To the Members of KLG CAPITAL SERVICES LIMITED Report on the Standalone Ind AS
Financial Statements Opinion
We have audited the accompanying Standalone Ind AS Financial Statements of KLG Capital
Services Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred toas"the Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Standalone Ind AS Financial Statements give the information
required by the Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended, ("Ind AS") and other accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31,2023, the profit/loss and
total comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with
the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the ‘Auditors
responsibilities for the audit of the Standalone Ind AS 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 Standalone Financial Statements under
the provisions of the Act and the Rules there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Ind AS Financial Statements of the current
year. we have determined that there are no Key Matters to Communicate in our report.
Information Other than the Standalone Ind AS Financial Statements and Auditors Report
Thereon
The companys Board of Directors is responsible for the other information. The other
information obtained at the date of this auditors report is other information included in
Board of Directors Report including Annexure to such report but does not include the
standalone financial statements and our Auditors Report thereon.
Our opinion on the Standalone 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 Standalone Ind AS Financial Statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the Standalone Ind AS Financial
Statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, 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.
Responsibilities of Management and Those Charged with Governance for the Standalone Ind
AS 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 Standalone Ind AS Financial Statements that give a true and fair view of the
financial position, financial performance, including other comprehensive income, changes
in equity and cash flows of the Company in accordance with accounting principles generally
accepted in India, including Indian Accounting Standards (Ind AS) prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate implementation and maintenance of 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 Standalone Ind AS Financial Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS 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. The Board of Directors are also responsible for overseeing the
companys financial reporting process.
Auditors Responsibilities for the Audit of Standalone Ind AS Financial Statement
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS
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 Standalone Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Ind AS
Financial Statements, whether due to fraud or error, design and perform audit procedures
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 Companies Act, 2013, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls system 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 Standalone Ind AS 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 Standalone Ind
AS Financial Statements, including the disclosures, and whether the Standalone Ind AS
Financial Statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Ind AS Financial
Statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the Standalone Ind AS Financial
Statements.
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 to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
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 Standalone Ind AS 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the "Annexure -A" a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit 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 and the Cash Flow Statement
dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the
Indian Accounting Standards specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2023 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 with reference to these Standalone Ind AS Financial Statements
and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B".
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended; we would like
to state that the remuneration which is paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
h) 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, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position in its Standalone Ind AS Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
|
AS PER OUR REPORT OF EVEN DATE |
|
For BHARAT SHAH & ASSOCIATES, |
|
Chartered Accountants |
|
(Firm Reg. No:. 101249W) |
|
(BHARAT A. SHAH) |
|
PROPRIETOR |
| PLACE: Mumbai |
Membership No.32281 |
| DATE: 24.05.2023 |
UDIN: 23032281BGXMQU4822 |
Annexure A to the Independent Auditors Report
The Annexure referred to in our report to the members of KLG Capital Services Limited
("the Company") for the year
Ended on 31st March, 2023. We report that:
i. (A) The company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
(B) There are no intangible assets owned by the company hence this clause is not
applicable
(C) All the fixed assets has been physically verified by the management during the year
which in our opinion is reasonable having regard to the size of the company and nature of
its fixed assets and no material discrepancies were noticed on such physical verification.
(D) The Company does not hold any immovable property; hence clause (c) is not
applicable.
(E) The company has not revalued any of his property, Plant & Equipment during the
year
(F) No Proceedings have been initiated during the year or are pending against the
company as at March 31st 2023 for holding any benami property under the Benami
Transactions (Prohibition) act 1988 (as amended in 2016) and the rules made thereunder.
ii. The Company doesnt have any inventory, hence this clause is Not Applicable.
iii. During the year The company has not made any fresh investment or provided any
guarantee or security or granted any Loans and advances in the nature of Loans secured or
unsecured to Companies, firms, Limited Liability Partnership or any other entity
(a) Regarding Outstanding Loans or advances in the nature of Loans this clause is not
applicable as Principle business of the company is of giving Loans
(b) The Investments made, guarantee provided, security given and Terms & Conditions
of Giving all Loans and advances in nature of Loan and guarantee provided in our opinion
are prime facie not pre judicial to the interest of the company
(c) (c),(d) & (e) Since the Loans and Advances in the nature of Loans are repayable
on demand and there is not stipulation regarding terms or period of repayment the clause
(c), (d), &(e) are not applicable
(f) There are total loans of Rs. 10,22,00,000/- which are repayable on demand or
without specifying any terms or period of repayment , aggregate amount of Loans Rs.
10,22,00,000/- and which is 100% of Total Loans Granted and there are no amount of loan
granted to promoters, related parties as defined in clause (76) of Section 2 of Companies
Act, 2013.
iv. In our opinion and according to the information and explanations given to us, there
are no loans, investments, guarantees, and securities granted in respect of which
provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not
commented upon.
v. According to information and explanation given to us, the company has not accepted
any public deposits, 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 Companies Act and
the rules framed there under are not applicable for the year under audit.
vi. We have been informed by the management that the Central Government has not
prescribed maintenance of cost records for the Company under sub-section (1) of section
148 of the Companies Act, 2013. Therefore the provision of clause (vi) of para 3 is not
applicable.
vii. (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 generally regular in depositing
the undisputed statutory dues including provident fund, income-tax, sales tax, wealth tax,
service tax, customs duty, excise duty, cess, GST and other material statutory dues
applicable with the appropriate authorities. According to the information and explanation
given to us, no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2023, for the period of more than six months from the date
becoming payable except Income tax Payable of Rs. 3,31,81,142/-.
(b) According to the information and explanations given to us there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excess Duty, VAT and cess on
account of any dispute which have not been deposited. Except the disputed Income Tax
demand of Rs.13,38,88,820 as per following details.
| Name of the Statute |
Nature of Dues |
Forum where dispute is Pending |
Period to which related |
Amount of Rs. |
| Income Tax Act, 1961 |
Income Tax |
CIT(A) National Faceless Appeal Centre (NAFC) Delhi. |
AY. 2012-13 |
13,38,88,820 |
viii. There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income in tax Assessments under the Income Tax Act, 1961
during the year
ix. (a) The Company has not defaulted in repayment of Loans or other borrowings or in
the payment of interest thereon to any lender and hence reporting under clause (ix)(a) is
not applicable.
(b) The Company has not been declared willful defaulter by any Bank or Financial
Institution or other lender
(c) The Company has not taken any Term Loan during the year & there are no
unutilized term loan at the beginning of the year and hence reporting under clause ix.(c)
is Not applicable
(d) On overall examination of the financial statement of the company funds raised on
short term basis have prime facie not been used during the year for long term purposes of
the company
(e) On Overall examination of the financial statements of the company, the company has
not taken any funds from any entity or person on account of or to meet the obligations of
his subsidiary company. The Company did not have any Associates or Joint venture during
the year.
(f) Company has not raised any Loan during the year on the pledge of security of its
subsidiary company hence reporting under clause ix. (f) of the Order is not applicable
x. (a) In our opinion, and according to the information and explanations given to us,
the Company has not raised any money
by way of initial public offer or further public offer (including Debt Instruments)
during the year. Therefor provision of Clause x.(a) of order is not applicable
(b) During the year Company has not made any preferential allotment or Private
placement of shares or convertible debenture (fully/Partly/optionally) and hence reporting
under Clause (b) is not applicable to the company
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 they have neither come across
any instance of material fraud on or by the Company noticed or reported during the year,
nor have been informed of such case by the Management
(b) to the bet of our knowledge no report under sub-section (12) of section 143 of the
companies act 2013 has been filed in Form ADT-4, as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the central Government during the year and up to the
date of this Report
(c) There are no whistle blower Complaints received by the company during the year and
upto the date of the report
xii. The company is not a Nidhi Company. Therefore the Reporting under clause (xii)
(a), (b) and (c) of the order is not applicable.
xiii. In our opinion, and according to the information and explanations given to us,
all transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, 2013 where applicable and the details have been disclosed in the financial
statements etc, as required by the applicable accounting standard.
xiv. (a) In Our Opinion the company has adequate internal audit system commensurate
with the size and nature of its business
(b) Since the Company is a Small Company, the internal Audit work is assigned to
separate officer of the company, its internal Audit report for the audit period is
considered by us.
xv. In our Opinion the company during the year the company has not entered into any
non-cash transactions with any of its directors or directors of its Holding Company ,
Subsidiary company , associate Company or persons connected with such directors and hence
provisions of section 192 of Companies Act is not applicable to Company
xvi. (a) In our opinion, and according to the information and explanations given to us,
the Company is required to be registered under section 45-IA of The Reserve Bank of India
Act, 1934 and it has obtained certificate of registration.
(b) Since the company has valid certificate of registration (COR) from Reserve Bank Of
India as per The Reserve Bank of India Act, 1934 and hence reporting under clause (b) is
not applicable
(c) A Company is not a core Investment Company (CIC) as defined in Regulation of
Reserve Bank of India so it does not required to register as CIC
(d) The Group does not have more than one CIC accordingly reporting under Clause
XVI.(d) is not applicable
xvii. The Company has incurred cash loss of Rs. 16,00,897/- in current financial year
& no cash loss is incurred in the preceding financial year.
xviii. There has been no resignation of the statutory auditor of the company during the
year.
xix. On the basis of Financial ratios, ageing and expected dates of Realization of
Financial Assets & Payment of Financial Liabilities, other information accompanying
the financial statements and our knowledge of board of directors and Managements plans and
based on our examination of evidence supporting the assumption nothing has come to our
attention which cause us to believe that any material uncertainty exist as on the date of
Audit report indicating that company is not capable of meeting its liabilities existing as
on the date of Balance sheet
xx. The Provision of Section 135 of The companies act 2013 is not applicable to the
company during the year and hence reporting under this clause is not applicable
Annexure B to the Independent Auditors Report
The Annexure referred to in our report to the members of KLG CAPITAL SERVICES LIMITED
("the Company") for the year ended on 31st March, 2023.
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 KLG Capital
Services Limited ("the Company") as of March 31,2023 in conjunction with our
audit of the Standalone Ind AS 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 with reference to these Standalone Ind AS Financial
Statements based on our audit. We have 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 and as 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 with reference to these
Standalone Ind AS Financial Statements 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 with reference to these
Standalone Ind AS Financial Statements and their operating effectiveness. Our audit of
internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reportingwith reference to these Standalone
Ind AS Financial Statements, 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 Standalone Ind AS Financial
Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting with reference to these Standalone Ind AS Financial Statements.
Meaning of internal financial controls over financial reporting with reference to these
Standalone Ind AS Financial Statements
A companys internal financial control over financial reporting with reference to these
Standalone Ind AS Financial Statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of
Standalone Financial Statements for external purposes in accordance with Generally
Accepted Accounting Principles. A companys internal financial control over financial
reporting with reference to these Standalone Ind AS Financial Statements 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 standalone financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the Standalone Ind AS Financial Statements.
Inherent limitations of internal financial controls over financial reporting with
reference to these standalone Ind AS Financial Statements
Because of the inherent limitations of internal financial controls over financial
reporting reference to these Standalone Ind AS Financial Statements, 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 reference to
these Standalone Ind AS Financial Statements to future periods are subject to the risk
that the internal financial control over financial reporting reference to these Standalone
Ind AS Financial Statements 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 reference to these Standalone Ind AS
Financial Statements and such internal financial controls over financial reporting
reference to these Standalone Ind AS Financial Statements 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.
|
AS PER OUR REPORT OF EVEN DATE |
|
For BHARAT SHAH & ASSOCIATES, |
|
Chartered Accountants |
|
(Firm Reg. No:. 101249W) |
|
(BHARAT A. SHAH) |
|
PROPRIETOR |
| PLACE: Mumbai |
Membership No.32281 |
| DATE: 24.05.2023 |
UDIN: 23032281BGXMQU4822 |
+91-9892691696
