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KGN Industries Ltd.

BSE: 531612 Sector: Others
NSE: N.A. ISIN Code: INE196C01022
BSE 00:00 | 13 Jun 1.69 0
(0.00%)
OPEN

1.70

HIGH

1.70

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1.69

NSE 05:30 | 01 Jan KGN Industries Ltd
OPEN 1.70
PREVIOUS CLOSE 1.69
VOLUME 20
52-Week high 2.56
52-Week low 1.50
P/E
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.70
CLOSE 1.69
VOLUME 20
52-Week high 2.56
52-Week low 1.50
P/E
Mkt Cap.(Rs cr) 38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KGN Industries Ltd. (KGNINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

KGN INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of KGN INDUSTRIES LIMITED("the Company) which comprise the Balance Sheet as at 31st March 2017 thestatement of Profit & Loss and Cash Flow Statement for the year ended and a summary ofSignificant accounting policies and other explanatory information.

Management's Responsibility for the 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 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.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' 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 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the 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:

a) In the case of the Balance Sheet of the state of affairs of the company as on 31stMarch 2017.

b) In the case of the Profit & Loss Account Statement Balance of the profit forthe year ended on 31st March 2017.

c) In the case of the Cash Flow Statement of the Cash Flows for the year ended on 31stMarch 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we enclose in the Annexure hereto a statement specified inparagraph 4 and 5 of the said order.

2. As required by section 143 (3) of the Act we report that:

(i) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit ;

(ii) In our opinion proper books of accounts as required by law have been kept by thecompany so far as it appears from our examination of those books;

(iii) The Balance Sheet and Profit & Loss Statement Balance dealt with by thisreport are in agreement with the books of account;

(iv) On the basis of written representations received from the directors as on March312017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164 (2) of theAct.

(v) 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 unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

(vi) 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:

a. The Company has disclosed the impact of pending litigations its financial positionin its standalone Ind AS financial statements;

b. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company except in cases where in disputesrelating to the ownership of the underlying shares have remained unresolved;

d. The Company has provided requisite disclosures in the standalone Ind AS financialstatements as regards its holding and dealings in specified Bank Notes as defined in theNotification S. O. 3407(E) dated the 8 November 2016 to 30 December 2016. Based on auditprocedures performed and the representations provided to us by the management we reportthat the disclosures are in accordance and as produced to us by the Management.

3. As required by the Companies (Auditor's Report) Order 2016 (the "Order")issued by the Central Government in terms of section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 & 4 of the Order.

For Kirit & Co.
Chartered Accountant
Kirit Kumar
Proprietor
Place : Ahmedabad M.No. 038047
Date : 30th May 2017 FRN: 132282W

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date:

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

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2. (a) The Inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3. (a) The Company has granted unsecured loan to its Subsidiary Companies and partiesin the register maintained under Section 189 of the Companies Act 2013. The Maximumamount granted during the year and year end balances of loan to such subsidiaries were asper details given below. The terms and conditions of such loans are not prima facieprejudicial to the interest of the Company.

Sr.

No.

Name of the Party Relation with the Company Maximum

Outstanding

Closing Balance As on 31/03/2015
(in Rs.) (in Rs.)
1. KGN Projects Limited Subsidiary Company 1611135/- 1611135/-
2. KGN Enterprises Limited Associates 141766985/- 138216175/-

(b) The Company has not taken loans secured or unsecured from the companies or otherparties covered in the register maintained u/s 189 of the Companies Act 2013

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6. 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 Act in respect of theactivities carried on by the company.

7. (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 Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 312017 for a period of more than six months fromthe date on when they become payable.

b) According to the information and explanation 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.

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

9. Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10. 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.

11. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

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

14. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

15. 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 him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For Kirit & Co.
Chartered Accountant
Kirit Kumar
Proprietor
Place : Ahmedabad M.No. 038047
Date : 30th May 2017 FRN: 132282W