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केएस ऑयल

बीएसई: 526209  |  NSE: KSOILS  |  ISIN: INE727D01022  |  Edible Oils & Solvent Extraction

खोजें केएस ऑयल कनेक्शन Mar 14
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '15
We have audited the accompanying financial statement of K.S.OILS
 LIMITED (''the company'') which comprise the balance sheet as at 31st
 March 2015 and the Statement of Profit & Loss and the cash fow
 statement for the period 1st April 2014 to 31 March 2015 and a summary
 of significant policies and other explanatory information.
 
 Management''s Responsibility for the financial Statements
 
 The Company''s Board of Directors is responsible for the matters stated
 in Section 134(5) of the Companies Act, 2013 (the Act) with respect
 to the preparation of these standalone financial statements that give a
 true and fair view of the financial position, financial performance and
 cash flows of the Company in accordance with the accounting principles
 generally accepted in India, including the Accounting Standards
 specified under Section 133 of the Act, read with Rule 7 of the
 Companies (Accounts) Rules, 2014. This responsibility also includes
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding of 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.
 
 Auditor''s Responsibility
 
 Our responsibility is to express an opinion on these standalone
 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 except with regard to the matters
 discussed below where we have not been able to perform the audit in
 conformity with the relevant auditing standard on account of
 unavailability of adequate documents/information
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and the disclosures in the financial statements.  The
 procedures selected depend on the auditor''s judgment, including the
 assessment of the risks of material misstatement of the financial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers internal financial control relevant
 to the Company''s preparation of the financial statements that give a
 true and fair view in order to design audit procedures that are
 appropriate in the circumstances. An audit also includes evaluating the
 appropriateness of the accounting policies used and the reasonableness
 of the accounting estimates made by the Company''s Directors, as well as
 evaluating the overall presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion on the standalone
 financial statements.
 
 Basis for qualified opinion
 
 1.  As regards trade receivables, inventory, costs, production margin
 and sales price of goods sold, we state that:
 
 a) The company has made provision for bad and doubtful debts for
 Rs.4736 Lacs (Previous year 87987) on the basis of the management
 evaluation.
 
 In absence of confirmation of balances trade receivable as on
 31.03.2015 , provision to be made if any for adverse variation in the
 carrying amount of these balances are not quantified.
 
 b) Position of inventory is as per management as more details in note
 no.36. As explained in the note, we could not observe inventory count
 as required under SA 501(Revised) ''Audit evidence Specific
 Consideration for selected Items''.
 
 c) Attention is invited to Note 35 on the explanation of the management
 with regard to abnormal variations/fluctuations in costs, production
 margin and sales price. We are unable to comment on these, being a
 technical matter.
 
 2.  In the absence of details of testing for impairment of certain
 assets viz. Production plants which were not operational/fully
 operational during the period, we are unable to state whether
 provision, if any, is required to be made in this regard.
 
 3.  Out of transactions of purchase and sales of goods selected on a
 sample basis; in some cases, full supporting documents were not made
 available for our verification.
 
 4.  Loan and Advances include advances aggregating Rs38424 Lacs given
 to some of the suppliers which include advances Rs.26514 Lacs
 outstanding for more than a year. Relevant documents and confirmations
 of balances are yet to be obtained.
 
 5.  The company has given loans of Rs.1295 Lacs to its step-down
 subsidiary K S OILS SDN BHD. The net worth of the subsidiary is eroded
 significantly for the accounting period ended March 31, 2015 due to
 accumulated losses of Rs. 549 Lacs . No provision has been made for any
 doubtful recovery as it is not ascertainable.
 
 6.  Company has taken an average rate (for goods for trading and
 manufacturing) to determine the value of cost of goods.  Consequently,
 the result of such trading transactions and the closing inventory of
 such goods have not been disclosed separately. This is also not in
 conformity with the requirement of Revised Schedule VI.
 
 7.  The company had been served demand notice under section U/s 13(2)
 of the Securitization and Reconstruction of Financial Assets and
 Enforcement of security Interest Act, 2002 on dated 26th Dec.2013 for
 Wind Energy Business and 4th March 2014 for Edible Oil Business for
 payment of Outstanding principal amount including interest etc. within
 60 days from the date of notice.
 
 As stated in the Note no.33, pending quantification of interest
 payable, penalty, other financial charges, the ultimate liability for
 financial charges and related impact on reported loss is not|
 quantifiable for the period and the Company has not provided interest
 liability for the current financial year.
 
 8.  The financial statements of company have been prepared on a going
 concern assumption, though the company has incurred a net loss of Rs.
 22987 Lacs during the twelve months period ended March 31, 2015 and its
 net worth has eroded totally, CDR of the company has been called off
 and it has been served SARFAESI Notices by bankers & financial
 institutions for payment of loans.  This situation indicates the
 existence of a material uncertainty that may cast significant doubt on
 the company''s ability to continue as a going concern and therefore it
 may be unable to realize its assets and discharge its liabilities in
 normal course of business.  The Company''s ability to continue as a
 going concern is dependent upon the factors mentioned in Note 37.
 
 9.  Attention is invited to the following Notes forming part of the
 financial statements:
 
 a) Note no. 30 With regard to certain contingent liabilities, whose
 impact is not ascertainable.
 
 
 b) Note no. 31 with regard order of settlement passed in the favor of
 company the Appeal of Income Tax department is pending before M.P. High
 court Gwalior.
 
 c) Note no. 38 (a) & (b) With regard to manner of utilization of fund
 raised through preferential allotment of equity shares in previous
 years.
 
 d) Note no. 39 With regard to the declared dividend Balance of Rs.90
 Lacs has not been transferred to separate bank account.
 
 Qualified opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, except for the matters described in
 
 paragraphs 1 to 8 above, and the resulting effects of all these on the
 relevant assets, liabilities and the loss for the period which are not
 quantifiable 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:
 
 (i) In the case of the Balance sheet of the State of affairs of the
 Company as at 31st March 2015.
 
 (ii) In the case of the Profit & Loss Account, of the ''LOSS'' for the
 year ended on that date.
 
 (iii) In the case of the Cash Flow Statement, of the cash fow for the
 year ended on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 2015 issued
 by the Company Law Board in terms of Sub-Section(11) of
 Section143,dated 10,April 2015 of the Companies Act,2013, we give in
 Annexure a statement on matters specified in paragraphs 3 and 4 of the
 said Order.
 
 2.  As required by section 143(3) of the Act, we report that:
 
 a.  Except as stated in our comments under Basis of Qualified Opinion
 ,we have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 b.  In our opinion, proper books of 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 complies with the
 Accounting Standards specified in section 133 of the Companies Act,
 2013, read with Rule 7 of the companies (Accounts) Rule 2014; However
 as explained above ,we are unable to comment upon the complete
 compliance with accounting standard AS 1 Disclosure of Accounting
 Policies, AS 2  valuation of Inventory , AS 9  Revenue
 Recognition, AS 28 Impairment of Assets and AS 29 Provision,
 Contingent Liabilities and Contingent Assets.
 
 e.  On the basis of the written representations received from the
 directors as on 31 March 2015 taken on record by the Board of
 Directors, none of the directors (except Mr. Ramesh Chand Garg) is
 disqualified as on 31 March 2015 from being appointed as a director in
 terms of Section 164(2) of the Act.
 
 f.  With respect to the other matters to be included in the Auditor''s
 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 has disclosed the impact of pending litigations on its
 financial positions in its financial statements as referred in note no.
 30 to the financial Statements.
 
 ii. The Company did not have long-term contracts including derivative
 contracts as such the question of commenting on any material
 foreseeable losses thereon arise.
 
 iii. According to the information and explanations given to us there
 was no delay in transferring amounts , required to be transferred , to
 the Investor Education and Protection Fund by the Company.
 
 Annexure to auditors; Report
 
 The Annexure referred to in Auditors'' report of even date to the
 members of K. S. OILS Limited on the financial statements for the
 twelve months period ended March 31, 2015.
 
 (i) (a) As informed to us, the Company has maintained proper records
 showing full particulars including quantitative details and situation
 of fixed assets on the basis of available information.
 
 (b) During the period, fixed assets have been physically verified by
 the management on the test basis. Such verification was made at
 reasonable intervals. We are informed that no material discrepancies
 were noticed on such observation.
 
 (ii) (a) As informed to us, inventory has been physically verified
 during the year by the management. In our opinion, the frequency of
 verification needs to be increased in relation to the size of the
 company and the nature of its business.
 
 (b) As mentioned in paragraph 2(b) of the Auditors'' report and as also
 stated in note 36, we are unable to comment upon reasonableness and
 adequacy of the procedures of physical verification of inventory
 followed during such verification.
 
 (c) In our opinion and according to the information and explanation
 provided to us by the Company and as mentioned in paragraph 1 (b) of
 the Auditors'' Report, the Company has not maintained proper records of
 inventory, as major of the inventory remained unmoved during the year.
 In the absence of availability of appropriate information, we are
 unable to comment upon further adjustments, if any, is required to be
 made in such regard.
 
 (iii) During current year the Company has not granted any unsecured
 loan to company covered in the register maintained under section 189 of
 the Companies Act, 2013.
 
 (a) The earlier loans granted along with interest thereon were re
 payable on demand. However no principal/interest has been received
 during the year.
 
 (b) As the Company has not demanded repayment of any such
 loan/interest, therefore there are no overdue amounts.
 
 (iv) In our opinion and according to. the information and explanations
 given to us, in addition to our comments in paragraph 1(b) & (c), 3 and
 6, of the Auditors'' Report, the existing internal control procedures
 are required to be made adequate with the size of the Company and the
 nature of its business for the purchase, of inventory and fixed assets
 and for the sale of goods. In our opinion there is a continuing failure
 to correct major weakness in the internal control system.
 
 (v) In our opinion and according to the information and explanations
 given to us, the company has not accepted any deposits from the public
 within the provision of Sections 73 to 76 or any other relevant
 provision of the Companies Act, 2013 and the rules framed there under.
 
 (vi) The Central Government has prescribed maintenance of cost records
 under section 148 (1) (d) of the Companies Act, 2013 in respect of
 Company''s Vanaspati, Refined Vegetable Oils and Power Generation''. We
 have broadly reviewed the books of accounts maintained by the Company
 pursuant to the rules made by the Central Government for the
 maintenance of cost records, and are of the opinion that prima facie,
 the prescribed accounts and records have not been made and maintained.
 
 (vii) In respect of statutory Dues:
 
 (a) According to the records of the Company, Undisputed statutory dues
 including provident fund, investor education and protection fund;
 employees'' state insurance, income tax, sales tax, wealth-tax, service
 tax, customs duty, excise duty, cess and other material statutory dues,
 if any applicable to it, have not been regularly deposited with
 appropriate authorities and there have been material delays in numerous
 number of cases. The Arrears of outstanding dues at the last day of
 financial year concerned for a period of more than six months from the
 date they became payable are as under:
 
 Name of the    Nature of the    Amount   Period    Due Date   Date of
 statute        dues            (Rs. in 
                                 Lacs)    to which 
                                          the                  payment
                                          amount
                                          relates
 
 Income Tax     Tax Deducted     12.36    Period 
                                          related    Various
                                                     dates     Paid 10.31
 Act            at Source               to 2014-15             Lacs up to
                                                               2/11/2015
 
 Employee 
 State          ESIC              2.66    Period 
                                          related    Various
                                                     dates
 Insurance 
 Act                                    to 2012-15
 
 Employees      Provident        77.29    Period 
                                          related to  Various 
                                                      dates    Paid 4.70
                                                               Lacs
 Provident 
 Fund           Fund                      2012-15              up to
 and Misce
 llaneous                                                      30/09/15
 Provisions 
 Act
 
 Central 
 Excise &       Excise
                Duty              2.73    Period 
                                          related to  Various 
                                                      dated
 Custom Act                               2013-15
 
 Service 
 Tax            Service
                Tax              59.74    Period 
                                          related to  Various
                                                      dated     Paid Rs.
                                 14.23    2013-15               Lacs up
                                                                to
                                                                7/10/201
 
 State 
 Sales Tax      VAT             877.13    Period 
                                          related to  Various
                                                      dated
                                          2013-15
 
 State 
 Sales Tax      WCT               0.56    Period
                                          related to  Various 
                                                      dated
                                          2012-15
 
 State 
 Sales Tax      Entry 
                Tax               98.98   Period 
                                          related to  Various
                                                      dated
                                          2012-15
 
 (b) Details of Dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
 duty of custom & Excise, Value Added Tax, Cess which have not been
 deposited as on march 31, 2015 on account of disputes are given below
 
 Name of the    Nature of 
                the dues     Amount   Period    Forum where dispute is
                                                pending
 statute                    (Rs. in 
                             lacs)    to which
                                      amount 
                                      relate
 
 Sales 
 Tax Act       Sales 
               Tax / CST      11     1998-99    High Court
 
 Sales 
 Tax Act       Sales 
               Tax / CST       6     2003-04    Revenue Board
 
 Sales 
 Tax Act       Sales 
               Tax / CST       3     2003-04    Revenue Board
 
 Sales 
 Tax Act       Sales 
               Tax / CST       4     2007-08    Deputy Commissioner
                                                Appeal, Gwalior
 
 Sales 
 Tax Act       Sales
               Tax / CST      119    2008-09    Deputy Commissioner
                                                Appeal, Gwalior
 
 Sales 
 Tax Act       Sales
               Tax / CST       52    2010-11    Additional 
                                                Commissioner, Gwalior
 
 Madhya 
 Pradesh       VAT             13    2007-08    Deputy Commissioner
                                                Appeal,
 VAT Act                                        Gwalior
 
 
 Madhya 
 Pradesh       VAT             19    2008-09    Tax Board Bhopal 
 VAT A c t
 
 Madhya 
 Pradesh       VAT           4560    2007-08    Hon''ble Settlement
                                                Commission ,
 VAT Act                                        Bhopal
 
 Madhya 
 Pradesh       VAT             10    2009-10    Additional Commissioner,
                                                Gwalior 
 VAT Act
 
 Madhya 
 Pradesh       VAT            202    2010-11    Additional Commissioner,
                                                Gwalior 
 VAT Act  
 
 Madhya 
 Pradesh       VAT            264    2010-11    Additional Commissioner,
                                                Gwalior 
 VAT Act
 
 Entry 
 Tax Act       Entry Tax       41    2006-07    Deputy Commissioner
                                                Appeal, Gwalior
 
 Entry 
 Tax Act       Entry Tax       10    2007-08    Deputy Commissioner
                                                Appeal,Gwalior
 
 Entry 
 Tax Act       Entry Tax     1205    2007-08    Hon''ble Settlement
                                                Commission ,Bhopal
 
 Entry 
 Tax Act       Entry Tax        1    2009-10    Tax Board Bhopal
 
 Entry 
 Tax Act       Entry Tax        3    2009-10    Additional Commissioner,
                                                Gwalior
 
 Entry 
 Tax Act       Entry Tax      668    2009-10    Additional Commissioner,
                                                Gwalior
 
 Entry 
 Tax Act       Entry Tax      196    2010-11    Additional Commissioner,
                                                Gwalior
 
 Central    
 Excise Act    Excise Duty     24    2001-02    High Court
 
 Central 
 Excise Act    Excise Duty      3    2002-03    High Court
 
 (C) According to the records of the Company, there are no amounts that
 are due to be transferred to the investor Education and Protection Fund
 in accordance with the relevant provisions of the Companies Act, 1956
 (1of 1956) and rules made there .
 
 (viii) Even after not considering the qualifications which are not
 quantifiable, The Company''s accumulated losses at the end of the
 financial year are more than fifty percent of its net worth.  The
 Company has incurred cash losses in this year and also in the
 immediately preceding financial year.
 
 (ix) As mentioned in paragraph 7 of the Auditors'' report and as also
 stated in note 33 the company has defaulted in repayment of dues to
 bank and financial institutions. According to the information and
 explanations given to us the amount and period of default could not be
 given as details such as overdue interest, penalties, damages, cost
 etc. as considered in their SERFASI Notice by lenders and other parties
 have not been mentioned or made available to the company. Further the
 Company has not provided any interest liability for the current period
 due to non- charging of interest by majority of banks and
 unavailability of their statements of accounts.
 
 (x) In our opinion and according to the information and explanations
 given to us, the company has not given any guarantee for loans taken by
 others from banks or financial institutions during the period
 
 (xi) No Term loan was raised during the year.
 
 (xii) 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 on or by the Company, noticed or reported during the year, nor
 have we been informed of such case by the management
 
                                               For Ladha G. D. & Co.
 
                                              Chartered Accountants
 
                                  Firm Registration number: 010962C
 
 New Delhi                                            Nitin Paharia
 
 Dated: December 5, 2015                                    Partner
 
                                          Membership number: 409770
स्रोत: रेलीगरे टेचनोवा

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