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Kellton Tech Solutions Ltd.

BSE: 519602 Sector: IT
NSE: KELLTONTEC ISIN Code: INE164B01022
BSE 00:00 | 19 Dec 30.45 0.05
(0.16%)
OPEN

29.95

HIGH

30.80

LOW

28.90

NSE 00:00 | 19 Dec 30.45 0.25
(0.83%)
OPEN

30.20

HIGH

30.70

LOW

30.05

OPEN 29.95
PREVIOUS CLOSE 30.40
VOLUME 4179
52-Week high 84.70
52-Week low 25.75
P/E 29.56
Mkt Cap.(Rs cr) 293
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.95
CLOSE 30.40
VOLUME 4179
52-Week high 84.70
52-Week low 25.75
P/E 29.56
Mkt Cap.(Rs cr) 293
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

To The Members of

Kellton Tech Solutions Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofKellton Tech Solutions Limited (‘the Company') which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and a summary of the significant accounting policies and other explana -toryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 (‘the Act') with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehen -sive income cashflows and changes in equity of the Company in accordance with the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating' effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

In conducting our audit we have taken into account the provisions ofthe Act 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 thereunderand the Order issued under Section 143(11) of the Act.

We conducted our audit of the standalone financial statements 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 standalone from materialmisstatement. financial

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion .statements onthestandalone financial

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs profit total comprehensive the Company as at income the March 312018andits changes in equity and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss includingother comprehensive income Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting

Standards prescribed under Section 133 of the Act.

e. On the basis of the written representations received from thedirectors of the Company as on March

31 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in ‘Annexure A'. Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule

11 ofthe Companies (Audit and Auditors) Rules 2014 as amended in ouropinion 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 onits financial position in its standalone financial statements.

ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts. iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central Government in terms of Section 143(11) of theAct we give in ‘Annexure B' a statement on the matters specified in paragraphs 3 and4 of the Order.

For Sastri&Shah

Chartered Accountants

FRN: 003642S

Sd/-

(C. Pavan Kumar)

Managing Partner

M.NO.205896

Place : Hyderabad

Date : 30/05/2018

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on theCompany's system over financialreporting. controls internal financial

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial state -ments for external purposes inaccordance with generally accepted accounting principles.

A company's internal financial control over financial reportingincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of the management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of theinternalfinan -cial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 March 31 2018 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.

For Sastri&Shah

Chartered Accountants

FRN: 003642S

Sd/-

(C. Pavan Kumar)

Managing Partner

M.NO.205896

Place : Hyderabad

Date : 30/05/2018

ANNEXURE ‘A' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the members of Kellton Tech SolutionsLimited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of sub-section 3 of Section 143 of the Companies Act 2013 (‘theAct')

We have audited the internal financial controls over financialreporting of Kellton Tech Solutions Lim -ited (‘the Company') as of March 31 2018 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 Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the information financial timelypreparation ofreliable asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express controls over opinion financial onthe internal reporting of the

Company based on our audit. We conducted our audit in accordance withthe Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the‘Guidance Note') issued by the Institute of

Chartered Accountants of India and the Standards on Auditing prescribedunder Section

143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls.

Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and evaluating the designand operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the members of Kellton Tech SolutionsLimited of even date)

On the basis of such checks as we considered appropriate and accordingto the information and explanations given to us during the course of our audit we reportthat:

i. In respect ofthe Company's fixed assets: a. The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets. b. The Company has a program of verification to cover all theitems of fixed assets in a phased manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets.

Pursuant to the program certain fixed assets were physically verifiedby the Management during the year. According to the information and explanations given tous no material discrepancies were noticed on such verification. c. According to theinformation and explanations given to us the records examined by us and based on theexamination of the conveyance deeds provided to us we report that the title deedscomprising all the immovable properties of land and buildings which are freehold are heldin the name of the Company as at the Balance Sheet date. In respect of immovableproperties of land and building that have been taken on lease and disclosed as fixedassets in the standalone financial statements the lease agreements are in the name of theCompany.

ii. The Company is in the business of providing software servicesand has physical inventories. As explained to us physical verification of inventories hasbeen conducted by the Management at reasonable intervals during the year. No materialdiscrepancies were noticed.

iii. According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013.

iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of Sections 185 and186 of the Act in respect of grant of loans making investments and providing guaranteesand securities as applicable.

v. The Company has not accepted deposits during the year and doesnot have any unclaimed deposits as at March 31 2018 and therefore the provisions of theclause 3 (v) of the Order are not applicable to the

Company.

vi. The maintenance of cost records hasnot Government under Sectionbeenspecified bythe Central

148(1) of the Companies Act 2013 for the business activities carriedout by the Company. Thus reporting under Clause 3(vi) of the order is not applicable tothe Company.

vii. According to the information and explanations given to us inrespect of statutory dues: a. The Company has generally been regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Goods and Service Tax Value Added Tax Customs Duty ExciseDuty Cess and other material statutory dues applicable to it with the appropriateauthorities. b. There were no undisputed amounts payable in respect of ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax Value Added TaxGoods and Service Tax Customs Duty Excise Duty Cess and other material statutory duesin arrears as at March 31 2018 for a period of more than six months from the date theybecame payable.

c. There were no dues of Income Tax Sales Tax Service Tax Goodsand Service Tax Excise Duty and Value Added Tax which have not been deposited as at March31 2018 on account of dispute.

viii. According to the information and explanations given to us andbased on the records of the company examined by us the Company has availed loans orborrowings from multiple Banks the repayments of which during the year have been promptwithout any default.

ix. The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) or term loans and hencereporting under Clause 3 (ix) of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the informationand explanations given to us no fraud by the Company or no material fraud on the Companyofficers or employees byits has been noticed or reported during the year.

xi. In our opinion and according to the information andexplanations given to us the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

xii. The Company is not a nidhi company and hence reporting underClause 3 (xii) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information andexplanations given to us the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

xiv. During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly paid convertible debenturesand hence reporting under Clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its directors or persons connected to its directors and hence provisionsof Section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934.

For Sastri&Shah

Chartered Accountants

FRN: 003642S

Sd/-

(C. Pavan Kumar)

Managing Partner

M.NO.205896

Place : Hyderabad

Date : 30/05/2018