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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
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VOLUME 600
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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 0.28
52-Week low 0.00
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:

Opinion

We have audited the accompanying standalone financial statements of M/s.IKF Technologies Ltd. (the Company) which comprise the Balance Sheet as at 31st March 2019 the Statement of Profit and Loss(Including Other Comprehensive Income) the Statement Of Changes In Equity and the Statement of Cash Flow for the year ended on that date and a summary of significant accounting policies and other explanatory information(hereinafter referred to as the standalone financial statements.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone financial statements give the information required by the Companies Act 2013 (`Act') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescibed under section 133 of the act read with the companies (Indian accounting Standards) Rules2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 312019 the Loss (Including Other Comprehensive income) changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statement in accordance with the standards on auditing specified under section 143 (10) of the Act (Sas). Our responsibilities under those Standards are further described in the auditor's responsibilities for the audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with the independence requirement that are relevant to our audit of the standalone Financial Statements under the provisions of the act and the rules made thereunder and we have fulfilled our ethical responsibilities in accordance with these requirements and the ICAI's Code of ethics. We Believe that the audit evidence we have obtained is sufficient and apporpriate to provide a basis for our audit opinion on the standalone financial statement.

Key audit matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

i) SEBI has issued an impunged order dated 20th April 2015 to the Company and directed Company not to issue equity shares or any other instrument convertible into equity shares or any other security for a period of 10 years. Company has already undergone the prohibitioin for a period of approximately 7 years and 8 months and an appeal has been fled before Securities Appellate Tribunal (SAT) against the said impunged order of SEBI.

Auditor's Response- The matter is in appeal with concerned authorities and the positions taken by the management are based on the application of their best judgment relating to interpretation of laws/regulations.

ii) Note-33 to the Standalone Financial Statements - Contingent Liabilities & Commitmentsas at March 312019 the Company has exposures towards litigations relating to matters as set out in the aforesaid Notes.

Auditor's Response - As the ultimate outcome of the matters are uncertain and the positions taken by the management are based on the application of their best judgment relating to interpretation of laws/regulations it is considered to be a Key Audit Matter.

iii) Note-33(h) to the Standalone Financial Statements as at March 312019 the Company had received a letter dated 10th August 2017 from BSE for initiated queries with respect to listed shell companies in terms of SEBI letter dated 07th August 2017 for which the management is taking necessary action to represent and/or defend the same.

Auditor's Response- The company has material uncertain matters under dispute which involves significant judgements to determine the possible outcome.

iv) Note-4 to the Standalone Financial Statements - Property Plant & Equipmentsas at March 312019 includes Rs.41.05 Cr as Capital Work-in-progress given to Citigate and Biofel FZE to set-up Biofuel projects out of India.

Auditor's Response- The ultimate outcome of the matters are uncertain and the positions taken by the management are based on the application of their best judgment in relation to project.

v) Note-11 to the Standalone Financial Statements - Trade receivableas at March 312019 includes Rs.59.48 crores which are receivable from overseas parties for which management is taking measures to realise the same.

Auditor's Response - The details are obtained to review the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution.

Information other than the financial statements and auditors' report thereon

The Company's board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis Board's Report including Annexures to Board's Report Business Responsibility Report Corporate Governance and Shareholder's Information but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management's responsibility for the Financial Statements Key audit matters

The Company's board of directors are responsible for the matters stated in section 134 (5) of the Act with respect to the preparation of these 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. 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 statement that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

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 of the Companies Act 2013 we give in the Annexure-A a statement on the matters specified 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:

a.) We have sought and 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 comply with the Accounting Standards 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 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f.) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

g.) 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 details of pending litigations which would impact financial position of the company are mentioned in point no 7(b) of annexure to CARO Repot.

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

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

For AGARWAL VISHWANATH & ASSOCIATES
Chartered Accountants
FRN : 323024E
Place : KolkataCA Vishwanath Agarwal
Date : 30.05.2019Membership No : 054806
Partner

Annexure A referred to in Paragraph 1 of the Our Report of even date to the members of IKF Technologies Limited on the accounts of the company for the year ended 31st March 2019.

I) a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b. The management has physically verified certain fixed assets during the year in accordance with a programme of verification whichin our opinion provides for physical verification of the fixed assets at reasonable intervals having regard to the size of the Company and nature of its assets. According to the information and explanations given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of our examination of the records of the company the title deeds of immovable properties are held in the name of the company.

ii) The company is a service company primary rendering Telecom Services Software services and other IT enable services. Accordingly it does not hold any physical inventories. Thus clause (ii) of the order is not applicable to the company.

iii) As informed to us the Company has not granted any loans secured or unsecured to companies firms Limited Liability Partnerships or other parties covered in the register maintained 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 section 185 and 186 of the Companies Act 2013 have been complied with.

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

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

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

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

According to the information and explanations given to us there are undisputed amounts payable in respect of Service Tax and provident fund which were in arrears as at 31st March 2019 for a period of more than six months from the date they became payable. Details are as follows:-

ParticularsAmount ( ' in `000 )
Provident Fund*8.70.00
Service Tax53572.00
Total54442.00

*The company had paid the amount under protest.

b. Details of dues of Income Tax & service tax which have not been deposited as at March 31 2019 on account of dispute are given below:

Name of the StatuteNature of the duesAmount ('in '000)Period to which amount relatesForum where Dispute is pending
Income Tax Act 1961Income Tax250.00A.Y 2010-11CIT (Appeal)-1/Kolkata
Finance Act 1994Service Tax53814.00F.Y 2012-13 to 2015-16Deputy Assistant Commissioner

viii) The Company has not defaulted in payments of loans or borrowing from a financial institution bank or Government. 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 and as 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 Company or on the Company by its offic ers or employees has been noticed or reported during the year.

xi) In our opinion and according to the information and explanations given to us the managerial remuneration paid by t he Company is covered under the provisions of section 197 read 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 not applicable to the Company.

xiii) According to the information and explanations given to us and based on our examination of the records of the Company transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

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

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

xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For AGARWAL VISHWANATH & ASSOCIATES

Registration No.: 323024E

Chartered Accountants

(CA VISHWANATH AGARWAL)

PARTNER

Membership No. : 054806

Place: Kolkata

Date: 30th May 2019

Annexure - B referred to in paragraph 2 (vi) to the Independent Auditor's Report of 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 Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of IKF Technologies Limited (the Company) as of March 312019 in conjunction with our audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in 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 of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my/our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that:

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

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

c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisitionuseor disposition of the Company'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 financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditionsor that the degr ee of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting a nd such internal financial controls over financial reporting were operating effectively as at 31stMarch 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stat ed in the Guidance Note issued by the ICAI.

For AGARWAL VISHWANATH & ASSOCIATES

Registration No.: 323024E

Chartered Accountants

(CA VISHWANATH AGARWAL)

PARTNER

Membership No. : 054806

Place: Kolkata

Date: 30th May 2019.

   

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