Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To
The Members of
KG Petrochem Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of KG Petrochem Limited(''the Company'') which comprises the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and Statment of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statement
The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance (including Other Comprehensive Income), cash flows and Statment of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 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 have 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 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 Company''s Director, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidences we have obtained are 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 aforesaid financial statements 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, of the state of affairs of the Company as at March 31, 2018 and its Profit (including other comprehensive income) and its Cash Flows and Statement of Changes in Equity for the year ended on that date.
Other Matter
The financial information of the company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1 2016 included in these standalone financial statements, are based on the previously issued statutory financial statements for the year ended March 31, 2017 and March 31 2016 prepared in accordance with Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us on which we expressed an unmodified opinion. The adjustments to those financial statements for the difference in accounting principles adopted by the company on the transition have been audited by us.
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 of the Act, we give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.
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 best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss(including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), and the Cash Flow Statement and the Statement of Changes in Equity comply with the Accounting Standards notified 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 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a Director in terms of 164(2) of the Companies Act, 2013;
(f) With respect to the adequate of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) 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 has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the financial statements, on the basis of information available with the Company. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management.
ANNEXURE - A REFERRED TO IN THE AUDITOR''S REPORT ON THE ACCOUNTS OF KG PETROCHEM LIMITEDFOR THE YEAR ENDING 31st MARCH, 2018
As required by the Companies (Auditor''s report) Order, 2016 issued by the Central Government of India in terms of section 143(11)of the Companies Act, 2013, we report that:
1) In respect of fixed assets:
(a) According to information and explanation given to us, fixed asset register of the Company has been properly maintained.
(b) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable.
(c) According to information and explanation given to us, title deeds of immovable properties are held in the name of the Company.
2) In respect of its inventories:
(a) As explained to us, the inventory has been physically verified by the management at regular intervals during the year.
(b) In our opinion and according to the information and explanations given to us, the procedures followed by the management for physical verification of inventory are reasonable and adequate in relation to size of the Company and nature of its business.
(c) According to information and explanation given to us, all discrepancies have been rectified by the
Company and accordingly considered in books of accounts.
3) In respect of loans:
According to the information and explanations given to us, the Company has not granted any loans, secured and unsecured, to companies, firms and other parties covered in the register maintained under section 189 of Companies Act, 2013.
4) As per information and explanations provided to us, in respect of loans, investments and guarantees, provisions of Section 185 and 186 of the Companies Act, 2013 have been complied with.
5) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any relevant provisions of the Companies Act, 2013 and the rules made there under.
6) In respect of cost records:
We have been explained that the maintenance of cost records has not been prescribed by the Central
Government under Section 148(1) of the Companies Act,2013 for the period under review for any of the products.
7) In respect of statutory dues:
(a) The Company is generally regular in depositing with the appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues, as recorded in books of accounts, applicable to it.
Further no undisputed amounts payable in respect thereof were outstanding at the year-end for a period more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income Tax, Wealth
tax, Sales Tax, Value Added Tax, Service Tax, Custom duty and Excise Duty and Goods and Service Tax which have not been deposited on account of any dispute except the following:
Nature of Dispute |
Amount (In Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Civil Suit against the company |
13,75,622/-with interest |
F.Y. 2009 -10 |
Bombay High Court |
8) In respect of repayment of dues:
As per information and explanation given to us, the company has not defaulted in repayment of any amount to a financial institution or bank or debenture holders.
9) In our opinion, and according to the information and explanation given to us, term loans have been applied for the purposes for which they were obtained.
10) According to the information and explanations provided to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
11) In respect of managerial remuneration:
According to the information and explanations given to us we report that managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
12) In respect of Nidhi Company:
The Company is not a Nidhi Company. Therefore this clause is not applicable to the Company.
13) In respect of related parties:
All transactions with the related parties are in compliance with Section 188 and 177 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act, 2013.
14) In respect of preferential allotment / private placement of shares:
The company has not made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review.
15) In respect of Non-cash transactions with directors:
The Company has not entered into any non-cash transactions with directors or persons connected with him.
16) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE - B TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF KG PETROCHEM LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of KG Petrochem Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A Company''s internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, judging by the nature and quantum of transactions appearing in the financial statements, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For R Sogani& Associates
Chartered Accountants
FRN: 018755C
(Bharat Sonkhiya)
Place : Jaipur Partner
Date : 30 May 2018 Membership No: 403023
Mar 31, 2016
To The Members of KG Petrochem Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of KG PETROCHEM LIMITED, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Companyâs 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 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 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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 aforesaid standalone financial statements 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, of the state of affairs of the Company as at 31st March, 2016, and its profit and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements 1. 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 best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow dealt with by this report are in agreement with the books of account
(d) In our opinion, the aforesaid standalone financial statements 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 the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
(g) With respect to the other matters to be included in the Auditorâs 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 has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF KG PETROCHEM LIMITED Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of KG PETROCHEM LIMITED as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Emphasis of Matter
We draw attention to the following matter
Broadly, the Company is having most of the system in place as required for the compliance of Internal Financial Control on Financial Reporting. However, those systems/controls are having scope of further improvement. Also, Company has not documented adequate internal financial controls based on Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Based on our audit procedures, we are of the opinion that Company has rectified the observations of our audit on internal financial controls over financial reporting to ensure that they do not significantly affect financial reporting on Interim Financial Control as on Balance Sheet date and thus our opinion is not modified in respect of matter being emphasized. Further, Company is also in the process of documenting Internal Financial Control as per guidelines issued by Institute of Chartered Accountants of India.
ANNEXURE REFERRED TO IN THE AUDITOR''S REPORT ON THE ACCOUNTS OF KG PETROCHEM LIMITED FOR THE YEAR ENDING 31ST MARCH, 2016
As required by the Companies (Auditorâs report) Order, 2016 issued by the Central Government of India in terms of section 143(1) of the Companies Act, 2013, we report that:
1. In respect of fixed assets:
A. According to information and explanation given to us, fixed asset register of the Company are under the process of reconciliation. Also, we are of the view that this document needs to be improved.
B. According to information and explanation given to us, title deeds of immovable properties are held in the name of the Company.
C. According to information and explanation given to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals.
2. In respect of its inventories:
A. According to information and explanation given to us, the inventory has been physically verified by the management at regular intervals during the year. However, no formal document has been provided in this regard.
B. According to information and explanation given to us, all discrepancies have been rectified by the Company and accordingly considered in books of accounts.
3. In respect of loans:
According to the information and explanations given to us, the Company has not granted any loans, secured and unsecured, to companies, firms and other parties covered in the register maintained under section 2 of clause (76) of Companies Act, 2013.
4. According to the information and explanations given to us, the Company has not granted any loans (including any loan represented by a book debt), to any of its directors or to any other person in which the director is interested. The Company has not given any guarantee or provided security in connection with any loan taken by Director or such other person. Also, the Company has not made any investment during the financial year.
5. According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any relevant provisions of the Companies Act, 2013 and the rules made there under.
6. In respect of cost records:
We have been explained that the maintenance of cost records has not been prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 for the period under review for any of the products.
7. In respect of statutory dues:
A. The Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it.
B. According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty which have not been deposited on account of any dispute except the following:
A. Duty and Excise Duty which have not been deposited on account of any dispute except the following:
Nature of Dispute |
Nature of the dues |
Amount (in Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Finance Act, 1994 (Service Tax) |
Service Tax |
33,75,730/ - |
FY 2005 - 06 to FY 2008 - 09 |
CESTAT |
8. In respect of repayment of dues:
According to information and explanation given to us Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.
9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or taken any term loan during the year.
10. According to the information and explanations given to us we report that no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In respect of Managerial Remuneration:
According to the information and explanations given to us we report that managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act.
12. In respect of Nidhi Company:
The Company is not a Nidhi Company. Therefore, this clause is not applicable to the Company.
13. In respect of related parties:
All transactions with the related parties are in compliance with Section 188 and 177 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act, 2013.
14. In respect of preferential allotment / private placement of shares:
The Company has not made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review.
15. In respect of Non-cash transactions with directors:
According to information and explanation given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and if so, whether the registration has been obtained.
For R Sogani & Associates
Chartered Accountants
FRN: (018755C)
(BHARAT SONKHIYA)
Place : Jaipur PART NER
Date : 27.05.2016 Membership No: 403023
Mar 31, 2015
We have audited the accompanying financial statements of KG Petrochem
Limited ('the Company') which comprises the Balance Sheet as at 31 st
March, 2015, the Statement of Profit and Loss and 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 Statement
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.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and Cash Flows of the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014 ("the Act") read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. 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 evidences we have obtained are 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 aforesaid financial statements 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and >
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('the
Order'), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 best of our knowledge and belief
were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified 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 the Directors
as on 31 March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2015, from being
appointed as a Director in terms of 164(2) of the Companies Act, 2013;
and
(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) there are no pending litigations on the Company's financial
position in its financial statements;
(ii) the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts; and
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
As required by the Companies (Auditor's report) Order, 2015 issued by
the Central Government of India in terms of section 143(11) of the
Companies Act, 2013, we report tfiat:
(i) In respect of fixed assets:
(a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable having regard to the size of the
Company and the nature of assets. As explained, no material
discrepancies were noticed on such physical verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventory has been physically verified by
the management at regular intervals during the year.
In our opinion. The frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory are reasonable and adequate in relation to
size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company has maintained proper records of inventory. And
there were no material discrepancies noticed on physical verification
of inventory as compared to the book records.
(iii) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013:
(a) According to the information and explanations given to us, the
Company has not granted any loans, secured and unsecured, to companies,
firms and other parties covered in the register maintained under section
189 of Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there exists adequate internal control procedure
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory and fixed assets and with regard
to the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system of the Company.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of the directives issued by the Reserve Bank of India and the
provisions of section 73 to 76 or any relevant provisions of the
Companies Act, 2013 and the rules made there under.
(vi) We have been explained that the maintenance of cost records has
been prescribed by the Central Government under Section 148(1) of the
Companies Act, 2013 for the period under review and we are of the
opinion that prima-facie the prescribed accounts and records have been
made and maintained. However, we have not made the detailed examination
of the records with a view to determine whether they are accurate and
complete.
(vii) In respect of statutory dues:
(a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Value Added Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities though there has been slight delay in a few cases.
However, no undisputed amounts are payable in respect of Income Tax,
Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty and
Excise Duty were in arrears as at the end of the financial year for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income Tax, Wealth Tax, Sales Tax, Value Added Tax,
Service Tax, Customs Duty and Excise Duty which have not been deposited
on account of any dispute except the following:
Nature of Nature of Amount Period to which the Forum where
Dispute
the dues (in Rs.) amount relates
pending
Finance Act, FY 2005-06 FY
1994 Service
Tax 33,75,730/- 2008 09 CESTAT
(Service
Tax
Central FY 2001 -02
Excise Act Excise to FY
Duty 2,43,190/-
(c) According to the information and explanations given to us, no
amount was required to be transferred to Investor Education and
Protection Fund by the Company.
(viii) The Company has no accumulated losses at the end of the year and
the Company has not incurred cash losses during current and the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
banks or financial institutions or debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
(xi) In our opinion and according to information and explanation given
to us, the term loans have been applied for the purpose for which they
were raised.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R Sogani & Associates
Chartered Accountants
FRN: (018755C)
(BHARAT SONKHIYA)
Place: Jaipur PARTNER
Date: 30.05.2015 Membership No: 403023
Mar 31, 2014
We have audited the accompanying financial statements of KG Petrochem
Ltd. (''the Company'') which comprises the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and Cash Flow Statement
for the year 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 a true and fair view of the financial position,
financial performance and Cash Flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control 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
a) 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.
b) 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 judgement, 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, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. 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 evidences we have obtained are 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 financial statements 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Act, we give in the anaxure a
statement on the matter specified in peragraph 4 and 5 of the 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, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013; and
e) On the basis of written representations received from the Directors
as on 31st March, 2014, and taken on record by the Board of Directors,
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 Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
As required by the Companies (Auditor''s report) Order, 2003 issued by
the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we report that:
1 In respect of its fixed assets:
(A) The Company has prepared records showing full particulars,
including quantitative details and situation of fixed assets as
explained by the Management.
(B) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable, having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such physical verification.
(C) In our opinion, the Company has not disposed off any
substantial/major part of its fixed assets during the year, hence, the
going concern status of the Company is not affected.
2 In respect of its inventories:
(A) As explained to us, the inventory has been physically verified by
the management at regular intervals during the year. In our opinion,
the frequency of verification is reasonable.
(B) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory are reasonable and adequate in relation to
size of the Company and the nature of its business.
(C) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company has maintained proper records of inventory. And,
there were no material discrepancies noticed on physical verification
of inventory as compared to the book records.
3 In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(A) According to the information and explanations given to us, the
Company has not granted any loans, secured and unsecured, to companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956.
(B) Long term unsecured loans taken from persons covered in the
register maintained under section 301 of the Companies Act, 1956
amounting to Rs. 299.23 lacs outstanding at the year end and the
maximum amount involved is Rs. 535.57 lacs.
(C) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which loans have been taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(D) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount and
interest in respect of loans taken from the parties listed in the
register maintained under section 301 of the Companies Act, 1956.
4 In our opinion and according to the information and explanations
given to us, there exists adequate internal control procedure
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory and fixed assets and with regard
to the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in such
internal control system of the Company.
5 In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956:
(A) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(B) In our opinion and according to explanations given to us, the
transactions exceeding the value of Rs. Five lacs in respect of any
party during the year have been made at prices which are prima-facie
reasonable having regard to prevailing market prices at the relevant
time where such prices are available.
6 According to the information and explanations given to us, the
Company has not accepted deposits from the public during the year.
7 In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
the size and nature of its business which needs to be strengthened.
8 We have broadly reviewed the accounts and records maintained by the
company pursuant to the Rules made by the central Government for the
maintenance of cost records under section 209(1)(d) of the companies
Act ,1956 and we are of the opinion that prima-facie the prescribed
accounts and records have been made and maintained. However, we have
not made detailed examination of the records with a view to determine
whether they are accurate and complete.
9 In respect of statutory dues:
(A) The Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
(B) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable.
(C) According to the information and explanations given to us, there
are no dues of Sales tax, Income Tax, Custom Duty, Wealth Tax, Excise
Duty, Service Tax and Cess which have not been deposited on account of
any dispute except the following:
Statement on Disputed Dues
Period to Forum where
Nature of the Nature of Amount which the dispute is
Statute the dues (in Rs.) amount pending.
relates
Finance Act, FY 2005 -06
1994 (Service Service Tax 33,75,730/- to FY 2008 - CESTAT
Tax) 09
FY 2001 -02
Central Excise to FY 2004 -
Act, 1944 Excise Duty 2,43,190/- 05 (upto CESTAT
Feb. 2005)
10 The Company does not have accumulated losses as at the end of the
year and the Company has not incurred cash losses during current and
the immediately preceding financial year.
11 Based on our audit procedures and on the basis of information and
explanations given by the management, the Company has not defaulted in
the repayment of dues to banks, financial institutions and debenture
holders during the year.
12 In our opinion and according to information and explanation given to
us, no loans and advances have been granted by the Company 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/Nidhi or Mutual
Benefit Fund/Society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14 The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15 In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
16 In our opinion and according to information and explanation given to
us, the term loans have been applied for the purpose for which they
were raised.
17 According to the information and explanations given to us and on
overall examination of Balance Sheet of the Company, we report that no
funds raised on short term basis have been used for long term
investment.
18 According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to any party
during this year.
19 According to the information and explanation given to us, the
Company has not issued debentures.
20 The Company has not raised any monies by way of any public issues
during the year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For R Sogani & Associates
Chartered Accountants
FRN 018755C
(CA Rakesh Kedia)
Place: Jaipur Partner
Date: 30/05/2014 M. No. 074620
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s KG
Petrochem Limited (''the Company'') which comprises the Balance Sheet as
at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year ended and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility forthe Financial Statements
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''the Act''). This responsibility includes
the design, implementation and maintenance of internal control 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
a) 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.
b) 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 judgement, 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 evidences we have obtained are 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 financial statements 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
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
ouraudit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination 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
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act; and
e) on the basis of written representations received from the Directors
as on 31st March, 2013, and taken on record by the board of directors,
none of the directors are disqualified as on 31st March, 2013, from
being appointed as a Director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE AUDITOR''S REPORT ON THE
ACCOUNTS OF KG PETROCHEM LIMITED FOR THE YEAR ENDING 31ST MARCH, 2013
As required by the Companies (Auditor''s report) Order, 2003 issued by
the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956, we report that:
1 In respect of fixed assets:
(A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
(B) As explained to us, all the fixed assets have been physically
verified by the management during the year at reasonable intervals,
which in our opinion, is reasonable having regard to the size of the
Company and the nature of assets. No material discrepancies were
noticed on such physical verification.
(C) In our opinion the Company has not disposed off any
substantial/major part of fixed assets during the year and the going
concern status of the Company is not affected.
2 In respectof its inventories:
(A) As explained to us, the inventory has been physically verified by
the management at regular intervals during the year. In our opinion,
the frequency of verification is reasonable.
(B) In our opinion and according to the information and explanations
given to us, the procedures followed by the management for physical
verification of inventory are reasonable and adequate in relation to
size of the Company and nature of its business.
(C) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company has maintained proper records of inventory. And
there were no material discrepancies noticed on physical verification
of inventory as compared to the book records.
3 In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956:
(A) According to the information and explanations given to us, the
Company has not granted any loans, secured and unsecured, to companies,
firms and other parties covered in the register maintained under
section 301 of Companies Act, 1956.
(B) Long term unsecured loans taken from persons covered in the
register maintained under section 301 of the Companies Act, 1956
amounting to'' 148.00 lacs outstanding at the year end and the maximum
amount involved isRs. 148.00 lacs.
(C) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(D) According to the information and explanations given to us, no
stipulation has been made for the repayment of principal amount and
interest in respect of loans taken from the parties listed in the
register maintained under section 301 of the CompaniesAct, 1956.
4 In our opinion and according to the information and explanations
given to us, there exists adequate internal control procedure
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory and fixed assets and with regard
to the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control system of the Company.
5 In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956:
(A) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered in the register maintained under
section 301 of the Companies Act 1956 have been so entered.
(B) In our opinion and explanation given to us, the transactions
exceeding the value of'' Five lacs in respect of any party during the
year have been made at prices which are prima-facie reasonable having
regard to prevailing market prices at the relevant time where such
prices are available.
6 According to the information and explanations given to us, the
Company has not accepted new deposits from the public during the year.
7 In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
its size and nature of its business.
8 According to the information and explanations given to us the cost
records are under the process of preparation. Hence, we have not
reviewed the books of account required to be maintained by the Company
pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under clause (d) of
subsection (1) of Section 209 of the Act.
9 In respect of statutory dues:
(A) The Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees'' State Insurance, Income
Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues applicable to it.
(B) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Value Added Tax, Service Tax, Customs Duty and Excise Duty were in
arrears as at the end of the financial year for a period of more than
six months from the date they became payable.
10 The Company does not have accumulated losses as at the end of the
year and the Company has not incurred cash losses during current and
the immediately preceding financial year.
11 Based on our audit procedures and on the basis of information and
explanations given by the management, the Company has not defaulted in
the repayment of dues to banks, financial institutions and debentures
holders during the year.
12 In our opinion and according to information and explanation given to
us, no loans and advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and other security.
13 In our opinion the Company is not a Chit Fund, Nidhi or Mutual
Benefit Fund/Society. Therefore, the provisions of clause 4(xiii) of
the CARO, 2003 are not applicable to the Company.
14 The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the order are not applicable.
15 In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bankorfinancial institutions.
16 In our opinion and according to information and explanation given to
us, the term loans have been applied for the purpose for which they
were raised.
17 According to the information and explanations given to us and on
overall examination of balance sheet, we report that no funds raised on
short term basis have been used for long term investment.
18 According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to any party
during this year.
19 According to the information and explanation given to us, the
Company has not issued debentures.
20 The Company has not raised money by any public issues during the
year.
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For PC. MODI & CO.
Chartered Accountants
FRN 000239C
Place : JAIPUR.
Date : 27th May 2013 (CA RAKESH KEDIA)
Partner
Membership No.- 076420
Mar 31, 2012
1. We have audited the attached Balance Sheet of KG PETROCHEM LIMITED
as at 31st March 2012, the Statement of Profit and Loss and also Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
company, 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 (Auditor's Report) Order, 2003 issued
by Central Government of India in terms of sub- section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure, a statement
on the matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of accounts as required by the law
have been kept by the company as far as appears from our examination of
those books.
iii) 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.
iv) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of Companies Act, 1956.
v) On the basis of the written representations received from the
directors as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the director is disqualified from
being appointed as Director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956 as on 31st March 2012.
vi) Attention is drawn that Sales have been accounted for as soon as
material is dispatched from factory gate as per Accounting Policy
No.1.4 of Note No. 1 of the Financial statements.
vii) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information as
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:
a) In the case of Balance Sheet, of the state of affairs as at 31st
March, 2012;
b) In the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Statement referred to in paragraph (3) of our report of even date to
the members of the KG PETROCHEM LTD. on the accounts for theyearended
31st March 2012.
(i.) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner, which, in our opinion is
reasonable, having regard to the size of the company and nature of the
assets. No material discrepancies were noticed on such verification.
(c) During the year, Company has not disposed off any substantial
/major part of fixed assets; hence the going concern status of the
company is not affected.
(ii.) (a) As informed to us the inventory has been physically verified
by the management during the year at reasonable intervals. In our
opinion, the frequency of such verification is reasonable.
(b) The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
(c) The company is maintaining proper records of the inventory. The
discrepancies noticed by the management on verification between the
physical stocks and the book records were not material.
(iii) (a) The company has not granted any unsecured loan to companies,
firms or other parties overed in the register maintained u/s 301 of the
Companies Act, 1956. Accordingly clause 4 (iii) (a) to (d) of the
Companies (Audior's Report) Order, 2003 are not applicable.
(b) Unsecured loans taken from 2 (Two) persons covered in the register
maintained under section 301 of the Companies Act, 1956 amounting to
Rs. 148.00 Lacs outstanding at the year end and the maximum amount
involved is Rs. 148.00 Lacs.
(c) Interest and other terms and condition of loan taken are not prima
facie prejudicial to the interest of the company.
(d) Company is regular in payment of principal amount and interest.
(iv.) In our opinion and according to the information and explanations
given to us, there are adequate internal
control procedures commensurate with the size of the company and nature
of its business with regard to the purchase of inventories, fixed
assets, other assets and with regard to sale of goods. During the
course of our audit, we have not observed any major weakness in
internal controls
(v.) (a) On the basis of checks carried out by us and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been entered. (b) In
our opinion and according to the explanations and information given to
us, the transactions in pursuance of the contracts or arrangements
entered in the register maintained under section 301 of the companies
Act, 1956 and exceeding the value of rupees five lacs in respect of a
party during the year have been made at prices which are prima facie
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) According to the information and explanations given to us, company
has not accepted deposits under provisions of Sections 58A and of the
Companies Act, 1956.
(vii) In our opinion the company has internal audit system commensurate
with the size and nature of its business.
(viii) According to information and explanation given to us, prima
facie the company has maintained the cost records in respect of the
products manufactured by it, as prescribed by Central Government under
Section 209(l)(d)of the Companies Act 1956.
(ix) (a) According to the records examined by us the company is
generally regular in depositing with appropriate authorities all
applicable undisputed statutory dues including Provident Fund, Investor
Education & Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess & any other
statutory dues applicable to it.
According to the information and explanations given to us there were no
undisputed amount payable in respect of Income Tax, Sales Tax, Service
Tax, Custom Duty, Excise Duty, Cess & any other statutory dues were in
arrears, as at 31.03.12 for the period of more than six months from the
date they became payable. (b) According to the information and
explanations given to us, there are no dues of Sales tax, Income tax,
Customs duty, Wealth tax, Excise duty, Service tax & cess which have
not been deposited on account of any dispute except the following.
Period to which Forum
Nature of Statue Nature of Amount the amount whivh
Dues (In Rs.) relates (F.Y.) dispute
pending
Sercive Tax, 1961 Service 37,35,730/- 2005-06 to
2008-09 CESTAT
Central Excise
Act, 1944 Excise Duty 2,43,190/- 2001-02 to
2004-05 CESTAT
(Upto Feb-05)
(x) There are no accumulated losses at the end of the financial year.
Therefore, the provisions of clause 4 (x) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
financial institutions or bank.
(xii) According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
byway of pledge of shares, debentures and other securities.
(xiii) The company is not a chit fund or a nidhi/mutual benefit
society. Therefore, the provisions of clause 4 (xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
(xiv) The company is not dealing in or trading in the shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) In our opinion and according to the information and explanation
given to us, the company has prima facie applied the sum raised on term
loans for the purposes for which the loans were obtained.
(xvii) According to the records examined by us and information and
explanations given to us and on overall examination of Balance Sheet
and Cash Flow Statement of the company, we report that no funds raised
on short-term basis have been used for long-term investments.
(xviii) The company has not made any allotment of shares to the parties
covered in register maintained under section 301 oftheCompaniesAct,
1956.
(xix) The company has not issued debentures during the year.
(xx) The company has not raised any money through public issue during
the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
For KALANI & COMPANY,
Chartered Accountants
FRN 000722C
Place : JAIPUR.
Date : 28th May 2012
[K.L.J HAN WAR]
Partner
M.No.14080
Mar 31, 2010
1. We have audited the attached Balance Sheet of KG PETROCHEM LIMITED
as at 31st March 2010, the Profit and Loss Account and also Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 misstatements. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by the
company, 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 Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure, a statement
on the matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) In our opinion, proper books of accounts as required by the law
have been kept by the company as far as appears from our examination of
those books.
iii) The Balance Sheet, Profit and Loss Account, and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of Companies Act, 1956.
v) On the basis of the written representations received from the
directors as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the director is disqualified as on
31st March 2010 from being appointed as Director in terms of clause (g)
of sub-section (1) of section 274 of theCompaniesAct, 1956.
vi) Attention is drawn that Sales have been accounted for as soon as
material is dispatched from factory gate as per Accounting Policy No.5
of schedule no.20 of the Financial statements.
vii) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information as
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:
a) In the case of Balance Sheet, of the state of affairs as at 31 st
March, 2010;
b) In the case of Profit and Loss Account, of the profit for the year
ended on that date; and
c) In the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph (3) of our report of even date to
the members of the KG PETROCHEM LTD. on the accounts for the year ended
31 st March 2010.
(i.) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
fixed assets have been physically verified by the management during the
year in a phased periodical manner, which, in our opinion is
reasonable, having regard to the size of the company and nature of the
assets. No material discrepancies were noticed on such verification.
(c) During the year, Company has not disposed off any substantial
/major part of fixed assets; hence the going concern status of the
company is not affected.
(ii.) (a) As informed to us the inventory has been physically verified
by the management during the year at reasonable intervals. In our
opinion, the frequency of such verification is reasonable.
(b) The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
(c) The company is maintaining proper records of the inventory. The
discrepancies noticed by the management on verification between the
physical stocks and the book records were not material.
(iii) (a)to(g)The company has not granted/taken any loans secured or
unsecured to companies, firms or other parties covered in the register
maintained u/s301 of the Act. Accordingly paragraph (iii) (a) to (g) is
not applicable.
(iv.) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to the purchase of inventories, fixed assets, other assets
and with regard to sale of goods. During the course of our audit, we
have not observed any major weakness in internal controls
(v.) (a) On the basis of checks carried out by us and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been entered.
(b) In our opinion and according to the explanations and information
given to us, the transactions in pursuance of the contracts or
arrangements entered in the register maintained under section 301 of
the companies Act, 1956 and exceeding the value of rupees five lacs in
respect of a party during the year have been made at prices which are
prima facie reasonable having regard to the prevailing market prices at
the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, in respect of deposits accepted, the company has complied
with the provisions of Sections 58A and 58AAof the Companies Act, 1956
and the rules framed there under. Further no order has been passed by
the company law board in respect of deposits accepted by the company.
(vii) In our opinion the company has internal audit system commensurate
with the size and nature of its business.
(viii) According to information and explanation given to us, the
central government has prescribed under Section 209(1 )(d)of the
Companies Act 1956, the maintenance of the cost records in respect of
its products manufacture by the company. We have broadly reviewed the
books of accounts maintained and in our opinion; the prescribed
accounts and records have prima facie been made and maintained by the
company. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate and
complete.
(ix) (a) According to the records examined by us the company is
generally regular in depositing with appropriate authorities all
applicable undisputed statutory dues including Provident Fund, Investor
Education & Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess & any other
statutory dues applicable to it.
According to the information and explanations given to us there were no
undisputed amount payable in respect of Income Tax, Sales Tax, Service
Tax, Custom Duty, Excise Duty, Cess & any other statutory dues were in
arrears, as at 31.03.10 for the period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Income tax, Customs duty, Wealth tax, Excise
duty, Service tax & cess which have not been deposited on account of
any dispute exceptthe following.
Nature of
Statue Nature of
Dues Amount
(In Rs,) Period
to which Forum Where
the amount dispute is
relates
(F.Y.) pending
Income Tax
Act, 1961 Income 98,314/- 2002-2003 CIT
1,07,026/- 1998-1999 CIT
Central
Excise Act,
1944 Excise
Duty 2,43,190/- 2001-02 to CESTAT
2004-05
(Upto
Feb-05)
(x) There are no accumulated losses at the end of the financial year.
Therefore, the provisions of clause 4
(x) of the Companies (Auditors Report) Order, 2003 are not applicable
to the company.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to any
financial institutions or bank.
(xii) According to the information and explanations given 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.
(xiii) The company is not a chit fund or a nidhi/mutual benefit
society. Therefore, the provisions of clause 4 (xiii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xiv) The company is not dealing in or trading in the shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) In our opinion and according to the information and explanation
given to us, the company has prima facie applied the sum raised on term
loans for the purposes for which the loans were obtained.
(xvii) According to the records examined by us and information and
explanations given to us and on overall examination of Balance Sheet
and Cash Flow Statement of the company, we report that no funds raised
on short-term basis have been used for long-term investments.
(xviii) The company has not made any allotment of shares to the parties
covered in register maintained under section 301 of the Companies Act,
1956.
(xix) The company has not issued debentures during the year.
(xx) The company has not raised any money through public issue during
the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
For Kalani & Company
Chartered Accountants
FRN00722C
Place: JAIPUR. (K.L. Jhanwar)
Date :29th May 2010 Partner
(M. No. 14080)