TO THE MEMBERS OF
KESAR PETROPRODUCTS LIMITED
Opinion
We have audited the accompanying financial statements of KESAR PETROPRODUCTS LIMITED
(the Company), which comprise the balance sheet as at 31st March 2023, the statement
of profit and loss (including other comprehensive income), the statement of cash flows and
the statement of changes in equity for the year then ended and a summary of the
significant accounting policies and other explanatory information.
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 including the Ind As, of the state of affairs
(financial position) of the company as at 31st March 2023, and its profit (financial
performance including other comprehensive income), its cash flow and the changes in equity
for the year ended on that date.
Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143 (10) of the Companies Act, 2013 ("the Act"). Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the Financial Statements under the provisions of the Act and Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were most
significance in our audit of the Financial Statements of the current period. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Director Report and Corporate
Governance Report but does not include the Financial Statements and our auditors report
thereon
Our opinion on the Financial Statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the Financial Statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is 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 including other comprehensive income, cash flows and changes in
equity of the Company in accordance with the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other accounting principles generally accepted in
India.
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.
In preparing the Financial Statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditors Responsibilities for the Audit of the Financial Statements
Our objective are to obtain reasonable assurance about whether the Financial Statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditors report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these Financial Statements.
A further description of our responsibilities for the audit of the Financial Statements
is included in Appendix -1 of this auditors report.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss including other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the books of account.;
(d) in our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act.
(e) on the basis of the written representations received from the directors as on 31st
March 2022 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2022 from being appointed as a director in terms of Section
164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting; and
(g) with respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in
our opinion and to the best of our information and according to the explanations given to
us :
i. The company has no pending litigation which would impact its financial position
except those disclosed in financial statements;
ii. The company did not have any long-term contract including derivative contract for
which there were any material foreseeable losses;
iii. There were no amounts which were required by the company to be transferred to the
Investor Education and Protection Fund, and;
iv. a) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
2. As required by Section 143(3) of the Act, based on our audit we report that:
As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of section 143(11) of the Act, we give
in the Annexure B, a statement on the matters specified in the paragraph 3 and 4 of the
Order.
|
For A Sachdev & Co. |
|
Chartered Accountants |
|
(Firms Registration No. 001307C) |
|
CA Brijendra Kumar Agarwal |
| Place: Mumbai |
(Partner) |
| Date : 29th May 2023 |
(M.No. 090771) |
|
UDIN:-23090771BGYGGD1958 |
Appendix-1
(Referred to in Auditors Responsibilities for the Audit of the Financial Statements
paragraph of the independent Auditors Report)
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Financial Statements,
whether due to fraud or error, design and perform audit procedure responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143 (3)(i) of
the Act, we are also responsible for expressing our opinion on whether the Company has
adequate Internal Financial Controls with reference to Financial Statements in place and
the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Financial Statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the Financial Statements,
including the disclosures, and whether the Financial Statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Financial Statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
For A Sachdev & Co
Chartered Accountants
FRN:001307C
CA Brijendra Kumar AgarwaL
Partner
M. No. 090771
Place: Mumbai
Date: 29th May 2023
UDIN:-23090771BGYGGD1958
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of KESAR PETROPRODUCTS LIMITED of
even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of KESAR
PETROPRODUCTS LIMITED ("the Company") as of March 31, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for my /our audit opinion on the Companys internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For A Sachdev & Co. |
|
Chartered Accountants |
|
(Firms Registration No. 001307C) |
|
CA Brijendra Kumar Agarwal |
| Place: Mumbai |
(Partner) |
| Date : 29th May 2023 |
(M.No. 090771) |
Annexure B to the Independent Auditors Report of KESAR PETROPRODUCTS LIMITED for the
Year ended as on 31st March 2023
Annexure referred to in paragraph 2 under the heading "Report on Other Legal and
Regulatory Requirements" of our report on even date:-
i. a ) i. The company is maintaining proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment;
ii. The Company has maintained proper records, showing full particulars of its
intangible Assets.
b) The Property, Plant and Equipment are been physically verified by the management at
regular intervals based on the programme of verification which in our opinion is
reasonable. All the major Property, Plant and Equipment have been verified by the
management in the current year and discrepancies noticed on such physical verification
were not material and the same have been properly dealt with in the books of accounts.
c) The title deeds of immoveable properties are held in the name of the company.
d) The Company has not revalued its Property, Plant and Equipment (including Right-of-
use assets) or intangible assets during the year. Accordingly, the reporting under Clause
3(i)(d) of the Order is not applicable to the Company.
e) The title deeds of immovable properties are held in the name of the company. Based
on the information and explanations furnished to us, no proceedings have been initiated on
or are pending against the Company for holding benami property under the Prohibition of
Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder, and
therefore the question of our commenting on whether the Company has appropriately
disclosed the details in its standalone financial statements does not arise.
ii. a) The inventories have been physically verified by the management during the year
at reasonable interval. According to information & explanations given to us, the
discrepancies noticed on verification between the physical stock and books record, have
been properly dealt with in the Books of accounts.
b) The Company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks on the basis of security of current assets; and the
Company has filed quarterly returns or statements with such banks. No material differences
have been observed therein. The Company has not taken borrowings from financial
institution.
iii. According to information & explanations given to us, the Company has not
granted any loans, secured or unsecured to companies, firms, limited liabilities
partnership or other parties covered in the register maintained under section 189 of the
Companies Act, 2013. Hence, reporting under clause (a) to (f) of Para 3(iii) are not
applicable.
iv. The Company has not entered into any transaction in respect of loans, investments,
guarantee and securities, which attracts compliance to the provisions of the sections 185
and 186 of the Companies Act, 2013. Therefore the paragraph 3(iv) of the Order is not
applicable to the company.
v. In our opinion and according to information and explanations given to us, the
Company has not accepted deposits in terms of the provisions of section 73 to 76 of the
Companies Act, 2013 and rules framed there under. Therefore, the paragraph 3(v) of the
Order is not applicable to the company.
vi. We have reviewed the books of account maintained by the Company pursuant to the
rules prescribed by the Central Government for maintenance of cost records u/s 148(1) of
the Companies Act 2013 in relation to products manufactured and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records.
vii. a) According to the information and explanations given to us and on the basis of
our examination of the books of accounts, the company has been generally regular in
depositing undisputed statutory dues including provident fund, employee state insurance,
income tax, service tax, value added tax, cess and other statutory dues during the year
with the appropriate authorities. As on 31st March 2023, there are no undisputed statutory
dues payables for a period exceeding more than six month from the date they become
payable.
b) According to the information and explanations given to us, there were no statutory
dues pending in respect of income tax, sales tax, VAT, GST, custom duty and cess etc. on
account of any dispute.
viii. According to the information and explanations given to us and the records of the
Company examined by us, there are no transactions in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.
ix. a) Based on our audit procedures and on the basis of information and explanations
given
to us and on the basis of our examination of the records, we are of the opinion that
the Company has not defaulted in the repayment of loans or other borrowings or in the
repayment of interest thereon to the lenders and hence reporting under clause 3(ix) of the
Order is not applicable to the Company.
b) The Company has not been declared as willful defaulter by any bank or financial
institution or other lender.
c) In our opinion, and according to the information and explanations given to us, the
term loans have been applied, on an overall basis, for the purposes for which they were
obtained.
d) In our opinion, and according to the information and explanations given to us, funds
raised on short term basis have not been utilised for long term purposes.
e). According to the information and explanations given to us and on an overall
examination of the standalone financial statements of the Company, we report that the
Company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures.
f). According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies
xi. a). 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, and
according to the information and explanations given to us, we have neither come across any
instance of fraud by the Company or any fraud on the Company by its officers or employees,
noticed or reported during the year, nor have we been informed of any such case by the
management.
b). 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, and
according to the information and explanations given to us, a report under Section 143(12)
of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 was not required to be filed with the Central Government. Accordingly, the
reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.
c). 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, and
according to the information and explanations given to us, the Company has not received
any whistle-blower complaints during the year
xii. The company is not a Nidhi Company, therefore para 3(xii) of the Order is not
applicable.
xiii. In our opinion and according to the information provided to use, the transaction
entered with the related partied are in compliance with section 177 and 188 of the Act and
are disclosed in the financial statements as required by the applicable accounting
standards.
xiv. a). In our opinion and according to the information and explanation given to us,
the Company has an internal audit system commensurate with the size and nature of its
business.
b). The reports of the Internal Auditor for the period under audit have been considered
by us.
xv. According to the information provided to us, the company has not entered into any
non-cash transaction with directors or the persons connected with him covered under
section 192 of the Companies Act 2013. Therefore, paragraph 3(xv) of the Order is not
applicable to the company.
xvi. a) According to the information provided to us, the company is not required to be
registered under section 45IA of the Reserve Bank of India Act, 1934. Therefore, paragraph
3(xvi) (a) of the Order is not applicable to the company.
b) The Company has not conducted non-banking financial / housing finance activities
during the year. Accordingly, the reporting under Clause 3 (xvi) (b) of the Order is not
applicable to the Company.
c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, the reporting under Clause 3 (xvi) (c) of
the Order is not applicable to the Company.
d). Based on the information and explanations provided by the management of the
Company, the Group has no CICs as part of the Group.
xvii. The Company has not incurred cash losses during the financial year and in the
immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year and
accordingly the reporting under Clause 3(xviii) of the Order is not applicable to the
Company.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx. a) There are no unspent amounts towards Corporate Social Responsibility (CSR) on
other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to
the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of
the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable
for the year.
(b) The Company does not have any ongoing projects as at the end of the previous
financial year.
xxi. The Company is not required to prepare consolidated Ind AS financial statement.
Therefore, paragraph 3(xxi) of the Order is not applicable to the Company.
|
For A Sachdev & Co |
|
Chartered Accountants |
|
(Firms Registration No. 001307C) |
|
CA Brijendra Kumar Agarwal |
| Place: Mumbai |
(Partner) |
| Date : 29th May 2023 |
(M.No. 090771) |
+91-9892691696
