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IKF Technologies Ltd.

BSE: 532414 Sector: IT
NSE: N.A. ISIN Code: INE052C01027
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OPEN 0.67
PREVIOUS CLOSE 0.70
VOLUME 2515
52-Week high 1.01
52-Week low 0.53
P/E
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.67
Sell Qty 1163908.00
OPEN 0.67
CLOSE 0.70
VOLUME 2515
52-Week high 1.01
52-Week low 0.53
P/E
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.67
Sell Qty 1163908.00

IKF Technologies Ltd. (IKFTECHNOLOG) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To the Members of

IKF TECHNOLOGIES LIMITED

Report on the Financial Statements :

We have audited the accompanying financial statements of IKF TECHNOLOGIESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 and the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of the significant accounting 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility :

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion :

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

1. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017

2. In the case of the Profit and Loss Account of the PROFIT for the year endedon that date;

3. In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other legal and Regulatory Requirements :

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 [hereinafter referred to as the Order] we give in the Annexure‘A' a statement on the matters specified in paragraphs 3 and 4 of the order.

2. As required by section 143(3) of the Act we report that:

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 [hereinafter referred to as the Order] we give in the Annexure‘A' a statement on the matters specified in paragraphs 3 and 4 of the order.

2. 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such control refer to ourseparate report in Annexure ‘B' (g) With respect to the other matters to be includedin 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 theexplanations given to us: (i) The Company has disclosed the impact of pending litigationson its financial position in its financial statement as referred to in Note No. 12(iii) to12(v) to the financial statements.

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection fund by the Company.

(iv) The Company has provided requisite disclosure in the Financial Statement as toholding as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 on the basis of information available with the Company. Basedon audit procedure and relying on management's representation we report that disclosuresare in accordance with the books of accounts maintained by the Company and as produced tous by the management. Refer Note – 1.B.14.

1 British Indian Street For Mandawewala and Co.
1st Floor Suite No. 110D Chartered Accountants
Kolkat-700 069 Firm Registration No. 322130E
CA Swati Singhal
Date: 27th May 2017 Partner
Place: Kolkata Membership No. 308308

The Annexure – ‘A' referred to in paragraph 1 of Our Report of even date tothe members of IKF Technologies Limited on the accounts of the company for the year endedMarch 31 2017.

1 . a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) All the assets have been physically verified by the management during the year butthere is a regular program of verification which in our opinion is reasonable havingregard to the size of company and the nature of its assets. No materials discrepancieswere noticed on such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the Company.

2. The Company is a service company primary rendering Telecom services BPO servicesSoftware services and other IT enable services. Accordingly it does not hold any physicalinventories. Thus Paragraph 3(ii) of the order is not applicable to the Company.

3. The Company has not granted any loans secured or unsecured to companies firms LLPor other parties covered in the Register maintained under section 189 of the Act.Accordingly the provisions of Clause 3(iii) (a) to (c) of the Order are not applicable tothe Company.

4. In our opinion and according to the information and explanation given to us theCompany has complied with the provision of section 185 and 186 of the Act with respect tothe loans and investments made.

5. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of Clause 3(v) of the CARO2016 are not applicable to the company.

6. The Central Government of India has not prescribed the maintenance of cost recordsunder sub section (1) of section 148 of the Companies Act 2013 for any of the servicesrendered by the company.

7. a) According to the records of the company the company is not regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax wealth tax service tax duty ofcustom duty of excise value added tax cess and other material statutory dues applicableto it. According to the information and explanations given to us there are undisputedamounts payable in respects of the aforesaid dues outstanding as at 31st March 2017 fora period of more than six months from the date they became payable. Details are asfollows:-

Particulars Amount ( Rs. in ‘000)
PF 1903
ESI 1123
Service Tax 73417
Total 76443

b) Details of dues of Income Tax Sales Tax duty of Custom Wealth Tax Service Taxduty of Excise Value

Added Tax and Cess which have not been deposited as on 31stMarch 2017 on account ofdispute are given below :

Sl. No. Name of Statute Nature of Dues Amount ( Rs. in ‘000) Period Forum where dispute is pending
250/- A.Y. 2010-11
1 Income Tax Act 1961 CIT (Appeal) – 1
2 Income Tax 418/- A.Y. 2012-13
/ Kolkata
3 481/- A.Y.2013-14

8. According to the records of the company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to any bankas at the balance sheet date.

9. Based on our audit procedures and on the information given by the management wereport that the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purpose forwhich they are raised.

10. In our opinion and according to the information and explanation given to us nomaterial fraud by the Company or on the Company by its Officers or employees has beennoticed or reported during the year.

11. According to the information and explanation given to us and based on ourexamination of the records of the Company the Managerial Remuneration paid by the Companyhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Companies Act.

12. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) ofthe Order are not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

15. According to the audit procedure performed and the information and explanationsgiven to us by the management the company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly the provisions of Clause 3(xv)of the order are not applicable to the Company.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

1 British Indian Street For Mandawewala and Co.
1st Floor Suite No. 110D Chartered Accountants
Kolkat-700 069 Firm Registration No. 322130E
CA Swati Singhal
Date: 27th May 2017 Partner
Place: Kolkata Membership No. 308308

Annexure-B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IKFTechnologies Limited ("the Company") as of 31st March 2017 in conjunction withour audit of financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that: (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly re_ect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants Of India.

1 British Indian Street For Mandawewala and Co.
1st Floor Suite No. 110D Chartered Accountants
Kolkat-700 069 Firm Registration No. 322130E
CA Swati Singhal
Date: 27th May 2017 Partner
Place: Kolkata Membership No. 308308