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Key Corp Ltd.

BSE: 507948 Sector: Financials
NSE: N.A. ISIN Code: INE130F01016
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NSE 05:30 | 01 Jan Key Corp Ltd
OPEN 10.60
PREVIOUS CLOSE 10.60
VOLUME 300
52-Week high 15.20
52-Week low 8.55
P/E 5.64
Mkt Cap.(Rs cr) 6
Buy Price 9.60
Buy Qty 2000.00
Sell Price 11.18
Sell Qty 198.00
OPEN 10.60
CLOSE 10.60
VOLUME 300
52-Week high 15.20
52-Week low 8.55
P/E 5.64
Mkt Cap.(Rs cr) 6
Buy Price 9.60
Buy Qty 2000.00
Sell Price 11.18
Sell Qty 198.00

Key Corp Ltd. (KEYCORP) - Auditors Report

Company auditors report

TO

THE MEMBERS OF KEY CORP LIMITED

REPORT ON THE FINANCIAL STATEMENTS:

1) OPINION

We have audited the accompanying financial statements of KEY CORP LIMITED ('theCompany') which comprise the Balance Sheet as at 31st March 2019 the Statement of Profit& Loss and the Cash Flow statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2019 and its profit and its cash flows for the year ended on that date.

2) BASIS FOR OPINION

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respect. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

3) KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

DESCRIPTION OF KEY AUDIT MATTER

ACCOUNTING FOR PAYMENT OF GRATUITY.

The provision for retirement benefits for gratuity is made as per the Payment ofGratuity Act 1972. The Accounting Standard 15 "Employees Benefits" prescribedby the Central Government is applicable to the company in its entirely as the company is alisted company.

In formulating the accounting policy regarding employees benefits the management ofthe company were motivated by the fact that average number of employees at any time duringthe year were less than 50. In similar circumstances unlisted companies have beenpermitted to calculate and account for the accrued liability under the head (Gratuity) bysome other rational method. Provision of the Payment of Gratuity Act 1972 gives one suchmethod.

The management of the company decided to continue with the same accounting policy as itstill feels that the size of the company does not make it feasible to provide gratuity byway of Actuarial Valuation.

4) RESPONSIBILITES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIALSTATEMENTS

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the company in accordance with the accountingprinciples generally accepted in India including the accounting standard specified undersection 133 of the Act read with the rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selections and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

5) AUDITOR'S REPONSIBILITY:

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

6) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

I) 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 we give in the Annexure "A" a statement on the matters specified in theparagraph 3 and 4 of the order to the extent applicable.

II) 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 it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account:

d. In our opinion the aforesaid financial statement comply with the AccountingStandards specified under section 133 of the act read with rule 7 of the Companies(Accounts) Rules 2014 except non compliance of AS-‘15' "EmployeeBenefits" to the extent that the provisions for retirement benefits for Gratuity aremade as per The Payment of Gratuity Act 1972 and not in the manner prescribed in AS-15(See Note No. A 03 (ii) of Notes on Account);

e. On the basis of written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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" and;

g. With respect to other matter to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors') Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us and as confirmed bythe management of the company

i) There are no pending litigations on the company in respect of which a provision isrequired to be made.

ii) The company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts;

iii) There are no amounts required to be transferred to the Investor Education andProtection Fund by the company.

For VINAYAK TANDON & ASSOCIATES
Chartered Accountants
(FRN: 006751C)
(CA. VINAYAK TANDON)
Place : Kanpur Partner
Dated : 15th May 2019 Membership No.: 072968

ANNEXURE "A" Referred to in Paragraph 6(I) of our Independent Auditor'sReport to the members of KEY CORP LIMITED on the financial statements for the year ended31 March 2019.

Based on such checks and other generally accepted auditing procedures carried on by usand according to the information and explanations given to us we report that

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

b) All the assets have been physically verified by the Management during the year andthere is a regular programme of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No discrepancies werenoticed on such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of "Key Leasing and Finance Limited" the erstwhile name of theCompany.

ii) During the year the company had no inventory in the nature of stock on hirehence paragraph 3 (ii) of the order is not applicable.

iii) The Company has not granted any loans to body corporate covered in the registermaintained under section 189 of the Companies Act 2013 ("the Act").

iv) In our opinion and according to information and explanations given to us theCompany has not granted any loan to directors etc. prescribed U/S 185 of the CompaniesAct 2013. Further the Company is a Non Banking Financial Company hence Section 186 ofthe Companies Act 2013 is not applicable to the Company.

v) The company has not accepted any deposits from the public.

vi) The Central Government has not prescribed the maintenance of the cost records undersection 148(1) of the Act for any of the services rendered by the company.

vii) a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund Income tax Wealth tax Service tax and othermaterial statutory dues applicable to it. However the Employees State Insurance Act ispresently not applicable to the company

Further to our information no undisputed amounts in respect of Income tax wealth taxand other material statutory dues applicable to it were in arrears as at 31.03.2019 for aperiod of more than six months from the date these became payable.

b) There are no dues of income tax wealth tax service tax & other materialstatutory dues which are required to be deposited on account of any dispute. Custom dutysales tax excise duty & cess are not applicable to the Company.

viii) The Company has not defaulted in the repayment of dues to financial institutionsbanks or debenture holders during the year.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

x) According to information and explanations given to us no material fraud on or by theCompany has been noticed or reported during the course of our audit.

xi) According to information and explanations given to us and based on our examinationof the records of the Company the company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule 'V' to the Act.

xii) According to information and explanations given to us the Company is not a NidhiCompany. Accordingly paragraph 3(xli) of the Order is not applicable.

xiii) According to information and explanations given to us and based on ourexamination of the records of the Company transaction with related parties as identifiedby the management of the company are in compliance with section 177 and 188 of the Actwhere applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

xiv) According to information and explanations given to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xv) According to information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non cash transactions withdirectors or persons connected with him.

xvi) The Company is a Non Banking Financial Company requiring it to be registered underSection 45IA of the Reserve Bank of India Act 1934. The Company has obtained the saidregistration.

For VINAYAK TANDON & ASSOCIATES
Chartered Accountants
(FRN: 006751C)
(CA. VINAYAK TANDON)
Place : Kanpur Partner
Dated : 15th May 2019 Membership No. : 072968

Annexure 'B' to the Auditors' Report referred to in paragraph 5(II)f of our IndependentAuditors' Report to the members of Key Corp Limited on the financial statements for theyear ended 31st March 2019.

Report on the internal financial controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Key CorpLimited ("the Company") as of 31st March 2019 in conjunction with our audit ofthe 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.

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 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 respect.

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 financial statements whether due to fraud or error.

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 details 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 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 31st March 2019 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 VINAYAK TANDON & ASSOCIATES
Chartered Accountants
(FRN: 006751C)
(CA. VINAYAK TANDON)
Place : Kanpur Partner
Dated : 15th May 2019 Membership No.: 072968