You are here » Home » Companies » Company Overview » KPI Green Energy Ltd

KPI Green Energy Ltd.

BSE: 542323 Sector: Infrastructure
NSE: KPIGREEN ISIN Code: INE542W01017
BSE 00:00 | 25 May 424.75 -18.05
(-4.08%)
OPEN

442.80

HIGH

452.70

LOW

420.70

NSE 00:00 | 25 May 422.25 -20.35
(-4.60%)
OPEN

454.00

HIGH

454.00

LOW

420.50

OPEN 442.80
PREVIOUS CLOSE 442.80
VOLUME 8712
52-Week high 583.25
52-Week low 44.20
P/E 17.17
Mkt Cap.(Rs cr) 768
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 442.80
CLOSE 442.80
VOLUME 8712
52-Week high 583.25
52-Week low 44.20
P/E 17.17
Mkt Cap.(Rs cr) 768
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KPI Green Energy Ltd. (KPIGREEN) - Auditors Report

Company auditors report

TO THE MEMBERS OF K.P.I. GLOBAL INFRASTRUCTURE LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of K.P.I. GLOBALINFRASTRUCTURE LIMITED ("the company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Pro t and Loss and Statement of cash flows for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accoun ng policies and other explanatory informa on. (hereina er referred toas "the standalone financial statements") In our opinion and to the best of ourinformaon and according to the explanaons given to us the aforesaid standalone financialstatements give the informaon required by the Companies Act 2013 ("the Act") inthe manner so required and give a true and fair view in conformity with the AccounngStandards prescribed under secon 133 of the Act read with the Companies (AccounngStandards) Rules. 2006 and other accounng principles generally accepted in India of thestate of a airs of the Company as at March 31 2021 and profit and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auding (SAs) specified under secon 143(10) of the companies Act 2013. Ourresponsibilies under those standards are further described in the Auditor's Responsibilies for the Audit of the standalone Financial Statements secon of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instut e ofChartered Accountants of India together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of the CompaniesAct 2013 and the Rules thereunder and we have fulfilled our other ethical responsibiliesin accordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.

Key Audit Ma_ers

Key audit ma_ers are those ma_ers that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These ma_ers were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these ma_ers. We have determined the ma_ers described below to the KeyAudit Ma_ers to be communicated in our report.

Key Audit Matter How the matter was addressed in our audit
1 Evaluation of uncertain Tax positions Obtained details of completed Income tax assessment and demand as on March 31 2021 from management.
The company has material uncertain tax positions including ma_ers under dispute which involves significant judgment to determine the possible outcome of the said dispute. Refer Note No. 43 to the standalone financial statements We involved our internal experts to challenge the management's underlying assumptions in esma ng the tax provision and the possible outcome of the dispute. Our internal experts also considered legal precedence and other rulings in evaluating management's position on this uncertain tax posion. Additionally we considered the effect of new information in respect of uncertain tax position as at 01.04.2020 to evaluate whether any change was required to management's posion on this uncertaines.

Other Informa_on

The company's management and Board of Directors are responsible for the preparaon ofthe other informaon. The other informaon comprises the informaon included in the company'sannual report management discussion and analysis Board's report including Annexures toBoard's report but does not include the standalone Financial Statements and our auditor'sreport thereon.

Our opinion on the Standalone Financial Statements does not cover the other informaonand we do not express any form of assurance conclusion thereon.

In connec on with our audit of the standalone financial statements our responsibilityis to read the other informaon and in doing so consider whether the other informaon ismaterially inconsistent with the Standalone Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated /inconsistent. If based on the work we have performed we conclude that there is materialmisstatement of this other informa on we are required to report that fact. We havenothing to report in this regard.

Management's and Board of Director's Responsibility for the

Standalone Financial Statements

The Company's management and Board of Directors are responsible for the ma_ers statedin sec on 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparaon of these standalone financial statements that give a true and fair view of thefinancial posion financial performance and cash flows of the Company in accordance withthe Accoun ng Standards specified under Secon 133 of the Act and other accoun ngprinciples generally accepted in India. This responsibility also includes the maintenanceof adequate accounng records in accordance with the provision of the Act for safeguardingof the assets of the Company and for prevenng and detec ng the frauds and other irregularies; selec on and applicaon of appropriate implementaon and maintenance of accounngpolicies; making judgments and esma tes that are reasonable and prudent; and designimplementa on and maintenance of adequate internal financial controls that were operang eecv ely for ensuring the accuracy and completeness of the accoun ng records relevant tothe prepara on and presentaon of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to connue as a going concern disclosingas applicable ma_ers related to going concern and using the going concern basis ofaccounng unless management either intends to liquidate the Company or to cease operaonsor has no realisc alternav e but to do so.

The Board of Directors is also responsible for overseeing the company's financialreporng process.

Auditor's Responsibility for the Audit of the Standalone

Financial Statements

Our objecv es are to obtain reasonable assurance about whether the standalone financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.

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

Idenfy and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecng a material misstatement resulng from fraudis higher than for one resulng from error as fraud may involve collusion forgeryintenonal omissions misrepresentaons or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under secon143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operang e ecv eness of such controls.

Evaluate the appropriateness of accounng policies used and the reasonableness of accounng es mates and related disclosures in the standalone financial statements made bymanagement and the Board of Directors.

Conclude on the appropriateness of management and Board of Directors use of the goingconcern basis of accounng and based on the audit evidence obtained whether a materialuncertainty exists related to events or condions that may cast significant doubt on theCompany's ability to connue as a going concern. If we conclude that a material uncertaintyexists we are required to draw a_enon in our auditor's report to the related disclosuresin the standalone financial statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or condions may cause the Company to cease toconnue as a going concern.

Evaluate the overall presentaon structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transacons and events in a manner that achieves fair presentaon.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be in uenced. We considerquant av e materiality and qualitav e factors in

(i) planning the scope of our audit work and in evaluang the results of our work; and

(ii) to evaluate the effect of any iden ed misstatements in the standalone financialstatements. We communicate with those charged with governance regarding among otherma_ers the planned scope and ming of the audit and significant audit ndings includingany significant deficiencies in internal control that we idenfy 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 relaonships and other ma_ers that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the ma_ers communicated with those charged with governance we determine thosema_ers that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit ma_ers. We describe these ma_ers inour auditor's report unless law or regulaon precludes public disclosure about the mafteror when in extremely rare circumstances we determine that a mafter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communicaon.

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-secon (11) of Secon 143 of theCompanies Act 2013 we give in the "Annexure-A" a statement on thema_ers specified in the paragraph 3 and 4 of the Order to the extent applicable.

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

a. We have sought and obtained all the informaon and explanaons which to the best ofour 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 appears from our examina on of those books;

c. The standalone Balance Sheet the standalone Statement of Pro t and Loss and thestandalone Cash Flow Statement dealt with by this Report are in agreement with therelevant books of account;

d. In our opinion the aforesaid Standalone Financial Statements comply with theAccounng Standards specified under Secon 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 ;

e. On the basis of wri en representaons received from the directors as on 31st March2021 taken on record by the Board of Directors none of the directors are disqualified ason 31st March 2021 from being appointed as a director in terms of Secon 164(2) of theAct; and

f. With respect to the adequacy of the internal financial controls over financialreporng of financial statements of the Company and the opera ng e ecv eness of suchcontrols refer to our separate report in "Annexure B". Our report expresses anunmodi ed opinion on the adequacy and operang e ecv eness of the Company's internalfinancial controls over financial reporng.

(B) With respect to the other ma_ers to be included in the Auditor's Report inaccordance with the requirements of secon 197(16) of the Act : In our opinion and to thebest of our informa on and according to the explanaons given to us the remuneraon paid bythe Company to its directors during the current year is in accordance with the provisionsof secon 197 of the Act.

The remuneraon paid to any director is not in excess of the limits laid down undersecon 197 of the Act. The Ministry of Corporate A airs has not prescribed other detailsunder secon 197(16) which are required to be commented upon by us.

(C) With respect to the other ma_ers to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand to the best of our informaon and according to the explanaons given to us:

1. The Company has disclosed the impact of pending lig aons as a t 31 March 2021 onits financial posion in its standalone financial statements Refer Note 47 to the financialstatements.

2 .The Company did not have any long-term contracts including derivav es contracts forwhich there were any material foreseeable losses.

3. There has been no delay in transferring amounts required to be transferred to theInvestor Educaon and P rotecon Fund by the Company

for K A Sanghavi and Co LLP
Chartered Accountants
FRN : 0120846W/W100289
Amish Ashvinbhai Sanghavi
Partner
Place : Surat M. No. 101413
Date : 28/06/2021 ICAI UDIN : 21101413AAAAFK3995

ANNEXURE A

To the Independent Auditor's Report on the Standalone financial statements of K.P.I.GLOBAL INFRASTRUCTURE LIMITED for the year ended March 31 2021.

(Referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" sec_on of our report of even date)

I. a. The Company has maintained proper records showing full parcular s includingquant av e details and situaon of xed assets.

b. The company has a regular programme of physical veri ca on of its assets by whichall assets are veri ed in a phased manner over a period of 2 years. In accordance withthis programme a poron of xed assets has been physically veri ed by the management duringthe year and no material discrepancies have been noced on such veri caon. In our opinionthis periodicity of physical veri caon is reasonable having regard to the size of thecompany and the nature of its assets.

c. According to the informaon and explanaons given by the management the tle deeds ofimmovable properes as disclosed in Note No. 13 "Tangible Assets" under"Property Plant and Equipment" to the Standalone Financial Statements are heldin the name of the Company.

II. a. The management has conducted physical veri caon of inventory exceptgoods-in-transit at reasonable intervals during the year.

b. The procedures of physical veri caon of inventory followed by the management arereasonable and adequate in relaon to the size of the Company and the nature of itsbusiness. In respect of inventory lying with third pare s these have substana lly beencon rmed by them.

c. The Company is maintaining proper records of inventory and no material discrepancieswith book records were noced on physical veri caon.

III. According to the informaon and explanaons given to us the Company has not grantedloans secured or unsecured to companies rms Limited Liability Partnerships or otherpares covered in the register maintained under secon 189 of the Companies Act 2013.Accordingly provisions of clauses 3(iii) (a) (b) & (c) of the Order are notapplicable to the Company and hence not commented upon.

IV. The company has not granted any loans or provided any guarantees or security to thepares covered under secon 185 of the Act. The company has complied with the provisions ofSecon 186 of the Act in respect of investments made or loans or guarantee or securityprovided to the pares covered under secon 186.

V. According to informaon and explanaons given to us the Company has not accepted anydeposits from the public within the meaning of direc ves issued by Reserve Bank of Indiaprovisions of Secon 73 to 76 of the Act any other relevant provisions of the Act and therelevant Rules framed thereunder. Hence the provisions of clause 3(v) of the Order arenot applicable to the Company and hence not commented upon.

VI. The provisions of The Companies (Cost Records and Audit) Rules 2014 as amended bythe Companies (cost records and audit) Amendment Rules 2016 read with provisions of Sec.148(1) of The Companies Act 2013 for the maintenance of cost records are not applicableto the company. Hence the Company is not required to maintain Cost Records and hence notrequired to get the cost audit done as per the provisions of The Companies (Cost Recordsand Audit) Rules 2014.

VII. a. According to the informa on and explana ons given to us and the records of thecompany examined by us in our opinion the Company is generally regular in deposi ng theundisputed statutory dues including provident fund employees' state insuranceincome-tax customs duty GST cess professional tax and other material statutory duesapplicable to it with appropriate authories. However there has been a slight delay infew cases.

According to the informa on and explana ons given to us no undisputed amounts payablein respect of provident fund employees' state insurance Income tax customs duty GSTcess professional tax and other material statutory dues were in arrears as at March 312021 for a period of more than six months from the date they became payable.

b. According to the informa on and explana ons given to us the company has notdeposited the following dues under the Income Tax Act 1961 due to the disputes.

In Lakhs

Nature of statute Nature of Dues Amount unpaid (in Lakhs Rupees) Period to which the Amount relates (Assessment Year) Forumwhere Disputeis pending
Income Tax Act 1961 Income Scrun y Tax 13.31 2016-2017 Commissioner Of Income
Assessment U/S. 143(3) (263.94-250.63) Tax- (Appeals)-1 Surat
Income Tax Act 1961 Income Scrun y Tax 74.22 2015-2016 Commissioner Of Income
Assessment U/S. 143(3) (87.74 13.52 paid) Tax- (Appeals)-1 Surat
Income Tax Act 1961 Income Scrun y Tax 14.24 2014-2015 Commissioner Of Income
Assessment U/S. 143(3) (29.80 15.56 Paid) Tax- (Appeals)-1 Surat

VIII Based on our audit procedures and as per the informa on and explana ons given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to banks and Financial Instuon. The Company had no Debentures issued or outstandingduring the period.

IX During the year under reporng the company has not raised any money by way of InialPublic O er (IPO) or Further Public O er (FPO) including any debt instruments. Howeverduring the year under reporng the company has taken term loan and short term workingcapital loans from financial instuons and Bank. In our opinion and explanaons given to usthe money raised by the company have been applied for the purposes for which they wereraised.

X According to the informaon and explanaons given to us no fraud by the company or onthe company by its o cers or employees has been noced or reported during the course of ouraudit.

XI According to the informaon and explanaons given to us and based on our examinaon ofthe records of the Company the Company has paid/provided for managerial remunera on inaccordance with the requisite approvals mandated by the provisions of Secon 197 read withSchedule V to the Act.

XII In our opinion and according to the informaon and explanaons given to us thecompany is not a Nidhi company. Accordingly the provisions of clause 3 (xii) of the Orderare not applicable to the Company and hence not commented upon.

XIII According to the informaon and explanaons given to us and based on our examinaonof the records of the Company transacons with the related pares are in compliance withSecon 177 and 188 of the Act where applicable and details of such transacons have beendisclosed in the notes to the standalone financial statements as required by theapplicable accounng standards.

XIV According to the informaon and explanaons given to us and based on our examinaonsof the records of the Company the Company has not made any preferenal allotment orprivate placement of shares or fully or partly conver ble debentures during the year.Accordingly the provisions of clause 3(xiv) of the Order are not applicable to theCompany and hence not commented upon.

XV According to the informaon and explanaons given to us and based on our examinaon ofthe records of the Company the Company has not entered into non-cash transacons withdirectors or persons connected with him. Accordingly the provisions of clause 3(xv) ofthe Order are not applicable and hence not commented upon.

XVI According to the informaon and explanaons given to us the company is not requiredto be registered under secon 45 IA of the Reserve Bank of India Act 1934. Accordinglythe provisions of clause 3(xvi) of the Order are not applicable to the Company and hencenot commented upon.

For K A Sanghavi and Co LLP
Chartered Accountants
FRN : 0120846W/W100289
Amish Ashvinbhai Sanghavi
Partner
Place : Surat M. NO. 101413
Date : 28/06/2021 ICAI UDIN : 21101413AAAAFK3995

ANNEXURE B

To the Independent Auditor's report to the Standalone Financial Statements of K.P.I.Global Infrastructure Limited for the year ended on March 31 2021.

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' secon of our report to the Members of K.P.I. Global Infrastructure Limitedof even date)

Report on the Internal Financial Controls over Financial Repor_ng under Clause (i) ofSub- sec_on 3 of Sec_on 143 of the Companies Act 2013 ("the Act")

Opinion:

We have audited the internal financial controls with reference to Financial statementsof K.P.I. GLOBAL INFRASTRUCTURE LIMITED ("the Company") as of March 312021 in conjuncon with our audit of the standalone financial statements of the Company forthe year ended on that date.

In our opinion to the best of our informaon and according to the explanaons given tous the Company has in all material respects an adequate internal financial controlssystem over financial reporng with reference to the financial statements and such internalfinancial controls over financial reporng were operang e ecv ely as at March 31 2021based on the internal control over financial reporng with reference to the financialstatements criteria established by the Company considering the essenal components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporng issued by the Instut e of Chartered Accountants of India.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors of the Company are responsible forestablishing and maintaining internal financial controls based on the internal controlover financial repor ng with reference to the financial statements criteria established bythe Company considering the essen al components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporng issued by the Instut eof Chartered Accountants of India. These responsibilies include the design implementaonand maintenance of adequate internal financial controls that were operang e ecv ely forensuring the orderly and efficient conduct of its business including adherence to respecve policies of the Company the safeguarding of its assets the prevenon and detec on offrauds and errors the accuracy and completeness of the accounng records and the melypreparaon of reliable financial informaon as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporng with reference to the financial statements of the Companybased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporng (the "Guidance Note")issued by the Ins tute of Chartered Accountants of India and the Standards on Audingprescribed under Secon 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls with reference to financial statements. 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 reporng with reference to financial statements wasestablished and maintained and whether such controls operated e ecv ely in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial repor ng with reference to financialstatements and their operang e ecv eness. Our audit of internal financial controls overfinancial reporng with reference to financial statements included obtaining anunderstanding of such internal financial controls over financial reporng assessing therisk that a material weakness exists and tesng and evaluang the design and operang e ecveness of internal control based on the assessed risk. The procedures selected depend onthe auditor's judgement including the assessment of the risks of material misstatement ofthe standalone 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 repor ng with reference to the financial statements of the Company.

Meaning of Internal Financial Controls over Financial Repor_ng with reference toFinancial Statements

A company's internal financial control over financial reporng with reference to thefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporng and the preparaon of financial statements for externalpurposes in accordance with generally accepted accounng principles. A company's internalfinancial controls over financial reporng with reference to the Financial Statementsincludes those policies and procedures that

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

(2) provide reasonable assurance that transacons ar e recorded as necessary to permitprepara on of financial statements in accordance with generally accepted accounngprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisa ons of management and directors of the company; and

(3) provide reasonable assurance regarding prevenon or mely detecon of unauthorisedacquision use or disposion of the company's assets that could have a material effect onthe financial statements.

Inherent Limita_ons of Internal Financial Controls over Financial Repor_ng withreference to the Financial Statements

Because of the inherent limitaons of internal financial controls over financial reporngwith reference to the financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projecons of any evaluaon of the internal financialcontrols over financial reporng with reference to the financial statements to futureperiods are subject to the risk that the internal financial control over financial reporngwith reference to the financial statements may become inadequate because of changes incondions or that the degree of compliance with the policies or procedures maydeteriorate.

For K A Sanghavi and Co LLP
Chartered Accountants
FRN : 0120846W/W100289
Amish Ashvinbhai Sanghavi
Partner
Place : Surat M. No. 101413
Date : 28/06/2021 ICAI UDIN : 21101413AAAAFK3995

.