M/s KINETIC TRUST LIMITED
Report on Financial Statements
We have audited the accompanying Financial Statements of M/s KINETIC TRUST LIMITEDwhich comprise the Balance Sheet as at 31st March 2018 the Statement of Profit& Loss (including Other Comprehensive Income) the Statement of Changes in Equity andthe Cash Flow Statement for the period then ended and a summary of significant accountingpolicies and other explanatory information.
Management 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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.
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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. 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 standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
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 of the state of affairs of the Companyas at 31st March 2018 and its profit total comprehensive income the changes in equityand its cash flows for the year ended on that date.
Report on other Legal & Regulatory requirements
1) As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Companies Act2013 and on the basis of such checks of the books and records of the company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure A a statement specified in paragraph 3 and 4 of the said order.
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 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 books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
(f) with respect to the adequacy of internal controls over financial reporting of theCompany and operating effectiveness of such controls refer to our separate report inAnnexure-B; and
(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) 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 contractsfor which 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.
3) As required by the Non Banking Financial Companies Auditor's Report (Reserve Bank)directions and on the basis of such checks of the books and records of the company as weconsidered appropriate and according to the information and explanations given to us wegive our observations as under:-
a) (i) The Company is registered as NBFC with the Reserve Bank of India as required U/S45-A of the Reserve Bank of India Act 1934 and the Certificate of the registration hasbeen granted.
(ii) The company is entitled to hold COR issued by Bank in terms its assets and incomepatterns as on 31 March of the applicable year.
(iv) This company is classified as Loan Company therefore this clause is notapplicable to the company.
(v) This company is not classified as NBFC Micro Finance Institutions therefore thisclause is not applicable to the company.
b) As the Company is not accepting/holding public deposits clause 'B' of paragraph 3of the NBFC Auditor's Report (Reserve Bank) Directions 2008 is not applicable to thiscompany.
c) (i) The Board of Directors have passed a resolution for the non-acceptance of anypublic deposits.
(ii) The Company has not accepted any public deposits during the relevant year.
(iii) The Company has complied with the prudential norms relating to incomerecognition accounting standards assets classification and provisioning for bad &doubtful debts as applicable to it.
(iv) As the Company is not a "Systematically Important Non Deposit TakingNBFC" Sub-clause 'IV' of paragraph C of the NBFC Auditor's Report (Reserve Bank)Directions 2008 is not applicable to this company.
d) The company has not received any specific direction from banks clause 'D' of theparagraph 3 of NBFC Auditor's Report (Reserve Bank) Directions 1998 is not applicable tothe company.
For Neelesh Kumar Jain
M. No.: 511815
Place: New Delhi
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF "KINETIC TRUST LIMITED - REPORT UNDER THE COMPANIES(AUDITOR'S REPORT) ORDER 2016.
In terms of the information and explanations sought by us and given by the company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that: -
1) a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets atreasonable intervals and no material discrepancies were noticed on such verification.
c) According to information & explanation given to us and on the basis of ourexamination of the records of the company all the immovable properties are held in thename of the company during the year under references.
2) The company is NBFC primarily in financial services. Accordingly the company holdinvestment in securities and no discrepancies found by the management of the company.
3) As explained to us the company had not granted any loans secured or unsecured toany companies firms Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Act.
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 act with respect tothe loans investments guarantees and security during the year under reference.
5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under wherever applicable.
6) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013.
7) a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund investoreducation protection fund employees' state insurance income tax sales tax service taxcustom duty excise duty cess and other statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of income tax service tax sales tax custom duty excise duty cessand other statutory dues were in arrears as at 31st March 2018 for a period of more thansix months from the date they became payable.
b) According to the information and explanations given to us there are no materialdues of income tax service tax sales tax custom duty excise duty cess and otherstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute.
8) The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable.
9) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.
10) Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.
11) According to the information and explanations give to us and based on ourexamination of the records of the company no managerial remuneration has been paid orprovided by the company. Accordingly paragraph 3(xi) of the Order is not applicable.
12) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13) According to the information and explanations given to us and based upon the auditprocedures performed and according to the information and explanations given to us alltransactions with related parties are in compliance with sections 177 and 188 of CompaniesAct 2013 where applicable and the details have been disclosed in the Financial statementsetc. as required by the applicable accounting standards.
14) According to the information and explanations give to us and based on ourexamination 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 under review.
15) According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16) The company is already registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For Neelesh Kumar Jain
M. No.: 511815
Place: New Delhi