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Kellton Tech Solutions Ltd.

BSE: 519602 Sector: IT
NSE: KELLTONTEC ISIN Code: INE164B01022
BSE LIVE 15:40 | 22 Sep 95.05 -4.15
(-4.18%)
OPEN

97.25

HIGH

98.30

LOW

93.00

NSE 15:31 | 22 Sep 95.35 -3.45
(-3.49%)
OPEN

98.00

HIGH

99.00

LOW

94.50

OPEN 97.25
PREVIOUS CLOSE 99.20
VOLUME 8119
52-Week high 149.45
52-Week low 79.00
P/E 55.26
Mkt Cap.(Rs cr) 449
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 97.25
CLOSE 99.20
VOLUME 8119
52-Week high 149.45
52-Week low 79.00
P/E 55.26
Mkt Cap.(Rs cr) 449
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kellton Tech Solutions Ltd. (KELLTONTEC) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To The Members of

M/s Kellton Tech Solutions Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of M/s Kellton Tech SolutionsLimited ("the Company") which comprise the Balance sheet as at 31st March 2016the statement of Profit and loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the financial statements

2. The Management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. Thisresponsibility includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial controls that areoperating 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

3.Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand 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 accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

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

Opinion

6.1n 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 of the state of affairs of the Company as at 31stMarch 2016 its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 of the Order.

8. 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 purpose 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 and Statement of Profit and Loss and Cash flow statement dealtwith 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 written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct ;

f. In our opinion and to the best of our information and according to the explanationsgiven to us

We report as under with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014

(i) The Company does not have any pending litigations which would impact its financialposition.

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

(iii) There has not been an occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund as such thequestion of delay in transferring such sums does not arise.

for Mahesh Virender & sriram
Chartered Accountants
(Firm's Registration No.001939S)
Sd/-
(B.R.Mahesh)
Partner
Membership No.018628
Place : Hyderabad
Date : 30th May 2016

(i) In respect of the Company's fixed assets:

a) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records showing full particulars including quantitativedetails and situation of fixed assets.

b) These fixed assets have been physically verified by the Management at reasonableintervals. According to the information and explanation given to us no materialdiscrepancies were noticed on such verification.

c) The Company does not have any Immovable properties.

(ii) Physical verification of inventory has been conducted at reasonable intervalsby the Management and no material discrepancies were noticed.

(iii) The Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

(iv) In respect of Loans Investments guarantees & securities provisions ofsection 185 & 186 of the Companies Act have been complied with.

(v) The Company has not accepted any deposits within the directives issued by theReserve Bank Of India and within the meaning of provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 read with the Companies (Acceptanceof Deposits) Rules 1975. No order under the aforesaid sections has been passed by theCompany Law Board or the National Company Law Tribunal or the Reserve Bank Of India or anyCourt or any other Tribunal in this respect.

(vi) The maintenance of cost records under Section 148 (1) of the Companies Act2013 is not mandatory to the Company.

(vii) (a) The Company has been generally regular in depositing dues relating toincome tax sales tax service tax value added tax cess and any other material statutorydues with the appropriate authorities. There were no undisputed amounts payable in respectof statutory dues in arrears as at 31st March 2016 for a period of more thansix months from the date they became payable except for non payment of Outstanding IncomeTax deducted at Source & Service Tax .

(b) There were no dues of income-tax sales tax service tax value added tax or cessand any other material statutory dues which have not been deposited on account ofdispute.

(viii) The Company has not generally defaulted in repayment of loans or borrowingsfrom Banks Financial Institutions or Debenture holders.

(ix) The Company has not raised any money by way of initial public offer noravailed any term loans.

(x) No fraud by the Company or any fraud on the Company by its officers oremployees has been noticed or reported during the year.

(xi) The Managerial remuneration is provided in accordance with section 197 of theCompanies Act.

(xii) The Company is not a Nidhi Company.

(xiii) All transactions with the related parties in compliance with sections 177and 188 of Companies Act 2013 have been disclosed in the Financial Statements.

(xiv) The Company has made preferential allotment with in the provisions of Section42 of the Companies Act 2013 and the such amounts have been used for the purpose forwhich it was raised.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him.

(xvi) The Company is not required to be registered under section 45 - 1A of theReserve Bank of India Act 1934.

For Mahesh Virender
Chartered Accountants
(Firm's Registration No.001939S)
Sd/-
(B.R.Mahesh)
Place : Hyderabad Partner
Date : 30th May 2016 Membership No.018628

(Referred to in paragraph 8(f) under 'Report on other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls under clause (i) if sub-section 3 of section143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of M/s.KELLTON TECH SOLUTIONS LIMITED ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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 on internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement 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 reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to

permit preparation of financial statements in accordance and generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 of 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 controls overfinancial reporting were operating effectively as at March 312016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control.

For Mahesh Virender & sriram
Chartered Accountants
(firm's Registration No.001939s)
Sd/-
(B.R.Mahesh)
partner
Membership No.018628
Place: Hyderabad
Date: 30th May 2016