We have audited the attached Balance Sheet of M/s IKF Technologies
Limited as at 31st March 2011and the Profit and Loss Account of the
Company for the Year ended on that date, annexed hereto and report that
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain the reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis evidence supporting the amount and
disclosures on the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall flnancial statement
presentation. We believe that our audit provides a reasonable basis of
As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from an examination of those
(iii) The said Balance Sheet, Profit and Loss Account and Cash Flow
Statement are in agreement with the books of account;
(iv) In our opinion the Profit & Loss Account and the Balance Sheet of
the Company comply with the Accounting Standards referred to in the
sub- section (3C) of Section 211 of the Companies Act, 1956;
(v) On the basis of written representation received from the Directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Director is disqualified as on 31st March,
2011 from being appointed as a Director in term of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes thereon
give the information required by the Companies Act, 1956, in the manner
so required give a true and fair view, in conformity with accounting
principles generally accepted in India
a) in the case of Balance Sheet of the state of affairs of the company
as at 31st March, 2011.
b) in the case of the Profit & Loss Account of the Profit of the
Company for the year ended on that date and
c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(i) (a) The Company has maintained proper records of Fixed Assets
showing full particulars, including quantitative details and situation
of Fixed Assets.
(b) The physical verification of the Fixed Assets was conducted by the
management at the year end which is in our opinion is reasonable having
regard to the size of the Company and nature of its Fixed assets. The
company is in process of reconciliation of physically verified fixed
assets with the fixed assets register and management represents based
on their judgment that there will not be any material discrepancies.
(c) There was no major disposal of Fixed Assets during the year.
(ii) The company is a service company, primarily rendering information
technology enabled service and business process outsourcing (BPO)
service. Accordingly it does not hold any physical inventory. Thus
paragraph (ii) of the order is not applicable.
(iii) As informed to us, the company has not granted/ taken unsecured
loans to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act 1956.
(iv) In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business for
purchase of fixed assets and sale of services.
(v) Based on the audit procedure applied by us and according to the
information and explanations given to us by the management, we are of
the opinion that there was no transaction need to be entered in the
register maintained under Section 301 of the Companies Act 1956.
(vi) The Company has not accepted deposits from public with in the
meaning of Section 58A and 58AA of the Companies Act, 1956.
(vii) In our opinion, the company has an internal audit system, which
is required to be further strengthen.
(viii) The Central Government has not prescribed for the maintenance of
cost records under section 209(1) (d)of the Companies Act, 1956 for
service rendered by the company.
(ix) According to the information and explanations given to us by the
Company, the Company is generally regular in depositing undisputed
statutory dues with the appropriate authorities. According to the
information and explanations given to us there are no undisputed
amounts payable in respect of incomeTax, Wealth Tax, Sales Tax, Excise
Duty and Customs Duty were outstanding as at 31st March, 2011 for a
period of more than six months from the date they became payable.
(x) The Company does not have any accumulated loss and it has not
incurred any cash losses during the current financial year and in the
immediate preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us by the management we are of the opinion that the Company
has not defaulted in repayment of dues to financial institution or
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies.
(xiv) As informed and explained to us, the Company has not dealt /
traded in securities or debentures during the year.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by its associates or
subsidiaries from bank or financial institutions.
(xvi) According to the information and explanations given to us, the
Company did not have any term loan outstanding during the year.
(xvii) On the basis of information received from the management and
based on our examination of the Balance Sheet of the Company as at 31st
March 2011 we find that the funds raised on a short-term basis have not
been used for long-term investments and vice- versa.
(xviii)On the basis of information received from the management during
the year no allotment has been made by the company.
(xix) The Company did not have any outstanding debentures during the
(xx) According to the information and explanation given to us no fraud
on or by the Company has been noticed or reported during the year.
For Agarwal Vishwanath & Associates
Firm Reg.No 323024E
CA Vishwanath Agarwal
27th April, 2011 Membership No. 54806