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KMF Builders & Developers Ltd.

BSE: 531578 Sector: Infrastructure
NSE: N.A. ISIN Code: INE580H01026
BSE 00:00 | 15 Feb KMF Builders & Developers Ltd
NSE 05:30 | 01 Jan KMF Builders & Developers Ltd
OPEN 1.72
PREVIOUS CLOSE 1.72
VOLUME 600
52-Week high 2.50
52-Week low 1.72
P/E 9.56
Mkt Cap.(Rs cr) 2
Buy Price 1.72
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.72
CLOSE 1.72
VOLUME 600
52-Week high 2.50
52-Week low 1.72
P/E 9.56
Mkt Cap.(Rs cr) 2
Buy Price 1.72
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00

KMF Builders & Developers Ltd. (KMFBUILDERS) - Auditors Report

Company auditors report

To the Members of

M/s. KMF BUILDERS AND DEVELOPERS LTD

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of M/s. KMF BUILDERS &DEVELOPERS LTD. which comprise the Balance Sheet as at March 31 2018 and the Statementof Profit and Loss Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information. Management'sResponsibility 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 Indian

Accounting Standards(Ind AS) prescribed under section 133 of the Act read with theCompanies(Indian Accounting Standards) Rules 2015 as amended and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

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

In conducting our Audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under and the orderissued 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 financial statements are free from materialmisstatement.

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 thefinancialstatements 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 audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion 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 at March31 2018;

b) In the case of the Profit and Loss Account of the profit for the year ended on thatdate.

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. 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 the statement of Cash flowstatement dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors of thecompany as on 31 March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2018 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) 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 unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.

(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 has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements.

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.

2. 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 B'' a statement on the matters specified inparagraphs 3 and 4 of the Order.

For C S Nagendra &Co.

Chartered Accountants Firm Reg No.9486S

CA C S Nagendra

Proprietor

ICAI Reg. No. 27390

PLACE : Bangalore

DATE : 30.05.2018

"ANNEXURE A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal & RegulatoryRequirements' section of our report to the members KMF Builders & Developers Ltdofeven date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the "Act")

We have audited the internal financial controls over financial reporting of KMFBUILDERS & DEVELOPERS LIMITED (the "Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 auditors' judgement 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 financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of theassets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts and paymentsof the company are being made only in accordance with authorizations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on 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

According to the information and explanations given to us the company has notintroduced Internal Audit system for the year.

In our opinion to the best of our information and according to the explanations givento us except for the effect of the matter described in the above paragraph the Companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2018 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For C S Nagendra &Co. Chartered Accountants Firm Reg No.9486S

CA C S Nagendra

Proprietor

ICAI Reg. No.27390

PLACE : Bangalore

Date : 30.05.2018

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the members KMF Builders & Developers LTD of even date)

i) In respect of Company's fixed assets:

a) The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets on the basis of available information;

b) According to the information and explanations given to us the Company has a programof verification of fixed assets in a phased manner which in our opinion is reasonablehaving regards to the size of the Company and the nature of its assets. Pursuant to theprogram certain fixed assets were physically verified by the Management during the year.No material discrepancies were noticed on such verification.

c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report that thetitle deedscompromising all the immovable properties of land & buildings which arefreehold are held in the name of the company as at the balance sheet date.

ii) In respect of Company's Inventories:

a) The management has conducted the physical verification of inventory at reasonableintervals.

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.

iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are notapplicable to the Company and hence not commented upon.

iv) 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 in respect ofgrant of loans making investments and providing guarantees and securities asapplicable.Except in respect of Investments in shares are held in the name ofDirectorsDemat Account due to Freezing of Company Holding Statement by Central DepositoryServices Ltd.

v) According to the information and explanations given to us the Company has notaccepted any deposits from the public during the year and does not have any unclaimeddeposits as at March 31 2018 and therefore the provisions of the clause 3(v) of theorder are not Applicable to the company.

vi) The maintenance of Cost Records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause 3(vi) of the order is not applicable to thecompany.

vii) According to the information and explanations given to us in respect of statutorydues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales tax Service TaxGoods and Service Tax Value added Tax Customs Duty Excise Duty Cess and any otherstatutory dues applicable to it with the appropriate authorities.

b) There were no undisputed amounts payable in respect of Provident Fund EmployeesState Insurance Income-Tax Sales tax Service Tax Goods and Service Tax Value addedTax Customs Duty Excise Duty Cess and other material statutory dues in arrears as atMarch 31 2018 for a period of more than six months from the date they become payable.

c) Details of dues to Income Tax Service Tax Excise Duty and Value added Tax whichhave not been deposited as at March 31 2018 on account of dispute are give below:

Name of the Statues Nature of dues Amount
Income tax Act 1961 Interest on delayed payment of TDS u/s 201 & 220(2) & Interest on Short Deduction & Short Payment 31310.00
Short Payment & Short Deduction of TDS 280376.20
Late Filing Fee 47645.00

viii) 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 Banks and Government or has not issued anydebentures. Hence reporting under clause 3 (viii) of the order is not applicable to thecompanyExceptCAR LOANfrom ICICI Bank.

ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term Loans and hence reporting under clause 3 (ix)of the Order are not applicable to the Company.

x) Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or no material fraud on thecompany by its officers or employees has been noticed or reported during the year.

xi) 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;

xii) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order is not applicable to the Company.

xiii) In our opinion and according to the information and explanations given to us thecompany is in compliance with section 177 and 188 of Companies Act 2013 where applicablefor all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone Financial Statements as required by theapplicable accounting standards.

xiv) 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.

xv) 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 section 192 of theCompanies Act2013 are not applicable to the Company.

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

For C S Nagendra &Co. Chartered Accountants Firm Reg No.9486S

CA C S Nagendra

Proprietor

ICAI Reg. No. 027390

Place: Bangalore

Date: 30.05.2018