Mar 31, 2015
1. We have audited the accompanying financial statements of M/s KLG
Capital Services Limited, which comprise the Balance Sheet as at March
31,2015, 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 Statements
2. The management and Board of Directors of the Company are
responsible for the matters stated 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 Companies (Accounts) Rules, 2014. This
responsibility 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; design, implementation and maintenance of adequate internal
financial controls, that are 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
3. 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.
4. 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 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 accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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 section143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we further 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, 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 aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors
as on March 31,2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company does not have any pending litigations which would
impact its financial position.
(ii) The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
(iii) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in paragraph 7 Our Report of even date to the
members of KLG Capital Services Limited on the accounts of the company
for the year ended March 31, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
(ii) (a) The Company was in the business of dealing in shares and
securities. There is no closing stock at the year end. Hence this
clause (a) and (b) are not applicable.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories
(shares and securities).
(iii) The company has not granted any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services.
Further, on the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, no major weakness has not been noticed or reported.
(v) The company has not accepted any deposits from the public.
(vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
(vii) (a) According to information and explanation given to us and on
the basis of our examination of records of the Company, amounts
deducted/accrued in the books of accounts in respect of undisputed
statutory dues including Provident fund, Employees State Insurance,
Wealth Tax, Sales Tax, Customs Duty and Excise Duty, Cess & other
material statutory dues except Income Tax and Service Tax applicable to
it have been regularly deposited during the year by the Company with
the appropriate authorities.
According to the information and explanation given to us, there are no
undisputed amounts in respect of Sale Tax, Income-Tax, Customs Duty,
Service Tax, Wealth-Tax, Excise Duty and Cess and other material
statutory dues were in arrears as at March 31,2015 for a period of more
than six months from the date they became payable, except for the dues
mentioned below:
Particulars Amount
Income tax Rs. 3,18,53,527/-
Service tax Rs. 95,73,371/-
(b) According to the information and explanation given to us, there are
no material dues of wealth tax, duty of customs and cess which have not
been deposited with the appropriate authorities on account of any
dispute.
(c) According to the information and explanations given to us there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(viii) According to the records of the company examined by us and as
per the information and explanations given to us, the company has not
availed of any loans from any financial institution or banks and has
not issued debentures.
(ix) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from a bank or financial institution during the year.
(x) In our opinion, and according to the information and explanations
given to us, the company has not raised any term loans during the year
(xi) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management.
For NBS & Co.
Chartered Accountants
Firm Reg.No.110100W
Devdas Bhat
Partner
Membership No. 48094
Place : Mumbai
Date: May 28, 2015
Mar 31, 2014
We have audited the accompanying financial statements of KLG CAPITAL
SERVICES LIMITED which comprise the Balance Sheet as at March 31, 2014,
and 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 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. 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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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:
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;
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;
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
In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the accounting standards referred
to in subsection (3c) of section 211 of the Companies Act, 1956;
On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the Companies Act, 1956.
Since the Central Government has not issued any notification as to the
rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in paragraph 1 of the Auditor''s Report to the
Members of KLG CAPITAL SERVICES LIMITED for the year ended March
31,2014.
As required by the Companies (Auditor Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The Company has maintained proper records showing full
particulars of the fixed assets.
(b) As informed to us, the management at reasonable intervals has
physically verified the fixed assets. We have been informed that the
discrepancies noticed on physical verification were not material.
(c) During the year the company has not disposed of a substantial part
of its fixed assets.
(ii) (a) The Company does not own any inventory during the above
mentioned financial year.
(b) In view of our comments in Para (ii) (a) above, clauses 4 (ii) (b)
and (c) of the said order are not applicable to the Company.
(iii) (a) According to the information and explanations given to us the
Company has not granted any loans secured or unsecured to parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of our comments in Para (iii) (a) above, clauses 4 (iii)
(b) (c) and (d) of the said order are not applicable to the Company.
(e) The Company has an outstanding unsecured loan of Rs.27,56,289/- as
on 31/03/2014 (Max. outstanding during the year : Rs. 64,79,027 and
P.Y. O/S : Rs. 4,01,87,007 /-) from M/s. Awaita Properties Private
Limited, party covered in the register maintained under section 301 of
the Companies Act, 1956.
(f) In our opinion and according to the information and explanation
given to us the terms and conditions of loan taken are not prima facie
prejudicial to the interest of the company.
(g) According to the information and explanation given to us the
repayment of the loan is regular.
(iv) According to information and explanations given to us there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business. During the course of our audit
no major weakness has been observed in the internal control system.
(v) (a) The transactions made in pursuance of contract or arrangements
that need to be entered into the register maintained under section
301 of the Companies Act, 1956 has been recorded in the register.
(b) According to the information and explanations given to us
transactions with parties with whom transactions exceeding the value of
Rupees Five Lacs have been entered into during the Financial year are
at prices, which are reasonable, having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion the Company has Internal Audit System commensurate
with its size and its nature of business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) According to the records of the Company, the undisputed
statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty
and Excise Duty, Cess have regularly deposited with the appropriate
authorities. There are no undisputed amount payable in respect of such
statutory dues which have remained outstanding for more than six months
as at March 31,2014 except for Service Tax dues amounting to Rs.
1,45,07,430/- (excl. interest & penalty) and Income Tax of Rs.
3,11,29,137/- which have remained outstanding for a period more than
six months from the date they became payable.
(b) There are no amount in respect of any disputed income tax, sales
tax, wealth tax, service tax, custom duty, excise duty and cess.
(x) The Company has no accumulated losses and has not incurred cash
losses in current financial year and in the immediate preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of its dues to
banks and financial institutions.
(xii) In our opinion and according to the information and explanations
given to us the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
(xiii) (a) The provisions of any Special Statute applicable to Chit
Fund, Nidhi Fund or Mutual Benefit Fund/Societies are not
applicable to the Company.
(b) In view of our comments in Para (xiii) (a) above, clauses 4 (xiii)
(b) (c) and (d) of the said order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for loan taken by
others from banks and financial institutions.
(xvi) The Company has not taken any term loan during the year.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination the Balance Sheet of the
Company, we report that no fund raised on short term basis have been
used for long term investment.
(xviii) During the year 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year that causes the financial statement to be materially misstated.
(xxii) In case of NBFC,
(a) The Company has received the Registration Certificate from RBI vide
Registration no. B-13.02024 dated 06/08/2012 (Previous reg. no.:
B-14.00140 dated 16/10/2002).
(b) The Company has not accepted any Public deposits
(c) (i) The Board of Directors have already passed the Board Resolution
dated 02/02/1998 regarding non acceptance of public deposits and
submitted with the RBI on 23/02/1998.
(ii) The Company has complied with the prudential norms related to
Income recognition, Accounting Standards, Asset Classification and
Provisioning for Bad and Doubtful Debts as applicable.
(iii) The Company has not invested its assets more than 90% in the
Securities of its Group/Holding/Subsidiary Companies as Long Term
Investments.
(iv) The Company holds Securities of M/s KLG Stock Brokers Private
Limited, a Subsidiary Company as Investments.
For NBS & Co.
Chartered Accountants
Firm Reg.No.110100W
Devdas Bhat Partner
Membership No. 48094
Place : Mumbai
Date : May 30, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of KLG CAPITAL
SERVICES LIMITED which comprise the Balance Sheet as at March 31, 2013,
and 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 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. 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. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 Profit and Loss Account, of the profit/ loss 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") 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 :
- 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;
- 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;
- 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;
- 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 Companies Act, 1956;
- On the basis of written representations received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
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.
- Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in paragraph 1 of the Auditor''s Report to the
Members of KLG CAPITAL SERVICES LIMITED for the year ended March 31,
2013.
As required by the Companies (Auditor Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The Company has maintained proper records showing full
particulars of the fixed assets.
(b) As informed to us, the Management at reasonable intervals has
physically verified the fixed assets. We have been informed that the
discrepancies noticed on physical verification were not material.
(c) During the year the Company has not disposed of a substantial part
of its fixed assets.
(ii) (a) The Company does not own any inventory during the above
mentioned financial year.
(b) In view of our comments in Para (ii) (a) above, clauses 4 (ii) (b)
and (c) of the said order are not applicable to the Company.
(iii) (a) According to the information and explanations given to us the
Company has not granted any loans secured or unsecured to parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of our comments in Para (iii) (a) above, clauses 4 (iii)
(b) (c) and (d) of the said order are not applicable to the Company.
(e) The Company has an outstanding unsecured loan of Rs. 13,04,027/- as
on 31/03/2013 (Max. outstanding during the year : Rs. 4,01,87,007 and
P.Y. o/s : Rs. 4,45,87,007 /-) from M/s. Awaita Properties Private
Limited, party covered in the register maintained under section 301 of
the Companies Act, 1956.
(f) In our opinion and according to the information and explanation
given to us the terms and conditions of loan taken are not prima facie
prejudicial to the interest of the company.
(g) According to the information and explanation given to us the
repayment of the loan is regular.
(iv) According to information and explanations given to us there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business. During the course of our audit
no major weakness has been observed in the internal control system.
(v) (a) The transactions made in pursuance of contract or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 has been recorded in the register.
(b) According to the information and explanations given to us
transactions with parties with whom transactions exceeding the value of
Rupees Five Lacs have been entered into during the financial year are
at prices, which are reasonable, having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion the Company has Internal Audit System commensurate
with its size and its nature of business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) According to the records of the Company, the undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise
Duty, Cess have regularly deposited with the appropriate authorities.
There are no undisputed amount payable in respect of such statutory
dues which have remained outstanding as at March 31, 2013 except for
Service Tax dues amounting to Rs. 1,45,07,430/- (excl. interest &
penalty) and Income Tax of Rs. 2,40,69,937/- which have remained
outstanding for a period more than six months from the date they became
payable.
(b) There are no amount in respect of any disputed income tax, sales
tax, wealth tax, service tax, custom duty, excise duty and cess.
(x) The Company has no accumulated losses and has not incurred cash
losses in current financial year and in the immediate preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of its dues to
banks and financial institutions.
(xii) In our opinion and according to the information and explanations
given to us the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
(xiii) (a) The provisions of any Special Statute applicable to Chit
Fund, Nidhi Fund or Mutual Benefit Fund/Societies are not applicable to
the Company.
(b) In view of our comments in Para (xiii) (a) above, clauses 4 (xiii)
(b) (c) and (d) of the said order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for loan taken by
others from banks and financial institutions.
(xvi) The Company has not taken any term loan during the year.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination the Balance Sheet of the
Company, we report that no fund raised on short term basis have been
used for long term investment.
(xviii) During the year 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.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year that causes the financial statement to be materially misstated.
(xxii) In case of NBFC,
(a) The Company has received the Registration Certificate from RBI vide
Registration no. B-13.02024 dated 06/08/2012 (Previous Reg. No. :
B-14.00140 dated 16/10/2002).
(b) The Company has not accepted any Public deposits.
(c) (i) The Board of Directors have already passed the Board Resolution
dated 02/02/1998 regarding non acceptance of public deposits and
submitted with the RBI on 23/02/1998.
(ii) The Company has complied with the prudential norms related to
Income recognition, Accounting Standards, Asset Classification and
Provisioning for Bad and Doubtful Debts as applicable.
(iii) The Company has not invested its assets more than 90% in the
Securities of its Group/Holding/Subsidiary Companies as Long Term
Investments.
(iv) The Company holds Securities of M/s. KLG Stock Brokers Private
Limited, a Subsidiary Company as Investments.
For NBS & Co.
Chartered Accountants
Firm Reg. No. 110100W
Sd/-
Devdas Bhat
Partner
Membership No. 48094
Place : Mumbai
Date : May 29, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of KLG CAPITAL SERVICES
LIMITED as at March 31, 2012 and the Statement of Profit and Loss and
Cash Flow Statement 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures 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 and
amendments thereto issued by the Central Government of India in terms
of Sec 227(4A) of the Companies Act, 1956, and in terms of Notification
No. DFC 117/DG(SPT) 98 dated 02/01/1998 relating to direction of
NBFCs audit as per RBI Act, 1934 and on the basis of such checks as
we considered appropriate under the circumstances and on the basis of
information and explanations given to us in the course of audit, we
enclose in the annexure, a statement on the matters specified in the
paragraphs 4 and 5 of the said Order, to the extent applicable to the
Company.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all information and explanations which, to the best
of our knowledge and belief, were necessary for the purpose of the
audit;
b) 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
these 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 Financial Statements dealt with by this report,
read with Notes to Accounts, comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956, to the extent applicable.
e) On the basis of the written representations received from Directors
of the Company as at March 31, 2012 and taken on record by the Board of
Directors, we report that no Director is disqualified as on March 31,
2012 from being appointed as a Director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956; and
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said Financial statements together
with the Notes thereon and attached thereto give in the prescribed
manner, the information required by the Companies Act, 1956, 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 on March 31, 2012;
ii) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date, and
iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Annexure referred to in paragraph 3 of the Auditors Report to the
Members of KLG CAPITAL SERVICES LIMITED for the year ended March 31,
2012.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The Company has maintained proper records showing full
particulars of the fixed assets.
(b) As informed to us, the Management at reasonable intervals has
physically verified the fixed assets We have been informed that the
discrepancies noticed on physical verification were not material.
(c) During the year, the Company has not disposed off a substantial
part of its fixed assets.
(ii) (a) The Company does not own any inventory during the above
mentioned financial year.
(b) In view of our comments in Para (ii) (a) above, clauses 4 (ii) (b)
and (c) of the said order are not applicable to the Company.
(iii) (a) According to the information and explanations given to us the
Company has not granted any loans secured or
unsecured to parties covered in the register maintained under section
301 of the Companies Act, 1956.
(b) In view of our comments in Para (iii) (a) above, clauses 4 (iii)
(b) (c) and (d) of the said order are not applicable to the Company.
(e) During the year Company has taken unsecured loan of Rs. 4,45,87,007/-
(P.Y. Rs. 23,31,82,425/-) from M/s. Awaita Properties Private Limited,
party covered in the register maintained under section 301 of the
Companies Act, 1956.
(f) In our opinion and according to the information and explanation
given to us, the terms and conditions of loan taken are not prima facie
prejudicial to the interest of the company.
(g) According to the information and explanation given to us the
repayment of the loan is regular.
(iv) According to information and explanations given to us there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business. During the course of our audit
no major weakness has been observed in the internal control system.
(v) (a) The transactions made in pursuance of contract or arrangements
that need to be entered into the register maintained
under section 301 of the Companies Act, 1956, has been recorded in the
register.
(b) According to the information and explanations given to us
transactions with parties with whom transactions exceeding the value of
Rupees Five Lacs have been entered into during the financial year are
at prices, which are reasonable, having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion the Company has Internal Audit System commensurate
with its size and its nature of business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956, for
the Company.
(ix) (a) According to the records of the Company, the undisputed
statutory dues including Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty and Excise Duty, Cess have regularly deposited with the
appropriate authorities There are no undisputed amount payable in
respect of such statutory dues which have remained outstanding as at
March 31, 2012, except Service Tax dues amounting to Rs. 1,44,200/- (excl
interest & penalty) and Income Tax of Rs. 1,48,27,915/- for a period more
then six months from the date they became payable.
(b) There are no amount in respect of any disputed Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess.
(x) The Company has no accumulated losses and has not incurred cash
losses in current financial year and in the immediate preceeding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of its dues to
banks and financial institutions.
(xii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
(xiii) (a) The provisions of any Special Statute applicable to Chit
Fund, Nidhi Fund or Mutual Benefit Fund/Societies are
not applicable to the Company.
(b) In view of our comments in Para (xiii) (a) above, clauses 4 (xiii)
(b) (c) and (d) of the said order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guar- antee for loan taken
by others from banks and financial institutions.
(xvi) The Company has not taken any term loan during the year.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report that no fund raised on short term basis have been
used for long term investment.
(xviii) During the year 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.
(ix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year that causes the financial statement to be materially misstated.
(xxii) In case of NBFC,
(a) The Company has received the Registration Certificate from RBI vide
Registration No. B-14.00140 dated 16/10/2002.
(b) The Company has not accepted any Public deposits.
(c) (i) The Board of Directors have already passed the Board Resolution
dated 02/02/1998 regarding non acceptance
of public deposits and submitted with the RBI on 23/02/1998.
(ii) The Company has complied with the prudential norms related to
Income recognition, Accounting Standards, Asset Classification and
Provisioning for Bad and Doubtful Debts as applicable.
(iii) The Company has not invested its assets more than 90% in the
Securities of its Group/Holding/Subsidiary Companies as Long Term
Investments.
(iv) The Company holds Securities of M/s. KLG Stock Brokers Private
Limited, a Subsidiary Company as Investments.
For NBS & Co
Chartered Accountants
Firm Registration Number : 110100W
Devdas Bhat Partner
Membership No 48094
Place: Mumbai
Date: May 30, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of KLG CAPITAL SERVICES
LIMITED as at March 31, 2010 and the Profit & Loss Account and Cash
Flow statement 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 the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures 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 and
amendments thereto issued by the Central Government of India in terms
of Sec 227(4A) of the Companies Act, 1956, and in terms of Notification
no. DFC 117/DG( SPT) 98 date 02/01/1998 relating to direction of NBFCs
audit as per RBI Act, 1934 and on the basis of such checks as we
considered appropriate under the circumstances and on the basis of
information and explanations given to us in the course of audit, we
enclose in the annexure, a statement on the matters specified in the
paragraphs 4 and 5 of the said order, to the extent applicable to the
Company.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all information and explanations which, to the best
of our knowledge and belief, were necessary for the purpose of the
audit;
b) 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
these books;
c) The Balance Sheet, Profit and Loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Financial statements dealt with by this report,
read with Notes to Accounts, comply with the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 to the extent applicable.
e) On the basis of the Written representations received from directors
of the Company as at March 31, 2010 and taken on record by the Board of
Directors, we report that no director is disqualified as on March 31,
2010 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956; and
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said Financial statements together
with the Notes thereon and attached thereto give in the prescribed
manner the information required by the Companies Act, 1956, 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 on March 31, 2010;
ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
iii) In the case of Cash Flow statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the auditors report to the
members of KLG CAPITAL SERVICES LIMITED for the year ended 31st March,
2010.
As required by the Companies (Auditor Report) Order, 2003 and
amendments thereto and according to the information and explanations
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
report that:
(i) (a) The Company did not hold any fixed assets during the above
mentioned financial year.
(b) In view of our comments in Para (i) (a) above, clauses 4 (i) (b)
and (c) of the said order are not applicable to the Company.
(ii) (a) The Company does not own any inventory during the above
mentioned Financial year.
(b) In view of our comments in Para (ii) (a) above, clauses 4 (ii) (b)
and (c) of the said order are not applicable to the Company.
(iii) (a) According to the information and explanations given to us the
Company has not granted any loans secured or unsecured to parties
covered in the register maintained under section 301 of the Companies
Act, 1956.
(b) In view of our comments in Para (iii) (a) above, clauses 4 (iii)
(b) (c) and (d) of the said order are not applicable to the Company.
(c) During the year Company has not taken any loans secured or
unsecured from parties covered in the register maintained under section
301 of the Companies Act, 1956.
(d) In view of our comments in para (iii) (c) above, clause (iii) (f)
and (g) of the said order is not applicable to the Company
(iv) According to information and explanations given to us there are
adequate internal control systems commensurate with the size of the
Company and the nature of its business. During the course of our audit
no major weakness has been observed in the internal control system.
(v) (a) The transactions made in pursuance of contract or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 has been recorded in the register.
(b) According to the information and explanations given to us
transactions with parties with whom transactions exceeding the value of
Rupees Five Lacs have been entered into during the Financial year are
at prices, which are reasonable, having regard to the prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of the sections 58A, 58AA or any other relevant provision
of the Act and the rules framed there under any directives report
issued by the Reserve Bank of India. No order in relation thereto has
been passed by the Company Law Board or National Company Law Tribunal
or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion the Company has Internal Audit System commensurate
with its size and its nature of business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209 (1) (d) of the Companies Act, 1956 for
the Company.
(ix) (a) According to the records of the Company, the undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise
Duty, Cess have regularly deposited with the appropriate authorities.
There are- no undisputed amount payable in respect of such statutory
dues which have remained outstanding as at March 31, 2010 for a period
more then six months from the date they became payable.
(b) There are no amount in respect of any disputed Income tax, Sales
tax, Wealth tax, Service tax, Custom duty, Excise duty and cess.
(x) The Company has no accumulated losses and has not incurred cash
losses in current financial year and in the immediate preceeding
financial year.
(xi) In our opinion and according to the information and explanations
given to us the Company has not defaulted in repayment of its dues to
banks and financial institutions.
(xii) In our opinion and according to the information and explanations
given to us the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or other
securities.
(xiii) (a) The provisions of any Special Statute applicable to Chit
Fund, Nidhi Fund or Mutual Benefit Fund/Societies are not applicable to
the Company.
(b) In view of our comments in Para (xiii) (a) above, clauses 4 (xiii)
(b) (c) and (d) of the said order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us the Company has not given any guarantee for loan taken by
others from banks and financial institutions.
(xvi) The Company has not taken any term loan during the year.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination the Balance Sheet of the
Company, we report that no fund raised on short term basis have been
used for long term investment.
(xviii) During the year 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.
(ix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year that causes the financial statement to be materially misstated.
(xxii) In case of NBFC,
(a) The Company has received the Registration Certificate from RBI vide
Registration no. B-14.00140 dated 16/10/2002.
(b) The Company has not accepted any Public deposits
(c) (i) The Board of Directors have already passed the Board Resolution
dated 02/02/1998 regarding non acceptance of public deposits and
submitted with the RBI on 23/02/1998.
(ii) The Company has complied with the prudential norms related to
Income recognition, Accounting Standards, Asset Classification and
Provisioning for Bad and Doubtful Debts as applicable.
(iii) The Company has not invested its assets more than 90% in the
Securities of its Group/Holding/ Subsidiary Companies as Long Term
Investments.
(iv) The Company does not hold any Securities of its Group / Holding/
Subsidiary Companies as Investments.
For NBS & Co
Chartered Accountants
Devdas Bhat
Partner
Membership No. 48094
Place :Mumbai
Date: May 20, 2010