Mar 31, 2016
To,
The Members of,
KGN INDUSTRIES LIMITED,
Report on the Financial Statements :
We have audited the accompanying financial statements of KGN INDUSTRIES LIMITED (âthe Company), which comprise the Balance Sheet as at 31st March, 2016, the statement of Profit & Loss and Cash Flow Statement for the year ended and a summary of Significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements :
The Company''s Board of Directors is responsible for the matters stated 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 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, 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.
Auditorsâ 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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:
a) In the case of the Balance Sheet, of the state of affairs of the company as on 31st March, 2016.
b) In the case of the Profit & Loss Account Statement Balance, of the profit for the year ended on 31st March, 2016.
c) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on 31st March, 2016.
Report on Other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure hereto a statement specified in paragraph 4 and 5 of the said order.
2. As required by section 143 (3) of the Act, 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 purpose of our audit ;
(ii) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appears from our examination of those books;
(iii) The Balance Sheet and Profit & Loss Statement Balance dealt with by this report are in agreement with the books of account;
(iv) On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(v) 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.
(vi) 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.
ANNEXURE TO INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date :
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2. (a) The Inventory has been physically verified by the management during the year. In our opinion, the frequency
of verification is reasonable.
(b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3. (a) The Company has granted unsecured loan to its Subsidiary Companies and parties in the register maintained under Section 189 of the Companies Act, 2013. The Maximum amount granted during the year and yearend balance of loan to such subsidiaries were as per details given below. The terms and conditions of such loans are not prima facie prejudicial to the interest of the Company.
Sr. No. |
Name of the Party |
Relation with the Company |
Maximum Outstanding (in Rs.) |
Closing Balance As on 31/03/2015 (in Rs.) |
1. |
KGN Projects Limited |
Subsidiary Company |
16,10,317/- |
16,10,317/- |
2. |
KGN Enterprises Limited |
Associates |
14,42,77,868/- |
14,17,66,985/- |
(b) The Company has not taken loans, secured or unsecured from the companies or other parties covered in the register maintained u/s 189 of the Companies Act, 2013
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For Kirit & Co.
Chartered Accountant
Kirit Kumar Proprietor
Place : Ahmedabad M.No. 038047
Date : 30th May, 2016 FRN: 132282W
Mar 31, 2015
We have audited the accompanying financial statements of KGN INDUSTRIES
LIMITED ("the Company), which comprise the Balance Sheet as at 31st
March, 2015, the statement of Profit & 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 flow of the Company in accordance with
accounting principles generally accepted in India including Accounting
Standards referred to in Section 211(3C) of the Companies Act, 2013
("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.
Auditors' Responsibility :
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards 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 of
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 assessment, 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 appropriates of the accounting policies used
and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion :
In our opinion and to the best of our information and according to the
explanations given to us, the 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 on 31st March, 2015.
b) In the case of the Profit & Loss Account Statement Balance, of the
profit for the year ended on 31st March, 2015.
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on 31st March, 2015.
Report on Other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended Companies (Auditor's Report) (Amended) Order, 2004, issued by
the Central Government of India in terms of sub - section (4A) of
Section 227 of Companies Act, 2013, we enclose in the Annexure hereto a
statement specified in paragraph 4 and 5 of the said order.
2. As required by Section 227(3) of the Act, 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 purpose of our
audit ;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
those books;
(iii) The Balance Sheet and Profit & Loss Statement Balance dealt with
by this report are in agreement with the books of account;
(iv) On the basis of the written representation received from the
directors, as on March 31, 2015, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31,2015 from being appointed as a Director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 2013.
(v) In our opinion, the Balance Sheet & Profit & Loss Statement Balance
complies with the mandatory Accounting Standards referred to in Section
211(3C) of the Companies Act, 2013.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date :
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
(c) In our opinion, the Company has not disposed off any substantial
part of fixed assets during the year and the going concern status of
the company is not affected.
2. There is no Inventories at the beginning as well as at the end of
the year.
3. (a) The Company has granted unsecured loan to its Subsidiary Company
and other parties covered in the register maintained u/s 189 of the
Companies Act, 2013 . The Maximum amount granted during the year and
year end balance of loan to such subsidiary were as per details given
below. The terms and conditions of such loans are not prima facie
prejudicial to the interest of the Company.
Sr. Name of the Party Relation with Maximum
No. the Company Outstanding
(in Rs.)
1. KGN Projects Limited Subsidiary Company 16,77,943/-
2. KGN Enterprises Limited Associates 15,88,39,809
Sr. Name of the Party Closing Balance
No. As on 31/03/2015
(in Rs.)
1. KGN Projects Limited 15,97,943/-
2. KGN Enterprises Limited 14,42,77,868/-
(b) The Company has not taken loans, secured or unsecured from the
companies or other parties covered in the register maintained u/s 189
of the Companies Act, 2013.
4. In our opinion and according to the information and explanation
given to us, there are adequate Internal Control Procedure commensurate
with size of a company and the nature of its business for purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, no major weakness has been notice in
the internal control system.
5. (a) In our opinion, and according to the information and
explanations given to us, the transactions that need to be entered into
the register maintained under Section 189 of the Companies act, 2013
have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of the
companies Act, 2013 and exceeding the value of rupees five lacs in
respect of any party during the year have been made at price which are
reasonable having regard to prevailing market price at the relevant
time.
6. The Company has not accepted deposits from the public, within the
meaning of section 58A and 58AA of the Act and rules framed there
under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of the business.
8. As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 2013 for the Company.
9. (a) According to the information and explanation given to us and
the records of the company examined by us, in our opinion, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education Fund,
Employees State Insurance, Income Tax, Sales Tax, wealth tax, service
tax, custom duty, excise duty and other material statutory dues
applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, Custom Duty and Excise Duty were in arrears, as at 31st March,
2015 for a period of more than six months from the date of they became
payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Custom Duty and Excise
Duty which have not been deposited on account of any dispute.
10. In our opinion the Company has no accumulated losses at the end of
the financial year and has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. Based on our examination of the records and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders.
12. Based on our examination or the records and 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 during the year.
13. In our opinion and according to the information and explanation
given to us, the Company is not a chit fund or a Nidhi / Mutual benefit
fund/society. Accordingly the provisions of the clause 4(xiii) of the
said Order are not applicable to the Company.
14. During the year under audit, Company has not dealt or traded in
shares, securities, debentures and other investments. Therefore we have
no comments to offer under clause (xiv) of the Order.
15. 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.
16. The Company has not obtained any term loan during the year and
therefore, we have no comments to offer under clause (xvi) of the
Order.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion funds raised on a short-term basis have been used for long term
investment and vise a versa, during the year.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 2013 during the year.
19. According to the information and explanations given to us, the
Company has not issued any debentures during the year.
20. According to the information and explanations given to us, the
Company has not raised any money by way of public issue during the year
and accordingly the provision of the relevant clause of the order is
not applicable to the Company.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Kirit & Co.
Chartered Accountant
Kirit Kumar
Proprietor
Place: Ahmedabad M.No. 038047
Date: 30.05.2015 FRN: 132282W
Mar 31, 2014
We have audited the accompanying financial statements of KGN INDUSTRIES
LIMITED (the Company), which comprise the Balance Sheet as at 31st
March, 2014, the statement of Profit & 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 flow of the Company in accordance with
accounting principles generally accepted in India including Accounting
Standards referred to in Section 211(3C) of the Companies Act, 2013.
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.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards 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 of
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 assessment, 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 appropriates of the accounting policies used
and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the 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 on 31st March, 2014.
b) In the case of the Profit & Loss Account Statement Balance, of the
profit for the year ended on 31st March, 2014.
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on 31st March, 2014.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended Companies (Auditor''s Report) (Amended) Order, 2004, issued by
the Central Government of India in terms of sub - section (4A) of
Section 227 of Companies Act, 2013, we enclose in the annexure hereto a
statement specified in paragraph 4 and 5 of the said order.
2. As required by section 227(3) of the Act, 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 purpose of our
audit ;
ii) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
those books;
iii) The Balance Sheet and Profit & Loss Statement Balance dealt with
by this report are in agreement with the books of account;
iv) On the basis of the written representation received from the
directors, as on March 31, 2014, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2014 from being appointed as a Director in terms of
sub-section (1) of section 164 of the Companies Act, 2013.
v) In our opinion, the Balance Sheet & Profit & Loss Statement Balance
complies with the mandatory Accounting Standards referred to in Section
211(3C) of the Companies Act, 2013.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date:
1) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
c) In our opinion, the company has not disposed off any substantial
part of fixed assets during the year and the going concern status of
the company is not affected.
2) There is no Inventories at the beginning as well as at the end of
the year.
3) a) The company has granted unsecured loan to its Subsidiary Company
and other parties covered in the register maintained u/s 189 of the
Companies Act, 2013. The maximum amount granted during the year and
year end balance of loan to such subsidiary was as per details given
below. The terms and conditions of such loans are not prima facie
prejudicial to the interest of the Company.
Maximum Closing Balance
Relation with Outstanding As on 31/03/2014
S. Name of the Party the Company
No. (in Rs.) (in Rs.)
1. KGN Projects
Limited Subsidiary 23,21,306/- 16,62,393/-
Company
2. KGN Enterprises Associates 19,28,95,120/- 15,88,39,809/-
Limited
b) The Company has not taken loans, secured or unsecured from the
companies or other parties covered in the register maintained u/s 301
of the Companies Act, 2013.
4) In our opinion and according to the information and explanation
given to us, there are adequate Internal Control Procedure commensurate
with size of a company and the nature of its business for purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, no major weakness has been notice in
the internal control system.
5) a) In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered into the register
maintained under Section 189 of the Companies act, 2013 have been so
entered.
b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered in the register maintained under section 189 of the
companies Act, 2013 and exceeding the value of rupees five lacs in
respect of any party during the year have been made at price which are
reasonable having regard to prevailing market price at the relevant
time.
6) The Company has not accepted deposits from the public, within the
meaning of section 58A and 58AA of the Act and rules framed there
under.
7) In our opinion, the company has an internal audit system
commensurate with the size and nature of the business.
8) As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 2013 for the Company.
9) a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education Fund, Employees State
Insurance, Income Tax, Sales Tax, wealth tax, service tax, custom duty,
excise duty and other material statutory dues applicable to it.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, Custom Duty and Excise Duty were in arrears, as at 31st March,
2014 for a period of more than six months from the date of they became
payable.
c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Custom Duty and Excise
Duty which have not been deposited on account of any dispute.
10) In our opinion the Company has no accumulated losses at the end of
the financial year and has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11) Based on our examination of the records and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders.
12) Based on our examination or the records and 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 during the year.
13) In our opinion and according to the information and explanation
given to us, the Company is not a Chit fund or a Nidhi / Mutual benefit
fund/society. Accordingly the provisions of the clause 4(xiii) of the
said Order are not applicable to the Company.
14) During the year under audit, Company has not dealt or traded in
shares, securities, debentures and other investments. Therefore we have
no comments to offer under clause (xiv) of the Order.
15) 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.
16) The Company has not obtained any term loan during the year and
therefore, we have no comments to Offer under clause (xvi) of the
Order.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our opinion
funds raised on a short-term basis have been used for long term
investment and vise-a- versa, during the year.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
189 of the Companies Act, 2013 during the year.
19) According to the information and explanations given to us, the
Company has not issued any debentures during the year.
20) According to the information and explanations given to us, the
Company has not raised any money by way of public issue during the year
and accordingly the provision of the relevant clause of the order is
not applicable to the Company.
21) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Kirit & Co.
Chartered Accountants
Sd/-
Kirit Kumar
Proprietor
Date: 28th May, 2014 FRN : 132282W
Place: Ahmedabad M. No. 038047
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of KGN INDUSTRIES
LIMITED (the Company), which comprise the Balance Sheet as at 31st
March, 2013, the statement of Profit & 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 flow of the Company in accordance with
accounting principles generally accepted in India including Accounting
Standards referred to in Section 211(3C) 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards 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 assessment, 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 appropriates of the accounting policies used
and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 on 31st March, 2013.
b.) In the case of the Profit & Loss Account Statement Balance, of the
profit for the year ended on 31st March, 2013.
c.) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on 31st March, 2013.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended Companies (Auditor''s Report) (Amended) Order, 2004, issued by
the Central Government of India in terms of sub - section (4A) of
Section 227 of Companies Act, 1956, we enclose in the Annexure hereto a
statement specified in paragraph 4 and 5 of the said order.
2. As required by Section 227(3) of the Act, 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 purpose of our
audit ;
(ii) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
those books;
(iii) The Balance Sheet and Profit & Loss Statement Balance dealt with
by this report are in agreement with the books of account;
(iv) On the basis of the written representation received from the
directors, as on March 31, 2013, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2013 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(v) In our opinion, the Balance Sheet & Profit & Loss Statement Balance
complies with the mandatory Accounting Standards referred to in Section
211(3C) of the Companies Act, 1956.
KGN INDUSTRIES LIMITED ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
(c) In our opinion, the Company has not disposed off any substantial
part of fixed assets during the year and the going concern status of
the company is not affected.
2. There is no Inventories at the beginning as well as at the end of
the year.
3. (a) The Company has granted unsecured loan to its Subsidiary
Company and other parties covered in the register maintained u/s 301 of
the Companies Act, 1956. The Maximum amount granted during the year
and year end balance of loan to such subsidiary was as per details
given below. The terms and conditions of such loans are not prima facie
prejudicial to the interest of the Company.
(b) The Company has not taken loans, secured or unsecured from the
companies or other parties covered in the register maintained u/s 301
of the Companies Act, 1956.
4. In our opinion and according to the information and explanation
given to us, there are adequate Internal Control Procedure commensurate
with size of a company and the nature of its business for purchase of
inventory and fixed assets and for the sale of goods and services.
During the course of our audit, no major weakness has been notice in
the internal control system.
5. (a) In our opinion, and according to the information and
explanations given to us, the transactions that need to be entered into
the register maintained under Section 301 of the Companies act, 1956
have been so entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of the
companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the year have been made at price which are
reasonable having regard to prevailing market price at the relevant
time.
6. The Company has not accepted deposits from the public, within the
meaning of section 58A and 58AA of the Act and rules framed there
under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of the business.
8. As informed to us, the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the Company.
9. (a) According to the information and explanation given to us and
the records of the company examined by us, in our opinion, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education Fund,
Employees State Insurance, Income Tax, Sales Tax, wealth tax, service
tax, custom duty, excise duty and other material statutory dues
applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Service
Tax, Custom Duty and Excise Duty were in arrears, as at 31st March,
2013 for a period of more than six months from the date of they became
payable.
(c) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Service Tax, Custom Duty and Excise
Duty which have not been deposited on account of any dispute.
10 In our opinion the Company has no accumulated losses at the end of
the financial year and has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. Based on our examination of the records and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders.
12. Based on our examination or the records and 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 during the year.
13. In our opinion and according to the information and explanation
given to us, the Company is not a chit fund or a Nidhi / Mutual benefit
fund/society. Accordingly the provisions of the clause 4(xiii) of the
said Order are not applicable to the Company.
14. During the year under audit, Company has not dealt or traded in
shares, securities, debentures and other investments. Therefore we have
no comments to offer under clause (xiv) of the Order.
15. 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.
16. The Company has not obtained any term loan during the year and
therefore, we have no comments to offer under clause (xvi) of the
Order.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion funds raised on a short-term basis has been used for long term
investment and vice-a-versa, during the year.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. According to the information and explanations given to us, the
Company has not issued any debentures during the year.
20. According to the information and explanations given to us, the
Company has not raised any money by way of public issue during the year
and accordingly the provision of the relevant clause of the order is
not applicable to the Company.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Kirit & Co.
Chartered Accountants
Sd/-
Kirit Kumar
Proprietor
M. No. 038047
FRN : 132282W
Place: Ahmedabad
Date: 23rd May, 2013
Mar 31, 2010
We have audited the attached Balance Sheet of KGN Industries Limited as
at 31st March, 2010 and the Profit and Loss account of the Company 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.
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 misstatement. An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act. 1956, and on the basis of the books and records of the
company as we considered appropriate and according to the information
and explanations given to us , we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said order.
Further to our comments on the annexure referred to above, 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 accounts as required by law have
been kept by the Company, so far as appears from our examination of the
those books;
c) The Balance Sheet and the Profit & Loss Account dealt by this report
are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and the Profit & Loss Account
dealt by this report comply with the accounting standards referred to
in sub-section (3C) of section 211 of the Companies Act,1956;
e) On the basis of written representation received from the directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a Director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts, give the information
required by the companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010; and
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals; No material discrepancies were noticed on such
verification by the management.
(c) In our opinion, the Company has not disposed off any substantial
part of fixed assets during the year and the going concern status of
the company are not affected.
2. (a) The Inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The Company has granted loans, secured or unsecured to
companies, firms or other parties in the register maintained under
Section 301 of the Companies Act, 1956.
(b) The Company has not taken loans, secured or unsecured from
companies, firms or other parties covered 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 are adequate internal control procedures
commensurate with a size of a company and the nature of its business,
for purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, no major weakness has
been noticed in the internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered in to the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
6. The Company has not accepted deposits from the public, within the
meaning of sections 58A and 58AA of the Act and the rules framed there
under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of business.
8. We are informed that the company is not required to maintain cost
records as prescribed by the Central Government under section 209(1)
(d) of the Companies Act, 1956 having regard to the nature of the
business of the Company.
9. (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education fund,
employees state income tax, sales tax, wealth tax, service tax, custom
duty, excise duty and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payables in respect of income tax, sales tax, wealth
tax, service tax, customs duty and excise duty were in arrears, as at
31st March, 2010 for a period of more than six months from the date of
they became payable.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales tax, service tax, customs duty and excise
duty which have not been deposited on account of any dispute.
10. In our opinion, the company has no accumulated losses at the end of
the financial year and it has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
during the year.
13. The company is not a chit fund, nidhi, mutual benefit fund or
society. Therefore, the provisions of clause 4(xiii) are not applicable
to the company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore the provision
of clause 4(xiv) 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 during the year.
16. As per the records of the company and as per the information and
explanations given to us, the company has not taken any term loan
during the year.
17. On the basis of overall examination of the balance sheet of the
company, the funds raised on short- term basis have not been used for
long-term investment and vise-a-versa, during the year.
18. The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956, during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. During the year, no fraud on or by the company has been notice or
reported during the course of our audit.
For, KIRITKUMAR & CO.
Chartered Accountants
Sd/-
Date : 27.08.2010 Proprietor
Place: Mumbai M. No. 38047