton 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 31st 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.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal & RegulatoryRequirements' section of our report to the Members of KAPIL RAJ FINANCE LIMITEDof evendate)

Pursuant to Companies (Auditors Report) Order 2020

To the best of our information and according to the explanations provided to us by thecompany and the books of accounts and records examined by us in the normal course ofAudit we state that:

(i) (a) As explained to us There are no property Plant and Equipments and IntangibleAssets in the Company. Hence reporting under clause 3(i)(a) is not applicable.

(b) As explained to us There are no property Plant and Equipments and IntangibleAssets in the Company. Hence reporting under clause 3(i)(b) is not applicable.

(c) As explained to us there is no immovable property held by the company.

(d) The Company has not revalued any of its Property plant and Equipments andIntangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against thecompany as at March 31st 2022 for holding any benami property under the BenamiTransactions (Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) As explained to us the company holds inventory of shares and those are indemat

form so it is not possible to physically verifythe inventory by the management.

(b) The Company has not been sanctioned working capital limits in excess of Rs. 5crores in aggregate at any points of time during the year from banks or financialinstitutions on the basis of security of current assets and hence reporting under clause3(ii)(b) of the Order is not applicable.

(iii) The Company has granted loans secured or unsecured to companies firms LimitedLiability Partnership or other parties covered in the register maintained under section189 of the Act. Accordingly the provisions of clause 3(iii) (a) to (c) of the Order areapplicable to the Company.

1. The Terms and conditions of the grant of such loan are prima facie not prejudicialto the company's interest.

2. The schedule of repayment of principal and payment of interest has been stipulatedand the repayments and receipts are regular.

3. In respect of the loans granted by the company there is no overdue amount remainingoutstanding as at the Balance sheet date.

4. No loan granted by the company which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the overdues of existing loans givento same parties.

5. The Company has not granted any loans or advances in the nature of loans either

repayable on demand or without specifying any terms or period of repayment during theyear. Hence reporting under clause 3(iii)(f) is not applicable.

(iv) In our opinion and according to the information ad explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.

(v) The company has not accepted any deposit or amounts which are deemed to be depositsand hence the directives issued by the Reserve Bank of India and the provisions of Section73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance ofDeposit) Rules 2015 with regard to the deposits accepted from the public are notapplicable. Hence reporting under 3(v) of the order is not applicable.

(vi) As informed to us the maintenance of cost records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Companies Act in respectof the activities carried on by the company.

(vii) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including provident fund Employees StateInsurance Income-Tax Sales Tax Service Tax Duty of Customs Duty of Excise ValueAdded Tax Goods and Services Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2022 for a periodof more than six months from the date on when they become payable.

(b) According to the information and explanations given to us there are no dues ofIncome Tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.

(viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act. 1961.

(ix) a. The Company has not taken any loans or other borrowings from any lender. hencereporting under clause 3(ix)(a) of the Order is not applicable.

b. The Company has not been declared wilful defaulter by any bank or financialinstitution or government or government authority.

c. The company has not taken any long term loan during the year and there are nooutstanding term loans at the beginning of the year and hence reporting under clause3(ix)(c') of the Order is not applicable.

d. On an overall examination of the financial statements of the company no funds wereraised for short term by the company. Hence reporting under this clause is not applicable.

e. On an overall examination of the financial statements of the company the Companyhas not taken any funds from the entity or person on account of or to meet the obligationsof its subsidiaries.

f. The company has not raised any loans during the year and hence reporting of theclause 3(ix)(f) is not applicable.

(x) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not raised money by way of initial public offeror further public offer including debt instruments and term loans. Also Company has notmade any preferential allotment or private placement of the shares or convertibledebentures (fully or partly or optionally). Accordingly the provisions of clause 3(x) ofthe order are not applicable to the company and hence not commented upon.

(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year. Also there were nowhistle blower complaints received by the company which could be considered whiledetermining the Nature Timing and Extent of the Audit procedures. hence reporting underclause 3(xi) is not applicable.

(xii) In our opinion the company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company.

(xiii) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xiv) a. In our opinion the company has an adequate internal audit system commensuratewith the size and the nature of its business.

b. We have considered the internal audit reports for the year under audit issued tothe company during the year and till date in determining the nature timing and extent ofour audit procedures.

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with them. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

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

(b) The company has not conducted any Non-banking Financial or Housing Financeactivities without a valid Certificate of Registration (CoR) from Reserve bank of IndiaAct 1934;

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India.

(d) There are no CIC as a part of the group.

(xvii) The company has not incurred Cash losses during the financial year covered byour audit and the immediately preceding financial year.

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

(xix) On the basis of financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit reports indicating the company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tofuture viability of the company. We further state that our reporting is based on the factsupto the date of the audit report and we neither give any guarantee nor any assurance thatall liabilities falling due within a period of one year from the balance sheet date willget discharged by the company as they fall due.

(xx) The CSR requirements are not applicable on the company. Hence reporting underclause 3(xx) is not applicable.

For: GAMS & Associates LLP

Chartered Accountants

FRN ON500094

UDIN: 22088218AKAUHH5800

Sd/-

CA Anil Gupta

(Partner)

M. No. 088218 Place: New Delhi

Dated: 31/05/2022

.