Mar 31, 2015
We have audited the accompanying financial statements of KBS India
Limited, which comprise the Balance Sheet as at 31 March 2015, the
Statement of Profit and Loss, the Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts together with the notes
thereon give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Bank as at 31st March, 2015;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Matters
1. As required by the Companies (Auditor's Report) Order,2015, issued
by the Central Government of India in term of sub-section (11) of
section 143 of the Companies Act, 2013, we give in the Annexure a
statement on the matters specified in the 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 obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion the company has kept proper books of account as
required by the law have been kept by the Company so far as appears
from our examinations of those books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
d) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from directors, as
on 31st March 2015 and taken on the record by the Board of Directors,
we report none of the Directors are disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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 financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
1. a. The Company has maintained proper record showing particulars,
including quantitative details and situation of fixed assets.
b. As explained to us Fixed Assets according to the practice of the
company are physically verified by the management at reasonable
intervals, which in our opinion, is reasonable, looking to the size of
the company and the nature of the business. No material discrepancies
were noticed on such verification.
2. a. The Company is a stock broking company and has its inventory in
shares. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory
and the book records were not material and have been properly dealt
with in the books of account.
3. In respect of the loans secured or unsecured, granted or taken by
the company to/from companies, firms of other parties covered in the
register maintained under Section 189 of the Companies Act, 2013:
a. The company has given loan to its subsidiary. In respect of the
said loan, the maximum amount outstanding as on 31/03/2015 is Rs.
13,77,93,715/-.
b. In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loan given by the Company, are not prejudicial to the interest of the
Company.
c. The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
d. In respect of the said loans, the same are repayable and therefore
the question of overdue amounts does not arise. In respect of the
interest, there are no overdue amounts.
e. The company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under the
Act.
4. In our opinion and according to the information and explanation
given to us, generally there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of shares, fixed assets and for sale
of the shares. Further, on the basis of our examinations of books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct this major weakness in
the aforesaid internal control procedures.
5. According to the information and explanations provided by the
management, we are of the opinion that, the transactions that need to
be entered into the register maintained under the Act have been so
entered.
6. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of sections 73 to 76 or any other relevant provisions of the Companies
Act and the rules framed there under, where applicable, have been
complied with.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under sub-section (1) of section 148 of the Companies Act.
9. a) According to the records of the company examined by us, and as
per the information and explanations given to us, in our opinion, the
company is generally regular in depositing the undisputed statutory
dues including Income tax, Wealth tax, Service tax and other statutory
dues with the appropriate authorities except TDS which includes minor
delay in payments.
b) According to the information and explanations given to us and on the
basis of examination of the documents and records, there are no
disputed statutory dues, which are not been deposited with the
appropriate authorities.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses during the year under
report.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank.
12. As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. On the basis of the records examined by us and evaluation of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of dealings in shares and
securities and other investment and timely entries have been made
therein. The aforesaid securities have been held by the Company except
to the extent of exemption granted under the Act.
14. According to information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions.
15. As explained to us, the Company has not raised any term loans
during the year.
16. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company, there are no funds raised on a short-term basis, which have
been used for long-term investment, and vice versa.
17. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For and on behalf of
Gopal Rao & Associates
Chartered Accountants
Firm Registration No. 127055W
(N.G.Rao)
Proprietor
Membership.No. 33665
Place: Mumbai
Date: 22nd May 2015
Mar 31, 2014
We have audited the accompanying financial statements of the KBS India
Limited, which comprise the Balance Sheet as at 31st March, 2014, the
Statement of Profit and Loss and the cash flow statement for the year
then ended and a summary of significant accounting policies and other
explanatory information
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give true
and fair view and 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 our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts together with the notes
thereon give the information required by the Companies Act, 1956, in
the manner so and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Bank as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Matters
1. As required by the Companies (Auditors Report) Order, 2003, as
amended, issued by the Central Government of India in terms of
subsection (4A) of section 227 of the Companies Act, 1956, and on the
basis of such checks as we considered necessary and appropriate, and
according to the information and explanations given to us during the
course of our audit, we enclose in the Annexure a statement on the
matters specified in the paragraph 4 and 5 of the said order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
b) In our opinion the company has kept proper books of account as
required by the law have been kept by the Company so far as appears
from our examinations of those books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
d) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in the sub  sections (3C) of the
section 211 of the companies Act, 1956.
e) On the basis of written representations received from directors, as
on 31st March 2014 and taken on the record by the Board of Directors,
we report none of the Directors are disqualified as on 31st March 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
Aimexure to the Auditor''s Report (Referred to in paragraph 3 of our
report of Even Date)
l.a. The Company has maintained proper record showing particulars,
including quantitative details and situation of fixed assets.
b. As explained to us Fixed Assets according to the practice of the
company are physically verified by the management at reasonable
intervals, which in our opinion, is reasonable, looking to the size of
the company and the nature of the business. No material discrepancies
were noticed on such verification.
2. a. The Company is a stock broking company and has its inventory in
shares. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
c. In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
d. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory
and the book records were not material and have been properly dealt
with in the books of account.
3. In respect of the loans secured or unsecured, granted or taken by
the company to/from companies, firms of other parties covered in the
register maintained under section 30f of the Companies Act, 1956:
b. The company has given loan to its subsidiary. In respect of the
said loan, the maximum amount outstanding as on 31/03/2014 is Rs.
12,92,89,784/-.
f. In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loan given by the Company, are not prejudicial to the interest of the
Company.
g. The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
h. In respect of the said loans, the same are repayable and therefore
the question of overdue amounts does not arise. In respect of the
interest, there are no overdue amounts.
i. The company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (f) arid (iii) (g) of paragraph 4 of the Order are not
applicable.
4. In our opinion and according to the information arid explanation
given to us, generally there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of shares, fixed assets and for sale
of the shares. Further, on the basis of our examinations of books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct this major weakness in
the aforesaid internal control procedures.
5. According to the information and explanations provided by the
management, we are of the opinion that, the transactions that need to
be entered into the register maintained under section 301 have been so
entered.
6. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58A and 58AA of the Companies Act, 1956 and rules framed
there under apply.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956.
9. a) According to the records of the company examined by us, and as
per the information and explanations given to us, in our opinion, the
company is generally regular in depositing the undisputed statutory
dues including Income tax, Wealth tax, Service tax and other statutory
dues with the appropriate authorities except TDS wrhich includes minor
delay in payments. However, the undisputed statutory dues outstanding
for more than six months are as per Annexure "A" attached.
b) According to the information and explanations given to us and on the
basis of examination of the documents and records, there are no
disputed statutory dues, which are not been deposited with the
appropriate authorities.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses during the year under
report.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank.
12.As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a mdhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. Ck the basis of the records examined by us and evaluation of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of dealings in shares and
securities and other investment and timely entries have been made
therein. The aforesaid securities have been held by the Company except
to the extent of exemption granted under section 49 of the Companies
Act, 1956.
15. According to information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions. Accordingly, clause 4 (xv) of the Order is not
applicable.
16. As explained to us, the Company has not raised any term loans
during the year.
17. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Companv and
after placing reliance on the reasonable assumptions made by the
Company, there are no funds raised on a short-term basis, which have
been used for long-term investment, and vice versa.
18. The Companv has made preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
19. As per information & explanations given to us, and on the basis of
the records and documents examined by us, the Company has not issued
any secured debentures during the year.
20. As per information & explanations given to ns, and on the basis of
the records and documents examined by us, The Company has not raised
money during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For and on behalf of
Gopal Rao & Associates
Chartered Accountants
N. G. Rao
(Proprietor)
Membership No. 33665
Firm Registration No. 127055W
Place: Mumbai
Date: 30.05.2014
Mar 31, 2011
1. We have audited the attached Balance sheet of M/s. KBS INDIA
LIMITED (Formerly known as KBS Capital Management Ltd) as at 31stMarch
2011 together with the Profits Loss Accounts Cash Flow Statement for
the year ended as on that date annexed hereto. These financial
statements are the responsibility of the Board of Directors of KBS
India Ltd. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of subsection (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered necessary and appropriate, and according to the
information and explanations given to us during the course of our
audit, we enclose in the Annexure a statement on the matters specified
in the paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all information and explanations, which to the
best or our knowledge and belief were necessary for the purpose of
our audit.
b. In our opinion the company has kept proper books of account as
required by the law so far as appears from our examinations of those
books.
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of accounts.
d. In our opinion the Balance Sheet and Profit & Loss Account dealt
with by this report comply with the Accounting Standards referred to in
the sub sections (3C)of the section 211 of the companies Act, 1956.
e. On the basis of written representations received from directors, as
on 31st March 2011 and taken on the record by the Board of Directors,
we report none of the Directors are disqualified as on 31st March 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant Account Policies and Notes to Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. In the case of the Balance Sheet of the state of affairs of the
company as at 31st March 2011;
ii. In the case of the Profit and Loss account, of the Profit for the
year ended as on that date.
iii. In the case of Cash Flow Statement of the Cash Flow for the year
ended on that date.
KBS INDIA LIMITED
Annexure to the Auditor's Report.
(Referred to in paragraph 3 of our report of Even Date)
1. a. The Company has maintained proper record showing particulars,
including quantitative details and situation of fixed assets.
b. As explained to us Fixed Assets according to the practice of the
company are physically verified by the management at reasonable
intervals, which in our opinion, is reasonable, looking to the size of
the company and the nature of the business. No material discrepancies
were noticed on such verification.
2. a. The Company is a stock broking company and has its inventory in
shares. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory
and the book records were not material and have been properly dealt
with in the books of account.
3. In respect of the loans secured or unsecured, granted or taken by
the company to/ from companies, firms of other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a. The company has given loan to its subsidiary. In respect of the
said loan, the maximum amount outstanding as on 31/03/2011 is Rs.
10,70,57,100.30.
b. In our opinion and according to the information and explanation
given to us, the rate of interest of interest and other terms and
conditions of the loan given by the Company, are not prejudicial to the
interest of the Company.
c. The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
d. In respect of the said loans, the same are repayable and therefore
the question of overdue amounts does not arise. In respect of the
interest, there are no overdue amounts.
e. The company has not taken any loan during the year from companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.
4. In our opinion and according to the information and explanation
given to us, generally there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of shares, fixed assets and for sale
of the shares. Further, on the basis of our examinations of books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct this major weakness in
the aforesaid internal control procedures.
5. According to the information and explanations provided by the
management, we are of the opinion that, the transactions that need to
be entered into the register maintained under section 301 have been so
entered.
6. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58Aand 58AAof the Companies Act, 1956 and rules framed there
under apply.
7. In our opinion, the Company has an adequate internal audit system
Commensurate with its size and nature of its business* .
8. The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956.
9. a. According to the records of the company examined by us, and as
per the information and explanations given to us, in our opinion, the
company is generally regular in depositing the undisputed statutory
dues including Income tax, Wealth tax, Service tax and other statutory
dues with the appropriate authorities. However, the undisputed
statutory dues outstanding for more than six months are as per Annexure
'A' enclosed.
b. According to the information and explanations given to us and on
the basis of examination of the documents and records, there are no
disputed statutory dues, which are not been deposited with the
appropriate authorities.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses during the year under
report.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank.
12. As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. On the basis of the records examined by us and evaluation of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of dealings in shares and
securities and other investment and timely entries have been made
therein. The aforesaid securities have been held by the Company except
to the extent of exemption granted under section 49 of the Companies
Act, 1956.
15. According to information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions. Accordingly, clause 4 (xv) of the Order is not
applicable.
16. As explained to us, the Company has not raised any term loans
during the year.
17. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company, there are no funds raised on a short-term basis, which have
been used for long-term investment, and vice versa.
18. The Company has made preferential allotment of shares to parties
and companies covered in the register maintained undersection301 of the
Companies Act, 1956.
19. As per information & explanations given to us, and on the basis of
the records and documents examined by us, the Company has not issued
any secured debentures during the year.
20. As per information & explanations given to us, and on the basis of
the records and documents examined by us, The Company has raised money
by issue of GDRs, during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For and on behalf of
GOPAL RAO & ASSOCIATES.
Chartered Accountants
F.R.NO.127055W
(N.G.Rao)
Proprietor
M.No. 33665
Place: Mumbai.
Date : 11/08/2011
Mar 31, 2010
1. We have audited the attached Balance sheet of M/s. KBS Capital
Management Ltd. as at 31st March 2010 together with the Profit & Loss
Account for the year ended as on that date annexed hereto. These
financial statements are the responsibility of the Board of Directors
of KBS Capital Management Ltd. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
ouropinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of subsection (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered necessary and appropriate, and according to the
information and explanations given to us during the course of our
audit, we enclose in the Annexure a statement on the matters specified
in the paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above.we
report that:
a. We have obtained all information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit.
b. In our opinion the company has kept proper books of account as
required by the law so far as appears from our examination of those
books.
c. The Balance Sheet and Profit and Loss Accountdealtwith by this
report are in agreement with the books of accounts.
d. During the year, the Company has passed an Ordinary Resolution
through the Postal Ballot process, result of which was declared on 31st
December 2009 increasing the Authorized capital of the company from 7
crore to 14 crore. The necessary fees/stamp duty has not been paid to
the Registrar of Companies and to that extent the increase in share
capital is defective. The Liability towards stamp duty / registration
fees and additional fees payable for delayed filing of e-form 5 has not
been provided in the accounts.
e. In our opinion the Balance Sheet, and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
the sub-sections (3C) of section 211 of the Companies Act, 1956.
f. On the basis of written representations received from directors, as
on 31s,March 2010 and taken on the record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
g. In ouropinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes to Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i.In the case of Balance Sheet of the state of affairs of the company as
at 31st, March 2010;
and
ii.In the case of the Profit and Loss account. of the loss for the year
ended as on that date.
Annexure to the Auditors Report. (Referred to in paragraph 3 of our
report of Even Date)
1. a. The Company has maintained proper record showing particulars,
including quantitative details and situation of fixed assets.
b. As explained to us Fixed Assets according to the practice of the
company are physically verified by the management at reasonable
intervals, which in our opinion, is reasonable, looking to the size of
the company and the nature of the business. No material discrepancies
were noticed on such verification.
c. During the year, the company has sold Xerox Machine.
2. a. The Company is a stock broking company and has its inventory in
shares. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory
and the book records were not material and have been properly dealt
with in the books of account.
3. a. According to the information and explanation given to us, the
Company has not granted unsecured loans to companies, firms and other
parties covered in the register maintained undersection 301 of the
CompaniesAct, 1956.
b. According to the information and explanation given to us, the
Company has not taken any unsecured loans from the companies, firms and
other parties covered in the register maintained undersection 301 of
the CompaniesAct, 1956.
c. As there are no stipulation for the recovery and payment of
principal amount and interest, the question of regularity in recovery
and payment of principal and interest does not arise. According to the
information given to us, the loans taken and granted to the parties
referred herein above are not prima-facie prejudicial to the interest
of the company.
d. There are no over due amounts of such loans as on 31st,March 2010.
4. In our opinion and according to the information and explanation
given to us, generally there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of shares, fixed assets and for sale
of the shares. Further, on the basis of our examinations of books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct this major weakness in
the aforesaid internal control procedures.
5. According to the information and explanations provided by the
management, we are of the opinion that, the transactions that need to
be entered into the register maintained undersection 301 have been so
entered.
6. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58Aand 58AAof the CompaniesAct, 1956 and rules framed there
under apply.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records undersection 209(1 )(d) of the CompaniesAct, 1956.
9. a. According to the records of the company examined by us, and as
per the information and explanations given to us, in
our opinion, the company is generally regular in depositing the
undisputed statutory dues including Income tax, Wealth tax, Service tax
and other statutory dues with the appropriate authorities. However, the
undisputed statutory dues outstanding for more than six months are as
per Annexure A attached.
b. According to the information and explanations given to us and on the
basis of examination of the documents and records, there are no
disputed statutory dues, which are not been deposited with the
appropriate authorities.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses during the year under
report.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank.
12. As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and othersecurities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. On the basis of the records examined by us and evaluation of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of dealings in shares and
securities and other investment and timely entries have been made
therein. The aforesaid securities have been held by the Company except
to the extent of exemption granted under section 49 of the Companies
Act, 1956.
15. According to information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions. Accordingly, clause 4 (xv) of the Order is not
applicable.
16. As explained to us, the Company has not raised any term loans
during the year.
17. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company, there are no funds raised on a short-term basis, which have
been used for long-term investment, and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained undersection
301 oftheCompaniesAct, 1956.
19. As per information & explanations given to us, and on the basis of
the records and documents examined by us, the Company has not issued
any secured debentures during the year.
20. As per information & explanations given to us, and on the basis of
the records and documents examined by us, The Company has not raised
any money by public issue, during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For Gopal Rao & Associates
Chartered Accountants F.R.NO.127055W
N. G. Rao
(Proprietor) Membership No. 33665.
Place :Mumbai
Date: 29.05.2010
Mar 31, 2009
1. We have audited the attached Balance sheet of M/s. KBS Capital
Management Ltd. as at 31st March 2009 together with the Profit & Loss
Account for the year ended as on that date annexed hereto. These
financial statements are the responsibility of the Board of Directors
of KBS Capital Management Ltd. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amount and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonabje
basisforouropinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of subsection (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered necessary and appropriate, and according to the
information and explanations given to us during the course of our
audit, we enclose in theAnnexure a statement on the matters specified
in the paragraph 4 and 5 of the said order.
4. Furtherto our comments in theAnnexure referred to above, we report
that:
a. We have obtained all information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion the company has kept proper books of account as
required by the law so far as appears from our examination of those
books.
c. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of accounts.
d. In our opinion the Balance Sheet, and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
the sub-sections (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from directors, as
on 31st March 2009 and taken on the record by the Board of Directors,
we report that none of the Directors are disqualified as on 31st March
2009 from being appointed as a director in terms of clause (g) of
sub-section (1) of sec.274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes to Accounts, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. In the case of Balance Sheet of the state of affairs of the company
as at 31st March 2009;
and
ii. In the case of the Profit and Loss account of the loss for the
year ended as on that date.
Annexure to the Auditors Report. (Referred to in paragraph 3 of our
report of Even Date)
1. a. The Company has maintained proper record showing particulars,
including quantitative details and situation of fixed assets.
b. As explained to us Fixed Assets according to the practice of the
company are physically verified by the management at reasonable
intervals, which in our opinion, is reasonable, looking to the size of
the company and the nature of the business. No material discrepancies
were noticed on such verification.
c. During the year, there was no disposal of fixed assets.
2. a. The Company is a stock broking company and has its inventory in
shares. As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the explanations given to us, the
procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory
and the book records were not material and have been properly dealt
with in the books of account.
3. a. According to the information and explanation given to us, the
Company has not granted unsecured loans to companies, firms and other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
b. According to the information and explanation given to us, the
Company has not taken any unsecured loans from the companies, firms and
other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
c. As there are no stipulation for the recovery and payment of
principal amount and interest, the question of regularity in recovery
and payment of principal and interest does not arise. According to the
information given to us, the loans taken and granted to the parties
referred herein above are not prima-facie prejudicial to the interest
of the company.
d. There are no overdue amounts of such loans as on 31" March 2009.
4. In our opinion and according to the information and explanation
given to us, generally there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regards to purchase of shares, fixed assets and for sale
of the shares. Further, on the basis of our examinations of books and
records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct this major weakness in
the aforesaid internal control procedures.
5. According to the information and explanations provided by the
management, we are of the opinion that, the transactions that need to
be entered into the register maintained under section 301 have been so
entered.
6. The company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58Aand 58AAof the Companies Act, 1956 and rules framed there
under apply.
7. In our opinion, the Company has an adequate internal audit system
Commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of cost
records under section 209(1 )(d) of the Companies Act, 1956.
9. a. According to the records of the company examined by us, and as
per the information and explanations given to us, in our opinion, the
Company is generally regular in depositing the undisputed statutory
dues including Income tax, Wealth tax, Service tax and other statutory
dues with the appropriate authorities. However, the undisputed
statutory dues outstanding for more than six months are as per Annexure
A attached.
b. According to the information and explanations given to us and on
the basis of examination of the documents and records, there are no
disputed statutory dues, which are not been deposited with the
appropriate authorities.
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses during the year under
report.
11. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to bank.
12. As explained to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. On the basis of the records examined by us and evaluation of the
related internal controls, the Company has maintained proper records of
the transactions and contracts in respect of dealings in shares and
securities and other investment and timely entries have been made
therein. The aforesaid securities have been held by the Company except
to the extent of exemption granted under section 49 of the Companies
Act, 1956.
15. According to information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institutions. Accordingly, clause 4 (xv) of the Order is not
applicable.
16. As explained to us, the Company has not raised any term loans
during the year.
17. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company, there are no funds raised on a short-term basis, which have
been used for long-term investment, and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. As per information & explanations given to us, and on the basis of
the records and documents examined by us, the Company has not issued
any secured debentures during the year.
20. As per information & explanations given to us, and on the basis of
the records and documents examined by us, The Company has not raised
any money by public issue, during the year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported by the Company during the year.
For GOPAL RAO & ASSOCIATES.
Chartered Accountants
(N.G.Rao)
Proprietor
M.No.33665
Place: Mumbai.
Date :30th June 2009