Auditor Report of Nettlinx Ltd.
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s. NETTLINX LIMITED (âthe Companyâ), which comprise the balance sheet as at March 31, 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone financial statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance 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 the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the financial position of the Company as at 31 March, 2018, and its profit, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
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 purposes of our audit.
(b) In our opinion proper books of accounts required by law have been 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, the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
(e) on the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 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 âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs 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 Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. Refer Note 26.
ii) There is no requirement for any provision as required by any act or Accounting standards for material for foreseeable losses, if any on long term contracts including derivative contracts.
iii) There are no amounts required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure A to the Auditorsâ Report
Annexure referred to in paragraph under âReport on Other Legal and Regulatory Requirementsâ section of our report of the Independent Auditorsâ Report of even date of NETTLINX LIMITED, on the standalone financial statements for the year ended March 31, 2018
i. In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state the following:
a) The Company is generally maintaining proper records showing full particulars, including quantitative details and situation for all fixed assets.
b) The company generally have regular programme of physical verification of fixed assets by which fixed assets were verified in a phased manner over a period of three years.
c) According to information and explanation given to us, title deeds of immovable Properties are held in the name of the company.
ii. The company has no inventory, thus, paragraph 3(ii) of the Order is not applicable to the company.
iii. The company has granted 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. Thus, paragraph 3(iii) of the Order is applicable to the company. However the company has given advances to the companies, firms, other parties covered in the register maintained under section 189 of the Act, and in our opinion and to the best of our examination, the terms are not prejudicial to the interests of the company.
iv. The Company has not made any transactions in the nature of loans, investments, guarantees, and security, where provisions of section 185 and 186 of the Companies Act, 2013 are applicable. Thus, paragraph 3(iv) of the Order is not applicable to the Company.
v. The company has not accepted any deposits, within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Thus, paragraph 3(v) of the Order is not applicable to the company.
vi. According to information and explanation given to us, the Central Government has not prescribed maintenance of cost records as per section 148 of Companies act 2013.
vii. a) The Company is generally regular in depositing undisputed statutory dues, including Provident fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Value Added Tax, GST, Cess and other material statutory dues applicable to it to the appropriate authorities.
b) As per the information given by the company, generally there are no material dues of duty of customs, income tax, sales tax, duty of excise, service tax which have not been deposited with the appropriate authorities on account of any dispute as on March 31, 2018.
viii. In our opinion and according to information and explanations given to us, the company has not defaulted in payment of dues to Banks, Government, Financial Institutions as on date of Balance Sheet.
ix. The company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the reporting period. According to information provided to us term loans availed during the reporting period was applied for the purposes for which those were raised.
x. According to the information and explanations given to us, no material fraud by the company or on the company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to information and explanation given to us, the company has provided managerial remuneration in accordance with Section 197 read with schedule V to the Companies Act, 2013.
xii. In our opinion, the company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable for the company.
xiii. In our opinion and according to information and explanations given to us, all transactions with the related parties are in compliance with Sections 177 and 188 of Companies Act, 2013 and the details of such transactions have been disclosed in the Financial statements of the company as required by applicable Accounting Standards.
xiv. According to information and explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to information and explanation given to us, the company has not entered into non-cash transactions with directors or any persons connected with him. Thus, paragraph 3(xv) of the Order is not applicable to the company.
In our opinion, the company is not required to be registered under section 45IA of Reserve Bank of India Act 1934. Thus, paragraph 3(xv) of the Order is not applicable to the company.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Compan ies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of M/S NETTLINX LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 issued by the Institute of Chartered Accountants of India (âICAIâ).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 companyâs 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 Institute of Chartered Accountants of India. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs internal financial control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) 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 authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 conditions, or that the degree 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 and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, 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 issued by the Institute of Chartered Accountants of India.
For C Ramachandram & Co.,
Chartered Accountants,
Firm Registration No. 002864S
Sd/-
Premnath Degala
Place: Hyderabad Partner
Date: 29.05.2018 M.No: 207133
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Nettlinx Limited ("the Companyâ), which comprise the Balance Sheet as on March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible for the matters stated in section 134(5) of the Companies Act, 2013("the Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in section 133 of the Act, read with rule 7 of companies (Accounts) Rules, 2014.
This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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; design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance 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 the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements. 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. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion whether the Company has in place an adequate internal Financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statement.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2016 and its profit and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order, 2016("the orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the order.
2. As required by Section 143(3) of the Act, We further 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, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the accounting standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on March 31, 2016, taken on record by the board of directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
f. In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014::
i. The Company has, in accordance with the generally accepted accounting practice, disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise
The Annexure referred to in our report to the members of Nettlinx Limited (''The Company'') for the year ended 31st March 2016. We report that:
i. In respect of the fixed assets of the Company:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) These Fixed assets have been physically verified by the management at reasonable intervals, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
ii. In respect of the inventory of the Company:
(a) The management has conducted the physical verification of inventory at reasonable intervals.
(b) No material discrepancies were noticed on such verification.
iii. In respect of loans, secured or unsecured, garanted or taken by the company to / from companies, firms or other parties covered by the clause 76 of section 2 of the Companies Act,2013:
(a) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the company, are not prima facie prejudicial to the interest of the company.
(b) The company is regular in receipt of interest on such loans.
(c) There is no overdue for more than 5lakhs rupees.
iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
v. In our opinion and according to the information given to us, the Company has not accepted deposits. Therefore, the provisions of the clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi. As per the notification no.G.S.R.425 (E) dated 30th June 2014 issued by Ministry of corporate affairs, as per clause 3(B) (iii) of the Companies (Cost Records and Audit) Rules,2014 company is falling under the category for maintaining the cost records but company''s turnover is less than the threshold limit prescribed under the rule. And as per notification G.S.R. 425 (E) dated 30th June 2014 issued by Ministry of corporate affairs, as per clause 4 of the companies (Cost Records and Audit) Rules,2014 cost audit is not mandatory for the company.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has been regular in depositing the undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues where ever applicable to it with the appropriate authorities and there were no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess which have not been deposited on account of any dispute.
viii. In our opinion and on verification of records, the company has not defaulted in repayment of dues to its bankers and financial institutions.
ix. In our opinion, the term loans have been applied for the purpose for which they were raised.
x. In our opinion, Based upon audit procedures performed and the information and explanations given by the management, we report that no fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
xi. In our opinion, based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii. In our opinion, the company is not a Nidhi Company. Therefore, the provisions of clause 4(xii) of the Order are not applicable to the Company.
xiii. Based upon the audit procedures performed and according to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. In our opinion, based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
xv. In our opinion, based upon the audit procedures performed and information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected by him. Accordingly, the provisions of clause 3(xv) of the Order are not applicable to the Company.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3(xvi) of the Order are not applicable to the Company.
For M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Sd/-
Place : Hyderabad (Jainik M Soni)
Date : 30.05.2016 Partner
Membership No. 149967
Mar 31, 2015
We have audited the accompanying financial statements of Nettlinx
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Management and Board of Directors of the Company are responsible
for the matters stated in section 134(5) of the Companies Act,
2013("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 Accounting Standards referred to in section 133 of the Act,
read with rule 7 of companies (Accounts) Rules, 2014. This
responsibility includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding 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; design, implementation and maintenance of adequate internal
financial controls, that are operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance 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 the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amount and disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion whether the Company has in place an
adequate internal Financial control system over financial reporting and
the operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonable- ness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) order, 2015("the
order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the order.
2. As required by Section 143(3) of the Act, We further 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, the Statement of Profit and Loss, and the cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the aforesaid standalone financial statements
comply with the accounting standards referred to in Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the board of
directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014.
i. The Company has, in accordance with the generally accepted
accounting practice, disclosed the impact of pending litigations on its
financial position in its financial statements  Also Refer Note 29 to
the financial statements
ii. The Company did not have any long- term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our report to the members of Nettlinx
Limited ('The Company') for the year ended 31st March 2015. We report
that:
i. In respect of the fixed assets of the Company:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at
reasonable intervals, According to the information and explanations
given to us no material discrepancies were noticed on such
verification.
ii. In respect of the inventory of the Company:
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management of the Company.
(b) In our opinion and according to the information and explanations
given to us,the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Company is proper in maintaining proper records of inventory
and no material discrepancies were noticed on physical verification.
iii. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under Section 189 of the Act:
a) The company has granted loans to subsidiary. In respect of the said
loan, the outstanding amount as at the year- end is 442.01 lakhs.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
c) In respect of the said loans, interest amounting to Rs. 40.79 lakhs
is overdue as at March 31, 2015.
d) The company has not taken any loans during the year from companies,
firms or other parties covered in the register 189 of the companies
act, 2013.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business. In our
opinion, and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
control system.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits. Therefore, the
provisions of the clause (v) of paragraph 3 of the Order are not
applicable to the Company.
vi. As per the notification no. G.S.R. 425 (E) dated 30th June 2014
issued by Ministry of corporate affairs, as per clause 3 (B) (iii) of
the Companies (Cost Records and Audit) Rules, 2014 company is falling
under the category for maintaining the cost records but company's
turnover is less than the threshold limit prescribed under the rule.
And as per notification G.S.R. 425 (E) dated 30th June 2014 issued by
Ministry of corporate affairs, as per clause 4 of the Companies (Cost
Records and Audit) Rules, 2014 cost audit is not mandatory for the
company.
vii. According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has been irregular sometimes in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities and there were no
arrears of outstanding statutory dues as at the last day of the
financial year concerned for a period of more than six months from the
date they became payable.
(b) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund.
viii.The accumulated losses at the end of the financial year are less
than fifty percent of its net worth. The Company has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
ix. In our opinion and on verification of records, the company has not
defaulted in repayment of dues to its bankers and financial
institutions.
x. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the company on the basis of security by way of pledge of
shares, debentures and other securities.
xi. In our opinion, the term loans have been applied for the purpose
for which they were raised.
xii. To the best of our knowledge and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by management.
For M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
(Jainik M Soni)
Partner Membership No.149967
Place: Hyderabad
Date : 26/05/2015
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of Nettlinx
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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 Standards notified under the Companies Act,1956("the
Act") read with general circular 15/2013 dated September 13,2013 of the
Ministry of Corporate Affairs in respect of section 133 of Companies
Act,2013 in accordance with the accounting principles generally
accepted in India .This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India.Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amount and disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order, 2003("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the order.
2. As required by Section 227(3) of the Act, We report that:
a. We have 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, the Statement of Profit and Loss, and the cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
notified under the act read with general circular 15/2013 dated
September 13,2013 of the Ministry of Corporate Affairs in respect of
section 133 of Companies Act,2013 in accordance with the accounting
principles generally accepted in India
e. On the basis of the written representations received from Directors
as on March 31,2014, taken on record by the board of directors, none of
the directors is disqualified as on March 31, 2014 from being appointed
as a director in terms of Section 274(1) (g) of the Act.
Annexure to Independent Auditor''s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date
1. In respect of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information physical
verification of inventories followed by the management are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act,1956:
a) The Company has given loans to subsidiaries. In respect of the said
loans, the outstanding amount as at the year - end is Rs 364.08 lakhs
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
c) In respect of the said loans, interest amounting to Rs 35.14 lakhs
is overdue as at March 31, 2014.
d) The Company has not taken any loans during the year from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 Consequently, the requirements of
Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Company''s (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues:
According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have
been generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than six months
from the date of becoming payable.
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11 . Based on our audit procedures and according to the information
and explanations given to us, we are of the opinion that the Company
has not defaulted in repayments of dues to financial institutions and
banks.
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities and other investments have been held by
the Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks and financial institutions.
16. The Company has not raised new term loans during the year. The
term loans outstanding at the beginning of the year have been applied
for the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment
18. The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the companies Act, 1956.
19. The company does not have any debentures and hence the
applicability of the clause regarding the creation of security or
charge in respect of debentures issued does not arise.
20. The company has not raised any monies by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us,no material fraud on or by the company has been noticed or
reported during the year.
for M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Sd/-
(M. DEVARAJA REDDY)
Partner
Membership No.No.026202
Place: Hyderabad
Date : 26.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Nettlinx
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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 Accounting Standards referred to in section 211(3C) of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amount and disclosures in the financial statements. 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. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) In the case of the Statement of Profit and Loss, of the loss 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order, 2003("the
order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the order.
2. As required by Section 227(3) of the Act, We report that:
a. We have 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, the Statement of Profit and Loss, and the cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
referred to in Section 211(3C) of the Act;
e. On the basis of the written representations received from the
directors as on March 31st, 2013, taken on record by the board of
directors, none of the directors is disqualified as on March 31, 2013
from being appointed as a director in terms of Section 274(1)
(g) of the Act.
Referred to in Paragraph 1 under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date
1. In respect of its fixed assets a) The Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets on the basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information physical
verification of inventories followed by the management are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has given loans to subsidiaries. In respect of the said
loans, the outstanding amount as at the year -end is Rs. 187.58 lakhs.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
c) In respect of the said loans, interest amounting to Rs. 31.47 lakhs is
overdue as at March 31, 2013.
d) The Company has not taken any loans during the year from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 except an amount of Rs. 31.24 Lakhs
interest free loan from the Director of the Company. Consequently, the
requirements of Clauses (iii) (f) and (iii) (g) of paragraph 4 of the
Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Company''s (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues:
According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have
been generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2013 for a period of more than six months
from the date of becoming payable.
10. The accumulated losses of the Company at the end of the financial
year are not more than fifty percent of its net worth and the Company
has not incurred cash losses during the financial year covered by the
audit and in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayments of dues to financial institutions and
banks.
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities and other investments have been held by
the Company in its own name.
15. The Company has not given any guarantees for loans taken by others
from banks and financial institutions.
16. The Company has not raised new term loans during the year. The
term loans outstanding at the beginning of the year have been applied
for the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the companies Act, 1956.
19. The company does not have any debentures and hence the
applicability of the clause regarding the creation of security or
charge in respect of debentures issued does not arise.
20. The company has not raised any monies by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the company has been noticed or
reported during the year.
for M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Sd/-
(K. SRINIVASULU REDDY)
Partner
Membership No.024191
Place: Hyderabad
Date : 30.05.2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of NETTLINX LIMITED, as
at 31st March, 2012 and also the Profit and Loss Account of the company
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended, 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 paragraph 4 and 5
of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes 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, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as at 31st March, 2012 from
being appointed as a director in terms of Clause (g) of sub- section
(1) of Section 274 of the Companies Act, 1956; and
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2012;
(ii) in the case of profit and loss account, of the loss for the year
ended on that date; and
(iii) in the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
The annexure referred to in paragraph 3 of our report of even date to
the members of NETTLINX LIMITED as at 31st March 2012
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanation given to us, the fixed
assets have been physically verified by the management at regular
intervals and no material discrepancies between the book records and
the physical inventory have been noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not effect the going concern assumption.
(2) (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on such physical verification.
(3) (a) As informed, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the companies Act, 1956. Therefore the
provisions of clauses (iii) (b) to (d) of the order are not applicable.
(b) As informed, the company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under sec.301 of the companies Act, 1956. Hence the
provisions of clause (iii) (f) & (g) of the order are not applicable.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with size of the company and the nature of its business,
with regard to the purchase of fixed assets and for of services.
Further, on the basis of our examination and according to the
information and explanations given to us, we have neither come across
nor have we been informed of any instance of major weakness in the
aforesaid internal control system.
(5) According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the companies Act 1956 during the year to be entered in the register
required to be maintained under that section. Accordingly, commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
(6) The company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
there under.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(8) As per the information and explanations given to us, in respect of
the class of industry the Company falls under, the maintenance of cost
records has not been prescribed by the Central Government under Section
209(1)(d) of the Companies Act, 1956. Therefore, the provision of
clause (viii) of paragraph 4 of the Order is not applicable to the
Company.
(9) (a) According to the information and explanations given to us, and
as per the records of the Company, in our opinion the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income tax, Sales tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues with
the appropriate authorities, where applicable. Based on the information
furnished to us, there are no undisputed statutory dues as on 31st
March 2012, which are outstanding for a period exceeding six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no cases of non-deposit with the appropriate authorities of
disputed dues of sales tax/ income tax/ customs tax/ wealth tax/
service tax/ excise duty and Cess.
(10) The company has not incurred cash losses during the financial year
under audit and in the immediately preceding financial year.
(11) According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
(12) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, securities, debentures and other
investments.
(13) The company is not a chit fund or a nidhi / mutual benefit fund
/society. Therefore, the provisions of sub clause (a), (b), (c) and
(d) of clause (xiii) of paragraph 4 of the Order are not applicable to
the Company.
(14) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause (xiv) of
paragraph 4 of the Companies (Auditors Report)Order 2003 are not
applicable to the Company.
(15) The company has not given any guarantee for loans taken by others
from bank or financial institutions and hence clause (xv) of paragraph
4 of the Order is not applicable to the Company.
(16) The company has not obtained any term loans during the Financial
Year.
(17) On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
(18) According to the information and explanation given to us, the
company has not made any preferential allotment of share to the parties
and companies covered in the register maintained under sec.301 of the
companies Act 1956 and hence the applicability of the clause regarding
the price at which shares have been issued and whether the same is
prejudicial to the interest of the company does not rise.
(19) The company has not issued debentures and hence clause (xix) of
paragraph 4 of the Order is not applicable to the Company.
(20) The Company has not raised any money through a public issue during
the year. Therefore, the provision of clause (xx) of paragraph 4 of
the Order is not applicable to the Company.
(21) Based on the audit procedures performed and information given to
us and the representation made by the Management, we report that no
fraud on or by the Company has been noticed or reported during the
year.
For M/s. DEVA & CO
Firm Reg.No.000722S
Chartered Accountants
Sd/-
(K. SRINIVASULU REDDY)
Partner
Membership No.024191
Place: Hyderabad
Date:16-08-2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of NETTLINX LIMITED, as
at 31st March, 2010 and also the Profit and Loss Account of the company
for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date. 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended, 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 paragraph 4 and 5
of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes 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, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors are disqualified as at 31st March, 2010 from
being appointed as a director in terms of Clause (g) of sub- section
(1) of Section 274 of the Companies Act, 1956; and
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2010;
(ii) in the case of profit and loss account, of the Loss for the year
ended on that date; and
iii) in the case of cash flow statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The annexure referred to in paragraph 3 of our report of even date to
the members of NETTLINX LIMITED as at 31* March 2010
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b According to the information and explanation given to us, the
company has a phased program of verification of fixed assets which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its business.
(c) Fixed assets disposed off during the year were not substantial and
therefore, do not effect the going concern assumption.
(2) The Company is a service company, primarily rendering Internet and
information technology services. Accordingly it does not hold any
physical inventories. Accordingly, paragraph 4(ii) of the Order is not
applicable.
(3) (a) The company has not granted loans, to other companies covered
in the register maintained under section 301 of the Act.
(b) The other companies to which the company has granted loans have
been regular in payment of interest; however there are no stipulations
as to repayment of principal amounts.
(c) The company has not taken any loans from the companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. As the Company has not taken any loans, the
provisions of sub clause (e), (f) and (g) of Clause iii of Paragraph 4
of the Order are not applicable to the company.
(4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure commensurate
with size of the company and the nature of its business, for purchase
of fixed assets and sale of services. Further, on the basis of our
examination and according to the information and explanations given to
us, we have neither come across nor have we been informed of any
instance of major weakness in the aforesaid internal control system.
(5) According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that section. Accordingly, commenting on transactions
made in pursuance of such contracts or arrangements does not arise.
(6) The company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
there under.
(7) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(8) As per the information and explanations given to us, in respect of
the class of industry the Company falls under, the maintenance of cost
records has not been prescribed by the Central Government under Section
209(1 )(d) of the Companies Act, 1956. Therefore, the provision of
clause (viii) of paragraph 4 of the Order is not applicable to the
Company.
(9) (a) According to the information and explanations given to us, and
as per the records of the Company, in our opinion the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income tax, Sales tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues with the
appropriate authorities, where applicable. Based on the information
furnished to us, there are no undisputed statutory dues as on 31st
March 2010, which are outstanding for a period exceeding six months
from the date they became payable.
b) According to the information and explanations given to us, there are
no cases of non-deposit with the appropriate authorities of disputed
dues of sales tax/ income tax/ customs tax/ wealth tax/ service tax/
excise duty and Cess.
10 The company has not incurred cash losses during the financial year
under audit and in the immediately preceding financial year.
11 According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12 The company has not granted any loans and advances on the basis of
security by way of pledge of shares, securities, debentures and other
investments.
13 The company is not a chit fund or a nidhi/ mutual benefit fund
/society. Therefore, the provisions of sub clause (a), (b), (c) and (d)
of clause (xiii) of paragraph 4 of the Order are not applicable to the
Company.
14 According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause (xiv) of
paragraph 4 of the Order are not applicable to the Company.
15 The company has not given any guarantee for loans taken by others
from bank or financial institutions and hence clause (xv) of paragraph
4 of the Order is not applicable to the Company.
16 The company has not obtained any term loans during the Financial
Year.
17 On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18 The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19 The company has not issued debentures and hence clause (xix) of
paragraph 4 of the Order is not applicable to the Company.
20 The Company has not raised any money through a public issue during
the year. Therefore, the provision of clause (xx) of paragraph 4 of
the Order is not applicable to the Company.
21 Based on the audit procedures performed and information given to us
and the representation made by the Management, we report that no fraud
on or by the Company has been noticed or reported during the year.
For M/s.DEVA&CO
Chartered Accountants
Firm Reg.No:000722S
Sd/-
(M. Devaraja Reddy)
Partner
Membership No. 026202
Place : Hyderabad
Date : 26.08.2010
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