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Kumbhat Financial Services Ltd.

BSE: 526869 Sector: Financials
NSE: N.A. ISIN Code: INE795E01019
BSE 00:00 | 26 Feb Kumbhat Financial Services Ltd
NSE 05:30 | 01 Jan Kumbhat Financial Services Ltd
OPEN 2.73
PREVIOUS CLOSE 2.47
VOLUME 500
52-Week high 2.73
52-Week low 0.00
P/E 5.37
Mkt Cap.(Rs cr) 1
Buy Price 2.47
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.73
CLOSE 2.47
VOLUME 500
52-Week high 2.73
52-Week low 0.00
P/E 5.37
Mkt Cap.(Rs cr) 1
Buy Price 2.47
Buy Qty 50.00
Sell Price 0.00
Sell Qty 0.00

Kumbhat Financial Services Ltd. (KUMBHATFIN) - Auditors Report

Company auditors report

To the Members of Kumbhat Financial Services Limited

Opinion

We have audited the financial statements of Kumbhat Financial Services Limited("the Company") which comprise the Balance Sheet as at 31st March 2019 thestatement of Profit and Loss statement of cash flows for the year then ended and notesto the financial statements including a summary of significant accounting policies andother explanatory information.

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 of the state of affairs of the Company as at 31stMarch 2019 the loss and its cash flows 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 Auditors' Responsibilities for the Audit of theFinancial 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 thefinancial 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 financial statements of the current period. We did notcome across any matter of such material significance to be reported in this section.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany'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 the Company's financialreporting process. Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• 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 auditors' report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 Companies Act 2013 we give in the "Annexure B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".

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:

1. The Company has no pending litigations which would have a material impact on itsfinancial position.

2. The Company has not entered into any long term contracts including derivativecontracts for which there were any material foreseeable losses.

3. There has not been an occasion in case of the company during the year under reportto transfer of any sums to the Investor Education and Protection Fund by the Company. Thequestion of delay in transferring such sums does not arise.

For Raju & Daftary

ICAI Firm Registration No.015535S

Chartered Accountants

Sumit Daftary

Partner

Membership No. 237510

Place : Chennai.

Date : May 16th 2019.

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of KUMBHAT FINANCIAL SERVICES LIMITEDof even date)

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

We have audited the internal financial controls over financial reporting of KumbhatFinancial Services Limited ("the Company") as of 31st March 2019 in conjunctionwith our audit of the financial statements of the Company for the year 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's 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 auditor's judgment 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 the assets 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 andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Raju & Daftary

ICAI Firm Registration No.015535S

Chartered Accountants

Sumit Daftary

Partner

Membership No. 237510

Place : Chennai.

Date : May 16th 2019.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

i (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals and no material discrepancies have been noticed on such verification.

(c) The Company is not having any immovable property.

ii The inventories of the company consists of quoted and unquoted shares. In ouropinion and according to the information and explanations given to us the verification ofquoted shares are done by way of confirmation from the Depository Institution and thephysical verification of unquoted shares has been conducted at reasonable intervals. Alsoaccording to the information and explanations given by the management materialdiscrepancies do not exist.

iii According to the information and explanations given to us and on the basis of ourexamination the Company has not granted during the year any loans secured or unsecuredto companies firms or other parties listed in the register maintained under section 189of the Companies Act 2013 and accordingly the provisions of Clause 3 (iii) (a) (b) and(c) of the Order are not applicable.

iv The provisions of section 185 are not applicable to this company. According to theinformation and explanations given to us the company has not made investments or providedguarantees or granted loans and security that would require the compliance of provisionsSec.186 of the Act. Accordingly the provisions of Clause (iv) of paragraph 3 of the orderare not applicable to the company.

v According to the information and explanations given to us and on the basis of ourexamination the company has not accepted any deposits from the public and hence thedirective issued by the Reserve Bank of India and the provisions of Section 73 to 76 orany other relevant provisions of the Act and Companies (Acceptance of Deposits) Rules2015 with regard to the deposits accepted from the public are not applicable to theCompany.

vi According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 for any of the products and services rendered by the company.Accordingly paragraph 3(vi) of the Order is not applicable.

vii According to the information and explanations given to us in respect of statutorydues and on the basis of our examination of books and records:

a) The Company has generally been regular in depositing the undisputed statutory duesincluding Income Tax GST and other material statutory dues as applicable with theappropriate authorities in India.

b) There were no undisputed amounts payable in respect of Income tax Cess and othermaterial Statutory dues in arrears as at 31st March 2019 for a period of more than sixmonths from the date they became payable.

c) According to the information and explanations given to us and as based on therecords of the company examined by us there are no dues of Income Tax Wealth taxService Tax Sales Tax Customs duty Excise duty GST which have not been deposited onaccount of any disputes.

viii According to the information and explanations given to us the Company has nottaken any loans from banks nor has issued any debenture during the year. Hence clause 3(viii) of the order is not applicable to the company.

ix According to the information and explanations given to us the company has notraised by way of initial public offer or further public offer (including debt instruments)or raised any term loans. Hence reporting under Clause 3 (ix) of the Order is notapplicable to the Company.

x Based on the audit procedures and as per the information and explanations given bythe management the company has not committed any fraud and no fraud on the Company hasbeen committed by its officers or employees during the year.

xi In our opinion and according to the information and explanations given to us theCompany has not paid/ provided managerial remuneration during the year hence clause 3(xi) of the order is not applicable to the company.

xii In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly Clause 3 (xii) of the Order is notapplicable.

xiii According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013 andthe details have been disclosed in the Financial Statements as required by the applicableAccounting Standards;

xiv According to the information and explanations given to us no preferentialallotment or private placement of shares or fully or partly convertible debentures hasbeen made during the year under review and hence this clause 3 (xiv) of the Order is notapplicable.

xv According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of Clause 3 (xv) of the Order are not applicable to theCompany.

xvi The company is required to and has been registered under section 45-IA of theReserve Bank of India Act 1934.

For Raju & Daftary

ICAI Firm Registration No.015535S

Chartered Accountants

Sumit Daftary

Partner

Membership No. 237510

Place : Chennai.

Date : May 16th 2019.

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