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KG Petrochem Ltd.

BSE: 531609 Sector: Industrials
NSE: N.A. ISIN Code: INE902G01016
BSE 00:00 | 19 Jul 101.95 0
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101.95

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101.95

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NSE 05:30 | 01 Jan KG Petrochem Ltd
OPEN 101.95
PREVIOUS CLOSE 101.95
VOLUME 50
52-Week high 151.00
52-Week low 85.20
P/E 6.81
Mkt Cap.(Rs cr) 53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 101.95
CLOSE 101.95
VOLUME 50
52-Week high 151.00
52-Week low 85.20
P/E 6.81
Mkt Cap.(Rs cr) 53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KG Petrochem Ltd. (KGPETROCHEM) - Auditors Report

Company auditors report

To

The Members of

KG Petrochem Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of KG PetrochemLimited ('the

Company') which comprises the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statement

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 thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 there under.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirector as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidences we have obtained are 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 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 March31 2017 and its Profit and Cash Flowfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bytheCentral Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the Annexure A statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 purpose 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 Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards notified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a Director in terms of 164(2)of the Companies Act 2013;

(f) With respect to the adequate 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) Company does not have any pending litigations which would impact its financialposition.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

(iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to December 2016 on the basis of information available with the Company. Based onaudit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management. (Refer Note no. :- 2.27)

For R Sogani & Associates
Chartered Accountants
FRN: 018755C
Place :Jaipur (BHARAT SONKHIYA )
PARTNER
Date : 30-05-2017 Membership No: 403023

ANNEXURE - A REFERRED TO IN THE AUDITOR'S REPORT ON THE ACCOUNTS OFKG

PETROCHEM LIMITEDFOR THE YEAR ENDING 31 MARCH 2017

As required by the Companies (Auditor's report) Order 2016 issued by the CentralGovernment of India in terms of section 143(11)of the Companies Act 2013 we report that:

1In respect of fixed assets:

a) According to information and explanation given to us fixed asset register of theCompany has been properly maintained.

b) According to information and explanation given to us all the fixed assets have beenphysically verified by the management during the year at reasonable intervals.

c) According to information and explanation given to us title deeds of immovableproperties are held in the name of the Company.

2 In respect of its inventories:

(a) As explained to us the inventory has been physically verified by the management atregular intervals during the year.

(b) In our opinion and according to the information and explanations given to us theprocedures followed by the management for physical verification of inventory arereasonable and adequate in relation to size of the Company and nature of its business.

(c) According to information and explanation given to us all discrepancies have beenrectified by the Company and accordingly considered in books of accounts.

3 In respect of loans:

According to the information and explanations given to us the Company has not grantedany loans secured and unsecured to companies firms and other parties covered in theregister maintained under section 189 of Companies Act 2013.

4 As per information and explanations provided to us in respect of loans investmentsand guarantees provisions of Section 185 and 186 of the Companies Act 2013 have beencomplied with.

5 According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of the directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any relevant provisions ofthe Companies Act 2013 and the rules made there under.

6. In respect of cost records:

We have been explained that the maintenance of cost records has not been prescribed bythe Central Government under Section 148(1) of the Companies Act2013 for the period underreview for any of the products.

7 In respect of statutory dues:

(A)The Company is generally regular in depositing with the appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education Protection FundEmployees' State Insurance Income Tax Sales Tax Value Added Tax Wealth Tax ServiceTax Custom Duty Excise Duty Cess and other material statutory dues as recorded inbooks of accounts applicable to it.

(b) According to the information and explanations given to us no disputed amounts arepayable in respect of Income Tax Wealth Tax Sales Tax Value Added Tax Service TaxCustoms Duty and Excise Duty which have not been deposited on account of any disputeexcept the following:

Nature of Dispute Nature of the dues Amount (in Rs.) Period to which the amount relates Forum where dispute is pending
Finance Act 1994 (Service Tax) Service Tax 3375730/- FY 2005-06 to FY 2008-09 CESTAT

8 In respect of repayment of dues:

As per information and explanation given to us the company has not defaulted inrepayment of any amount to a financial institution or bank or debenture holders.

9. In our opinion and according to the information and explanation given to us termloans have been applied for the purposes for which they were obtained.

10 According to the information and explanations provided to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

11 In respect of managerial remuneration:

According to the information and explanations given to us we report that managerialremuneration has been paid in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act 2013.

12 In respect of Nidhi Company:

The Company is not a Nidhi Company. Therefore this clause is not applicable to theCompany.

13. In respect of related parties:

All transactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the Accounting Standards and Companies Act 2013.

14 In respect of preferential allotment / private placement of shares:

The company has not made any preferential allotment / private placement of shares orfully or partly convertible debentures during the year under review.

15 In respect of Non-cash transactions with directors:

The Company has not entered into any non-cash transactions with directors or personsconnected with him.

16 The company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For R Sogani & Associates
Chartered Accountants
FRN: 018755C
Place :Jaipur (BHARAT SONKHIYA )
PARTNER
Date : 30-05-2017 Membership No: 403023

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE

STANDALONE FINANCIAL STATEMENTS OF KG PETROCHEM LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KGPetrochem Limited ("the Company") as of March 31 2017 in conjunction with ouraudit 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 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 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 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 judging by the nature andquantum of transactions appearing in the financial statements an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 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 R Sogani & Associates
Chartered Accountants
FRN: 018755C
Place :Jaipur (BHARAT SONKHIYA )
PARTNER
Date : 30-05-2017 Membership No: 403023