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KLG Capital Services Ltd.

BSE: 530771 Sector: Financials
NSE: N.A. ISIN Code: INE929C01018
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NSE 05:30 | 01 Jan KLG Capital Services Ltd
OPEN 10.48
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VOLUME 1
52-Week high 13.92
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Mkt Cap.(Rs cr) 3
Buy Price 0.00
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OPEN 10.48
CLOSE 10.48
VOLUME 1
52-Week high 13.92
52-Week low 6.50
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KLG Capital Services Ltd. (KLGCAPITAL) - Auditors Report

Company auditors report

To the Members of KLG Capital Services Limited Report on the Standalone Ind ASFinancial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of KLG CapitalServices Limited ("the Company") which comprise the Balance Sheet as at March31 2021 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 to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2021 the profit andtotal comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sresponsibilities for the audit of the standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Ind As Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the Standalone Ind AsFinancial Statements as a whole and in forming our opinion there on and we do notprovide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Sr. Key Audit Matter no. Auditor's Response
1 Evaluation of uncertain tax positions Principal Audit Procedures
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Refer Note 9 to the Standalone Financial Statements Obtained details of completed tax assessments and demands for the year ended March 312021 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 12019 to evaluate whether any change was required to management's position on these uncertainties .
2 Impact of Covid 19 on Audit
Due to outbreak of pandemic Covid 19 and Consequent country wide lockdown enforced by Government of India. Due to this we could not carry out normal audit procedures by visiting the register office and audit was carried out using " Work from Home" approach. This is considered as Key Audit Matter Since alternate audit procedure were performed for carrying out audit Due to " Work from Home" approach adopted we performed following alternative audit procedures :
• Installation of Virtual Private Network on laptops of team members.
• Remote Access to Tally erp9 - financial accounting software.
• Various data and confirmation were received either electronically through email or through data sharing on drive.
• For various audit procedures company was placed on scanned copies of original document shared with us electronically.
• Interview / discussion with client via video conferencing / call conferencing and other verbal communications.

Information Other than the Standalone Ind AS Financial Statements and Auditor's ReportThereon

The company's Board of Directors is responsible for the other information. The otherinformation obtained at the date of this auditor's report is other information included inBoard of Directors Report including Annexure to such report but does not include thestandalone financial statements and our Auditor's Report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind As financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind As financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone IndAS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changesin equity and cash flows of the Company in accordance with accounting principles generallyaccepted in India including Indian Accounting Standards (Ind AS) prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statement that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit of Standalone Ind AS Financial Statement

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial 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 Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the standalone Ind Asfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol;

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind As financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the standalone Ind As financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind As financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication. Report on Other Legal and Regulatory Requirements

1. 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 inparagraphs 3 and 4 of the Order to the extent applicable.

2. 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 and the Cash Flow Statementdealt with by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2021 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 with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure B".

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; we would liketo state that the remuneration which is paid by the Company to its directors during theyear is in accordance 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 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 in its standalone Ind AS financial statements ;

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

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

AS PER OUR REPORT OF EVEN DATE For M/s. Batra Sapra & Company Chartered Accountants (Firm Reg. No:. 000103N)
PLACE: New Delhi DATE : 30/06/2021 (Suraj Srivastava) Partner Membership No. 506515 UDIN: 21506515AAAAAF3118

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our report to the members of KLG CAPITAL SERVICES LIMITED("the Company") for the year Ended on 31st March 2021. We report that:

1) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All the fixed assets has been physically verified by the management during the yearwhich in our opinion is reasonable having regard to the size of the company and nature ofits fixed assets and no material discrepancies were noticed on such physical verification.

(c) The Company does not hold any immovable property; hence clause (c) is notapplicable.

2) The Company doesn't have any inventory hence the clause of the Para 3 (ii)(a) (b)and (c ) is Not Applicable.

3) The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.And hence the clause of the Para 3 (iii)(a) (b) and (c) is not applicable.

4) In our opinion and according to the information and explanations given to us thereare no loans investments guarantees and securities granted in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable and hence notcommented upon.

5) According to information and explanation given to us the company has not acceptedany public deposits and hence the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under are not applicable for the year under audit.

6) We have been informed by the management that the Central Government has notprescribed maintenance of cost records for the Company under sub-section(1) of section 148of the Companies Act 2013. Therefore the provision of clause (vi) of para 3 is notapplicable.

7) (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the company is generally regular in depositing theundisputed statutory dues including provident fund income- tax sales tax wealth taxservice tax customs duty excise duty cess and other material statutory dues applicablewith the appropriate authorities. According to the information and explanation given tous no undisputed amounts payable in respect of the aforesaid dues were outstanding as at31st March 2021 for the period of more than six months from the date becoming payableexcept Service tax payable of Rs.9006454/- and Income tax Payable of Rs.33341085/-

(b) According to the information and explanations given to us there are no dues ofIncome Tax Wealth Tax Service Tax Sales Tax Customs Duty Excess Duty VAT and cess onaccount of any dispute which have not been deposited.

8) The Company does not have any loans or borrowings from any financial institutionbank Government or dues to debenture holders during the year. Hence this clause is notapplicable.

9) In our opinion and according to the information and explanations given to us theCompany has not raised any money by way of initial public offer or further public offer (including Debt Instruments) and term loans applied for the purpose for which they wereraised Therefore the provision of clause (ix) of para 3 is not applicable.

10) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the Company noticed or reported during the year norhave we been informed of such case by the management.

11) In our opinion and according to the information and explanations given to us theCompany has not paid any managerial remuneration during the year. Therefore the provisionof clause (xi) of para 3 is not applicable.

12) The company is not a Nidhi Company. Therefore the provision of clause (xii) of para3 is not applicable.

13) In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the financialstatements etc as required by the applicable accounting standard.

14) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placements of shares or fullyor partly convertible debentures under review. Therefore the provisions of clause (xiv) ofpara 3 is not applicable.

15) The company has not entered into any non-cash transactions with directors orpersons connected with him. Therefore the provision of clause (xv) of para 3 is notapplicable.

16) In our opinion and according to the information and explanations given to us theCompany is required to be registered under section 45-IA of The Reserve Bank of India Act1934 and it has obtained certificate of registration.

AS PER OUR REPORT OF EVEN DATE For M/s. Batra Sapra & Company Chartered Accountants (Firm Reg. No:. 000103N)
PLACE: New Delhi DATE : 30/06/2021 (Suraj Srivastava) Partner Membership No. 506515 UDIN: 21506515AAAAAF3118

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT The Annexure referred to in our reportto the members of KLG CAPITAL SERVICES LIMITED ("the Company") for the yearEnded on 31st March 2021.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KLG CAPITALSERVICES LIMITED ("the Company") as of March 312021 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 with reference to these standalone Ind AS financialstatements based on our audit. We have conducted our audit in accordance with the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls and as 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 with reference to thesestandalone Ind AS financial statements was established and maintained and if such controlsoperated 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 with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone Ind As financialstatements 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 with reference to these standalone Ind AS financial statements.

Meaning of internal financial controls over financial reporting with reference to theseStandalone Ind AS Financial Statements

A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting with reference to these standalone Ind AS financial statements includes thosepolicies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone 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 ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone Ind As financial statements.

Inherent limitations of internal financial controls over financial reporting withreference to these standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting reference tothese standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting reference to these standaloneInd AS financial statements may become inadequate because of changes in conditions orthat the 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 reference to these standalone Ind ASfinancial statements and such internal financial controls over financial reportingreference to these standalone Ind AS financial statements were operating effectively as atMarch 312021 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

 

 

AS PER OUR REPORT OF EVEN DATE For M/s. Batra Sapra & Company Chartered Accountants (Firm Reg. No:. 000103N)
PLACE: New Delhi DATE : 30/06/2021 (Suraj Srivastava) Partner Membership No. 506515 UDIN: 21506515AAAAAF3118

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