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Kellton Tech Solutions Ltd.

BSE: 519602 Sector: IT
NSE: KELLTONTEC ISIN Code: INE164B01022
BSE 00:00 | 17 Aug 47.85 -1.60
(-3.24%)
OPEN

50.90

HIGH

50.90

LOW

47.05

NSE 00:00 | 17 Aug 47.30 -1.80
(-3.67%)
OPEN

51.00

HIGH

51.00

LOW

46.20

OPEN 50.90
PREVIOUS CLOSE 49.45
VOLUME 35524
52-Week high 84.70
52-Week low 37.40
P/E 46.46
Mkt Cap.(Rs cr) 461
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 50.90
CLOSE 49.45
VOLUME 35524
52-Week high 84.70
52-Week low 37.40
P/E 46.46
Mkt Cap.(Rs cr) 461
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 TechSolutions Limited ("the Company") which comprise the Balance sheet as at 31stMarch 2017 the statement of Profit and loss and Cash Flow Statement for the year thenended and a summary of significant explanatory information.

Management’s Responsibility for the Financial Statements

2. The Management and Board of Directors of the Company are responsible for thematters stated in Section 134(5) of the Companies Act 2013 (‘the act’) withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair material misstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements basedon taken into account the provisions of the Act the accounting and auditing standards andmatters which are required to be included in the audit report under the provisions of theAct and the Rules made thereunder. We conducted our audit in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial -ment.

4. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequateinternalfinancialcontrols system over financial reporting and the operating effectivenessof such controls. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements

5. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the 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 2017 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection143 of the Act we give in the "Annexure A" a statement on the mattersSpecified in paragraphs 3 and 4 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 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct ;

f. With respect to theadequacyoftheinternalfinancialcontrols over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B" and

g. 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 theAuditor’s Report 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 under reportto transfer any sums to the Investor Education and Protection Fund as such the questionof delay in transferring such sums does not arise.

(iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08thNovember’ 2016 to 30th December’ 2016 and these are in accordance with the booksof accounts maintained by the Company.

for Mahesh Virender & Sriram
Chartered Accountants
(Firm’s Registration No.001939S)
Sd/-
Place : Hyderabad (B.R.Mahesh)
Date : 30th May 2017 Partner
Membership No.018628

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT

"ANNEXURE A" TO THE AUDITORS’ REPORT FOR THE YEAR ENDED 31ST MARCH 2017.

(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 intervals bythe Management and no material discrepancies were noticed.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 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 Act 2013is not mandatory to the Company.

(vii) (a) The Company has been generally regular in depositing dues relating to incometax sales tax service tax value added tax cess and any other material statutory dueswith the appropriate authorities. There were no undisputed amounts payable in respect ofstatutory dues in arrears as at 31st March 2017 for a period of more than six months fromthe date they became payable except for non payment of Outstanding Income Tax deducted atSource Rs.4.28 Crores and Service Tax collection Rs.2.38 Crores were unpaid.

(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 of dispute

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

(ix) The Company has not raised any money by way of initial public offer nor availedany term loans.

(x) No fraud by the Company or any fraud on the Company by its officers or employeeshas 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 177 and188 of Companies Act 2013 have been disclosed in the Financial Statements.

(xiv) The Company has not made preferential allotment.

(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 the ReserveBank of India Act 1934.

for Mahesh Virender & Sriram
Chartered Accountants
(Firm’s Registration No.001939S)
Sd/-
Place : Hyderabad (B.R.Mahesh)
Date : 30th May 2017 Partner
Membership No.018628

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

"ANNEXURE B" TO THE AUDITORS’ REPORT FOR THE YEAR ENDED 31ST MARCH 2017.Report on the Internal financial Controls under clause (i) if sub-section 3 of section 143of the Com -panies 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 2017 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 established basedontheinternalcontroloverfinancial by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility :

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial re- porting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 es -tablished 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 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 sufficientand appropriate toprovide a basis for 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance and generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 financialReporting :

Because of the inherent limitations of internal financial controls over financialreporting including the pos -sibility 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 finan -cial 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 31 2017 based on the internalcontrol overfinancialreporting criteria established by the Company considering theessential components of internal control.

for Mahesh Virender & Sriram
Chartered Accountants
(Firm’s Registration No.001939S)
Sd/-
Place : Hyderabad (B.R.Mahesh)
Date : 30th May 2017 Partner
Membership No.018628