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IKF Technologies Ltd.

BSE: 532414 Sector: IT
NSE: N.A. ISIN Code: INE052C01027
BSE 00:00 | 04 Feb IKF Technologies Ltd
NSE 05:30 | 01 Jan IKF Technologies Ltd
OPEN 0.28
PREVIOUS CLOSE 0.27
VOLUME 600
52-Week high 0.58
52-Week low 0.27
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.27
Sell Qty 22810.00
OPEN 0.28
CLOSE 0.27
VOLUME 600
52-Week high 0.58
52-Week low 0.27
P/E
Mkt Cap.(Rs cr) 12
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.27
Sell Qty 22810.00

IKF Technologies Ltd. (IKFTECHNOLOG) - Auditors Report

Company auditors report

To

The Members of IKF TECHNOLOGIES LIMITED

Report on the Ind AS financial statements :

We have audited the accompanying Ind AS financial statements of IKF TECHNOLOGIESLIMITED which comprise the Balance Sheet as at 31st March 2018 the Statement ofProfit and Loss (including other comprehensive income) Statement of Change in Equity andCash Flow Statement for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management's responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance cash flows and change in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified in the Companies (Indian Accounting Standards)Rules 2015 (as amended) under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility :

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act and the rule made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the Ind AS financial statements. The procedures selected dependon the auditor's judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the management as well as evaluating the overall presentation of theInd AS financial statements .

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

Opinion :

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its Profit (including other comprehensive income) its cashflows and the change in equity for the year ended on that date.

Other Matters

a) The financial information of the Company for the year ended March 31 2017 and thetransition date opening balance sheet as at April 1 2016 included in these Ind ASfinancial statements are based on the previously issued statutory financial statementsfor the years ended March 31 2016 and March 31 2015 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were audited by M/s.Mandawewala & Co. whose report for the year ended 31st March 2017 and 31st March 2016dated 27th May 2017 and 30th April 2016 respectively expressed an unmodified opinion onthose financial statements. The adjustments to those financial statements for thedifferences in accounting principles adopted by the Company on transition to the Ind AShave been audited by us on which we have expressed an unmodified opinion vide our reportdated 23rd May 2018.

b) The company had not complied with the provisions of the SEBI Act & regulationsunder section 11 11B and 11(4) of the SEBI (Prohibition of Fraudulent and Unfair TradePractices relating to securities Market) regulations 2003 in the matter of alleged marketmanipulation using GDR Issues under which SEBI had directed the company not to issueequity shares or any other instruments convertible into equity shares or any othersecurtiy for a period of ten years from the date of SEBI order dated 20.04.2015.

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 sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(i) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books;

(iii) The Balance sheet Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Change in Equity dealt with by thisReport are in agreement with the books of account;

(iv) In our opinion the aforesaid Ind AS Financial Statements comply with the IndainAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(v) On the basis of written representation received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as at 31stMarch2018 from being appointed as a director in terms of Section 164(2) of the Act.

(vi) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(vii) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has no pending litigations.

ii. The Company has no long-term contracts including derivative contracts hence noprovision is required under the applicable law or accounting standards;

iii. There are no amounts to be transferred to the Investor Education and ProtectionFund by the Company.

For AGARWAL VISHWANATH & ASSOCIATES
Chartered Accountants
Registration No.: 323024E
CA VISHWANATH AGARWAL
Place: Kolkata Partner
Date: 23rd May 2018 Membership No. : 054806

"Annexure A" referred to in Paragraph 1 of the Our Report of even date to themembers of IKF Technologies Limited on the accounts of the company for the year ended 31stMarch 2018.

i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The management has physically verified certain fixed assets during the year inaccordance with a programme of verification which in our opinion provides for physicalverification of the fixed assets at reasonable intervals having regard to the size of theCompany and nature of its assets. According to the information and explanations given tous no material discrepancies were 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.

ii) As explained to us inventories have been physically verified by the management atregular intervals during the year. In our opinion and according to the information andexplanations given to us no material discrepancies were noticed on such verification andthe same have been properly dealt with in the books of account.

iii) As informed to us the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 and as such clauses (iii) (a) (b)(c) of the order are not applicable to the Company.

iv) In respect of loans investments guarantees and security the provisions of section185 and 186 of the Companies Act 2013 have been complied with.

v) According to the information and explanation given to us the Company has notaccepted any deposit from the public and as such clause (v) of the order is not applicableto the Company.

vi) The Central Government has not specified the maintenance of cost records undersection 148(1) of the Companies Act 2013 in respect of the products dealt with by theCompany.

vii) According to the information and explanations given to us in respect of thestatutory dues:

a. The Company is generally regular in depositing undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State Insurance Income Tax Wealth Tax Sales Tax Service Tax Goods & Service Tax Customs DutyExcise Duty Cess and other applicable statutory dues with the appropriate authoritiesduring the year.

‘According to the information and explanations given to us there are undisputedamounts payable in respect of Service Tax and provident fund which were in arrears as at31st March 2018 for a period of more than six months from the date they becamepayable." Details are as follows:-

Particulars Amount ( ` in ‘000 )
Provident Fund* 700.00
Service Tax 107386.00
Total 108086.00

*The company had paid the amount under protest.

b. Details of dues of Income Tax which have not been deposited as at March 31 2018 onaccount of dispute are given below:

Name of the Statute Nature of the dues Amount (`in '000) Period to which amount relates Forum where Dispute is pending
Income Tax Act 1961 Income Tax 250.00 A .Y 2010-11 CIT (Appeal)-1/ Kolkata
Income Tax 418.00 A .Y 2012-13
Income Tax 481.00 A .Y 2013-14

Further the Company has not issue any debentures during the year under review.

ix) No moneys has been raised by way of initial public offer or further public offer(including debt instruments) and no any term loans has been obtained during the year andas such clause (ix) of the order is not applicable to the Company.

x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

xi) In our opinion and according to the information and explanations given to us themanagerial remuneration paid by the Company is covered under the provisions of section 197read with schedule V of the Companies Act 2013.

xii) The Company is not a Nidhi Company and as such clause (xii) of the order is notapplicable to the Company.

xiii) In our opinion and according to the information and explanation given to us noany transaction with the related parties are made covered under the provisions of section177 and 188 of Companies Act 2013 and hence provisions of clause (xiii) of the order arenot applicable to the company.

xiv) During the year under review the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures.

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-IA of the ReserveBank of India Act 1934.

For AGARWAL VISHWANATH & ASSOCIATES
Chartered Accountants
Registration No.: 323024E
CA VISHWANATH AGARWAL
Place: Kolkata Partner
Date: 23rd May 2018 Membership No. : 054806

Annexure – B referred to in paragraph 2 (vi) to the Independent Auditor's Reportof even date on the Standalone Financial Statements of IKF Technologies Limited.

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 March 31 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 my /our audit opinion on the Company's internal financial controlssystem over 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:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 31stMarch 2018 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI".

For AGARWAL VISHWANATH & ASSOCIATES
Chartered Accountants
Registration No.: 323024E
CA VISHWANATH AGARWAL
Place: Kolkata Partner
Date: 23rd May 2018 Membership No. : 054806