kmf ltd Auditors report
KMF LIMITED
ANNUAL REPORT 2011-2012
AUDITORS REPORT
To
The Shareholders
M/s KMF Limited
New Delhi
i. We have audited the attached Balance Sheet of KMF Limited as at 31st
March 2012 and the Profit & Loss account of the Company for the year ended
on that date. 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.
ii. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amount and disclosures
in the financial statement 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.
iii. As required by the Companies (Auditors report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4 A) of Section
227 of the Companies Act, 1956, and on the basis of such checks of the
books and records as we considered necessary and appropriate and according
to the information and explanations given to us during the course of audit,
we enclose in the Annexure a statement on the matters specified in
paragraph 4 and 5 of the said order to the extent applicable.
iv. Further to our comments in the Annexure referred to in paragraph above,
we report that:
i. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
ii. In our opinion, proper books of Accounts as required by the Law have
been kept by the company so far as appears from our examination of those
books.
iii. The Balance Sheet and Profit & Loss Account referred to in this report
are in agreement with the books of account.
iv. In our opinion the Balance Sheet, Profit & Loss Account dealt with by
this return complies with the Accounting Standards referred in sub section
(3 C) of Section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the Directors, as
on 31st March 2012 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March 2012 from being
appointed as a director in terms of clause (g) of the SubSection (1) of
Section 274 of the Companies Act, 1956.
vi. 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, except our comment in Para 2 of the Annexure i.e, Notes on
accounts, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view:, in conformity with the
Accounting Principles generally accepted in India: -
[a] In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and
[b] In the case of Profit & Loss Account, of the Profit for the year ended
on that date
vii. In terms of the Non Banking Financial Companies Auditors Report
(Reserve Bank) Directions, 2008 issued vide Notification
No.DNBS.201/DG(VL)-2008 dated 18-09-2008, we are to state as under
i. The Company has not carried the business of Non-Banking Financial
Institution and the certificate of Registration from Reserve Bank of India
is under suspension.
For G S S V & Associates
Chartered Accountants
Sd/-
Gurjit Anand
Date : 25th June 2012 M No : 93052
Place: New Delhi Partner
Annexure to the Auditors Report of even date on the accounts of KMF
Limited for the year ended on 31st March 2012
{Refer to Paragraph [3 of our report of even date}
i. a. Company had maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. The Management had not verified the Fixed Assets during the year. In our
opinion, the discrepancy, if any, noticed, on the comparison of physical
Verification with Book records, needs to be treated adequately as and when
physical verification is performed. The confirmation of Lease Assets
disposed off during the year also couldnt be performed, in the absence of
sufficient documentary records.
c. The Company had not disposed off substantial part of the Fixed assets
during the Year.
ii. a. The Company had taken/given loan from its Directors & shareholders
covered in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs.3,65,000/-.
b. The Loans taken by the Company from the Parties covered under register
maintained under section 301 of the Companies Act, 1956 are interest free
and are not prima facie prejudicial to the interest of the Company.
c. The repayment of the Principal amount of loan are on call. Therefore,
the Provision of Para 4(iii)(c) are not applicable to the Company.
d. There is no overdue amount of Loans taken from or granted to the
Companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1956.
iii. In our opinion and according to information and explanation given to
us, there are adequate internal control procedures commensurate with the
size of the company and the nature of its business with regard to purchase
of inventory, fixed assets and with regard to sale of goods.
iv. a. According to information and explanations given to us, we are of the
opinion that the transactions that need to made entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b. In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies Act,
1956 and exceeding the value of Rs.5 Lakhs in respect of any party during
the year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
v. In our opinion and according to the information and explanation given to
us, the company had complied with the provisions of section 58A and 58AA of
the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to prevailing market prices at the relevant time.
vi. In our opinion, the company doesnt have any internal audit system in
operation commensurate with the size and nature of its business.
vii. We have broadly reviewed the books of accounts relating to materials,
labour and other items of cost maintained by the company pursuant to the
rules made by the Central government for the maintenance of cost records
under section 209(a)(d) of the Companies Act, 1956 and we are of the
opinion that prima facie the prescribed accounts and records have been made
and maintained.
viii. a. The Company is regular in depositing with appropriate authorities
undisputed statutory dues including income tax, TDS, FBI, sales tax, custom
duty, excise duty, cess and any other statutory dues applicable to it,
except minor delay.
b. According to the information and explanation given to us, Income Tax
demand of Rs.15,89,008/- is pending towards the Income Tax Department,
against which an appeal is pending against the Company in court of law.
c. According to the information and explanation given to us , there are no
dues of sales tax, custom duty, wealth tax, excise duty and cess which have
not deposited on account of any dispute.
ix. The Accumulated Losses of the Company as at the end of year are more
than the 50% of net worth of the Company.
x. Based on our audit procedures and on the information and explanations
given to us by the management, we are of the opinion that the Company has
defaulted in repayment of dues to financial Institutions, bank or debenture
holders. It has been explained to us that the company is under the phase of
negotiation with all the Lenders for settlement of their dues.
xi. In our opinion and according to the information and explanations given
to us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debenture and other securities.
xii. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provisions of this clause of Companies
(Auditors report) order, 2003 are not applicable to the Company.
xiii. Based on our audit procedures and on the information and explanations
given to us by the management, the Company is not dealing in or trading in
shares, securities, debenture and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors report) order, 2003
are not applicable to the Company.
xiv. Based on our audit procedures and on the information and explanations
given to us by the Management, the Company has not given guarantee for
loans taken by others from banks or financial Institutions.
xv. In our opinion, no fresh term loans had been taken by the company
during the year.
xvi. Based on our audit procedures and on the information and explanations
given to us by the Management, we report that no had been raised by the
company for short term purposes.
xvii. In our opinion and according to information and explanation given to
us, No allotment/Transfer of shares has been made during the year
xviii. No Public issue has been made by the Company during the financial
year ended 31st March 2012
xix. We report that no fraud on or by the company has been noticed or
reported during the course of our audit.
For G S S V & Associates
Chartered Accountants
Sd/-
Gurjit Anand
Date : 25th June 2012 M No : 93052
Place: New Delhi Partner