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KLK Electrical Ltd.

BSE: 517170 Sector: Engineering
NSE: N.A. ISIN Code: INE125G01014
BSE 00:00 | 18 Oct 22.05 1.05
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NSE 05:30 | 01 Jan KLK Electrical Ltd
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VOLUME 221
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OPEN 22.05
CLOSE 21.00
VOLUME 221
52-Week high 23.20
52-Week low 10.85
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KLK Electrical Ltd. (KLKELECTRICAL) - Auditors Report

Company auditors report

The Members

KLK ELECTRICAL LIMITED

Chennai.

REPORT ON THE IND AS FINANCIAL STATEMENTS

Opinion

We have audited the accompanying Ind AS financial statements of KLK ELECTRICALLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2020 Statement of Profit & Loss (including other comprehensive income) the statementof cash flows and the statement of changes in equity for the year then ended and a summaryof significant 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 Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS

a) In the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2020; and

b) In the case of Statement of Profit & Loss (including other comprehensiveIncome) of the Loss for the year ended on that date.

c) In the case of Cash Flow Statement of the cash flows of the Company for the yearended on that date.

d) In the case of statement of changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAS Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of the Ind ASfinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters :

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

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

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS 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

c) 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 Ind AS 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 March 31 2020 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 ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
Date: 29.06.2020 Membership No. 022644

ANNEXURE A” to the Auditor's Report

Statement referred to in our report of even date to the members of KLK ELECTRICALLIMITED on the Ind AS financial statements for the year ended 31st March 2020:

(i) a) The Company has maintained proper records showing full particulars of itsIntangible assets.

b) The company does not have any Tangible Fixed Assets.

(ii) The company does not carry any inventories; hence the clauses in respect ofinventories are Not applicable.

(iii) The company has not granted any loans secured or unsecured to companies firmsor other parties covered under section 189 of the Companies Act 2013 and hence thisclause is not applicable to the company.

(iv) In our opinion and according to the information and explanations given to uscompany has complied with the provisions of section 185 and Section 186 of Companies Act2013 is not applicable to the company.

(v) 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.

(vi) The Central Government has not prescribed maintenance of Cost Records under sub -section (1) of section 148 of the Companies Act 2013.

a) The Company has not carried on any business activity during the year and hence thisclause relating to payment of undisputed statutory dues is not applicable.

b) The Company is not having any disputed liabilities relating to Income Tax or SalesTax or Service Tax or GST or Cess as at the year end.

(viii) In our opinion and according to the information and explanations given to usthe Company has not taken any loans from banks/financial institutions and hence clause ofdefault is not applicable.

(ix) On the basis of our examination of records and according to the information andexplanations given to us the Company has not raised any money by way of public offer(including debt instruments) or by way of term loan during the year and hence the clauserelating to application of funds is not applicable.

(x) In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers/employees has been noticed orreported during the year that causes the Ind AS financial statements materially misstated.

(xi) In our opinion and according to the information and explanations given to us thecompany has not made managerial remuneration and hence the provisions of section 197 readwith Schedule V to the Act are not applicable to the Company. Therefore clause (xi) ofparagraph 3 of the said order is not applicable to the Company.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the Governmentof India in terms of sub-section (11) of section 143 of the Companies Act 2013 weenclose in the "Annexure A" hereto a statement on the matters specified inparagraphs 3 and 4 of the said Order.

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

i) 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.

ii) 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.

iii) The balance sheet the statement of profit and loss (including other comprehensiveIncome) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account.

iv) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

v) On the basis of the written representations received from the Directors as on31" March 2020 taken on record by the Board of Directors none of the Directors isdisqualified as on 31' March 2020 from being appointed as a Director in terms of Section164 (2) of the Act.

vi) 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"

vii) 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 :

a) Provision relating to Impact of pending litigations on its financial position in itsfinancial Statements - NIL ;

b) Provision relating to Material Foreseeable Losses on Long-Term Contracts - NotApplicable. The company neither entered into any derivative contract during the year norhave any outstanding derivative contract at the year end.

c) The provision relating to transferring any amounts to the Investor Education andProtection Fund is not applicable to the company during the year.

Responsibility Management for the Ind AS 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 Ind AS 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 accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement 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.

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

Auditor's Responsibility for the Audit of Ind AS Financial Statements

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the Indian accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS 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 Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS 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 Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directorsas well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

for ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
Date: 29.06.2020 Membership No. 022644

“ANNEXURE B” TO THE INDEPENDENT AUDITOR'S

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 KLKELECTRICAL LIMITED ("the Company") as of March 31 2020 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were 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 judgement including the assessment of the risks ofmaterial misstatement of the Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles.

A company's internal financial control over financial reporting includes those policiesand procedures that; applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) On the basis of our examination of records and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Thereforeclause (xiv) of paragraph 3 of the said order is not applicable to the Company.

(xv) On the basis of our examination of records and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with them during the year under the provisions of section192 of the Act. Therefore clause (xv) of paragraph 3 of the said order is not applicableto the Company.

(xvi) On the basis of our examination of records and according to the information andexplanations given to us the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

for ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
Date: 29.06.2020 Membership No. 022644

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