Mar 31, 2017
TO THE MEMBERS OF SMARTLINK NETWORK SYSTEMS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SMARTLINK NETWORK SYSTEMS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
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 and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
In conducting 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 of the standalone financial statements 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 misstatement.
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 obtained by us 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 state of affairs of the Company as at 31st March, 2017, 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 Section 143(3) of the Act, based on our audit, we report, to the extent applicable 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 account as 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, 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 prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
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, as amended, 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 24A to the standalone financial statements
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and produced to us by the Management.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ / âCARO 2016â) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Smartlink Network Systems Limited (âthe Companyâ) as of 31st March, 2017 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. 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.
Auditorâs 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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, to the best of our information and according to the explanations given to us, 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 31st March, 2017, 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.
Re: Smartlink Network Systems Limited
(Referred to in paragraph (2) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified by the Management during the year in accordance with a programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land that have been taken on lease and buildings constructed on such leasehold lands and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not 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.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. There are no unclaimed deposits and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules framed there under are not applicable to the Company.
(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 for manufacturing of networking products. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March, 2017 for a period of more than six months from the date they became payable.
(c) There were no dues to Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax as at 31st March, 2017 on account of disputes.
(viii) The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under clause (viii) of CARO 2016 is not applicable to the Company.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its subsidiary or persons connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) In our opinion and accordingly to the information and explanations given to us, in respect of the current year, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. However, the Company has filed an application for registration and categorization of the Company as Type I-NBFC-ND {Non-Banking Financial Company (NBFC) not accepting public funds} in terms of sub-section (2) of Section 45-IA of the Reserve Bank of India Act, 1934, subsequent to the year-end.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firmâs Registration No: 117366W/W-100018)
A. Siddharth
Partner
Mumbai, 17th May, 2017 Membership No: 31467
Mar 31, 2016
TO THE MEMBERS OF SMART LINK NETWORK SYSTEMS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SMART LINK NETWORK SYSTEMS LIMITED (âthe Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.
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 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 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 and the Order under section 143 (11) of the Act.
We conducted our audit of the financial statements 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 amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the 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 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 financial statements. 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 31st March, 2016, 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 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 account as 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards prescribed under section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
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 financial statements - Refer Note 24A to the financial statements
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Order") issued by the Central Government in terms of Section 143 (11) of the Act, we give in âAnnexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Smart link Network Systems Limited (âthe Company") as of 31st March, 2016 in conjunction with our audit of the 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. 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.
Auditorâs 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 "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized 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, to the best of our information and according to the explanations given to us, 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 31st March, 2016, 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.
Re: Smart link Network Systems Limited
(Referred to in paragraph (2) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified by the Management during the year in accordance with a programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land that have been taken on lease and buildings constructed on such leasehold lands and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not 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.
(iv) The Company has not granted any loans, made investments or provided guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. There are no unclaimed deposits and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules framed there under are not applicable to the Company.
(vi) The maintenance of cost records has been specified by the Central Government under section 148 (1) of the Companies Act, 2013 for manufacturing of networking products. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March, 2016 for a period of more than six months from the date they became payable except as under.
Name of the Statute |
Nature of Dues |
Amount (Rs, |
Period to which the amount relates |
Income Tax Act, 1961 |
Income Tax |
65,934 |
FY 2009-2010 |
(c) There were no disputed amounts payable in respect of Income-tax, Sales Tax, Service Tax, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March, 2016. Details of dues of Customs Duty and Excise Duty which have not been deposited as on 31st March, 2016 on account of disputes are given below:
Name of the Statute |
Nature of dues |
Forum where dispute is pending |
Financial Year to which amount relates |
Amount (Rs, |
Customs Act, 1962 |
Customs Duty |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2004-2005 |
1,514,221/-(Net of Rs, 900,000/of pre-deposit) |
Central Excise Act, 1944 |
Excise Duty |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2004-2005 |
3,226,176/-(Net of Rs, 1,400,000/of pre-deposit) |
Central Excise Act, 1944 |
Penalty (Excise Duty) |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2004-2005 |
4,626,176/- |
Central Excise Act, 1944 |
Excise Duty |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2001-2002 2002-2003 2003-2004 2004-2005 |
24,089,496/-(Net of Rs, 10,000,000/of pre-deposit) |
Central Excise Act, 1944 |
Penalty (Excise Duty) |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2001-2002 2002-2003 2003-2004 2004-2005 |
34,089,496/- |
Central Excise Act, 1944 |
Penalty (Excise Duty) |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2004-2005 |
100,000/- |
Central Excise Act, 1944 |
Penalty (Excise Duty) |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2004-2005 |
702,041/- |
Central Excise Act, 1944 |
Penalty (Excise Duty) |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2007-2008 |
362,961/- |
(viii) The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under clause (viii) of CARO 2016 is not applicable to the Company.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firmâs Registration no: 117366W/W-100018)
A. Siddharth
Partner
Mumbai, 5th May, 2016
Membership no: 31467
Mar 31, 2015
We have audited the accompanying financial statements of SMARTLINK
NETWORK SYSTEMS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is 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 the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 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 amounts and the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 financial
statements.
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 31st 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 in terms of Section 143(11)
of the Act, we give in the Annexure a statement of matters specified in
paragraphs 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 account as 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 25 to the
financial statements;
ii. The Company does not have any long-term contract including
derivative contract for which provision would be required for material
foreseeable losses;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
Re: Smartlink Network Systems Limited
(referred to in paragraph (1) under Report on Other Legal and
Regulatory Requirements section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) Some of the fixed assets were physically verified by the Management
during the year in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material having regard to
the size of the operations of the Company.
(iii) The Company has not granted loans, secured or unsecured, to
companies, firms or other parties listed in the Register maintained
under Section 189 of the Companies Act, 2013 and hence sub clauses (a)
and (b) are not applicable to the Company.
(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 with regard to purchase of inventory and fixed assets and the
sale of goods and services. During the course of our audit, we have
not observed any major weakness in the aforesaid internal control
system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year
and hence the directives issued by the Reserve Bank of India and the
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the Rules framed there under are not applicable
to the Company.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended and prescribed by the Central Government under Section 148
(1) of the Companies Act, 2013 and are of the opinion that, prima
facie, the prescribed cost records have been made and maintained. We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, and
the books and records examined by us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
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.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, Cess and other material
statutory dues in arrears as at 31st March, 2015 for a period of more
than six months from the date they became payable except as under.
Name of the Statute Nature of Dues Amount (Rs.)
Income Tax Act, 1961 Income Tax 65,934
Name of the Statute Period to which the amount relates
Income Tax Act, 1961 FY 2009-2010
(c) There were no disputed amounts payable in respect of Income Tax,
Sales Tax, Wealth Tax,Service Tax, Value Added Tax, Cess and other
material statutory dues in arrears as at 31st March, 2015. Details of
dues of Customs Duty and Excise Duty which have not been deposited as
on 31st March, 2015 on account of disputes are given below:
Name of the Nature of dues Forum where dispute
Statute is pending
Customs Act,1962 Customs Duty Customs, Excise and
Service Tax Appellate Tribunal
(CESTAT)
Central Excise Act, Excise Duty Customs, Excise and
1944 Service Tax Appellate Tribunal
(CESTAT)
Central Excise Act, Penalty Customs, Excise and
1944 (Excise Duty) Service Tax Appellate Tribunal
(CESTAT)
Central Excise Act, Excise Duty Customs, Excise and
1944 Service Tax Appellate Tribunal
(CESTAT)
Central Excise Act, Penalty Customs, Excise and
1944 (Excise Duty) Service Tax Appellate Tribunal
(CESTAT)
Central Excise Act, Penalty Customs, Excise and
1944 (Excise Duty) Service Tax AppellateTribunal
(CESTAT)
Central Excise Act, Penalty Customs, Excise and
1944 (Excise Duty) Service Tax AppellateTribunal
(CESTAT)
Central Excise Act, Penalty Customs, Excise and
1944 (Excise Duty) Service Tax Appellate Tribunal
(CESTAT)
Name of the Financial Year to Amount (Rs.)
Statute which amount relates
Customs Act,1962 2004-2005 1,514,221/-
(Net of Rs. 900,000/-
of pre-deposit)
Central Excise Act, 2004-2005 3,226,176/-
1944 (Net of Rs. 1,400,000/-
of pre-deposit)
Central Excise Act, 2004-2005 4,626,176/-
1944
Central Excise Act, 2001-2002 24,089,496/-
1944 2002-2003 (Net of
2003-2004 Rs. 10,000,000/-
2004-2005 of pre-deposit)
Central Excise Act, 2001-2002 34,089,496/-
1944 2002-2003
2003-2004
2004-2005
Central Excise Act, 2004-2005 1 00,000/-
1944
Central Excise Act, 2004-2005 702,041/-
1944
Central Excise Act, 2007-2008 362,961/-
1944
(d) The Company has transferred the amount required to be transferred
to Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made thereunder within the prescribed time.
(viii) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the year and the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. There are no dues to financial institutions and the Company has
not issued debentures.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by Others from
banks or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the Company does not have any term loan and hence the
question of commenting on the application thereof does not arise.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration no: 117366W/W-100018)
A. Siddharth
Partner
Mumbai, 13th May , 2015 Membership no: 31467
Mar 31, 2014
1. We have audited the accompanying financial statements of SMARTLINK
NETWORK SYSTEMS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s 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") (which continue to be applicable in
respect of Section 133 of the Companies Act, 2013 in terms of General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs) and 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.
Auditors'' Responsibility
3. 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 misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditors'' 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 the 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 the Company''s internal control. An audit also includes
evaluating the appropriateness of the 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. Opinion
6. 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 31st March, 2014;
b. in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003, ("the
Order") issued by the Central Government 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.
8. 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 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, the Statement of Profit and Loss, and the
CashFlow 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 (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
e. On the basis of the written representations received from the
Directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Re: Smartlink Network Systems Limited
(Referred to in paragraph 7 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
In our opinion and according to the information and explanations given
to us, the nature of the Company''s business / activities / results
during the year are such that clauses (vi), (xiii), (xiv), (xvi),
(xviii), (xix) and (xx) of paragraph 4 of the Order are not applicable
to the Company. In respect of other clauses, we report that:
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b. Some of the fixed assets were physically verified by the Management
during the year in accordance with a programme of verification, which,
in our opinion, provides for physical verification of all assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification;
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
ii. 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 accordingly to the information and explanations
given to us, the procedures of 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. In our opinion and accordingly to the information and explanations
given to us, the Company has maintained proper records of inventories
and no material discrepancies were noticed on physical verification.
iii. The Company has neither granted nor taken loans, secured or
unsecured, 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 is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in the aforesaid internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a. The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
b. Where each of such transaction is in excess of Rs. 5 lakhs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion, the internal audit function carried out during the
year, by a firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and the nature of
its business.
vii. W e have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (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.
v i i i . According to the information and explanations given to us
and the books of account examined by us, in respect of statutory dues:
a. The Company has generally been 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, Custom Duty, Excise Duty, Cess and other
material statutory dues where applicable, with the appropriate
authorities;
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employee State Insurance,
Sales tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at 31st March, 2014 for a
period of more than six months from the date they became payable except
as under.
Name of the
Statute Nature of Dues Amount (Rs.) Period to which the
amount relates
Income Tax
Act, 1961 Income Tax 65,934 FY 2009-2010
c. There are no cases of non-deposit with appropriate authorities of
disputed dues of IncomeÂtax, Sales Tax, Wealth Tax and Service Tax.
Details of dues of Custom Duty, Excise Duty and Cess which have not
been deposited as on 31st March, 2014 on account of disputes are given
below:
Name of the Nature of dues
dues Forum where
dispute Financial
Year to Amount
(Rs.)
Statute is pending which
amount
relates
Customs Act,
1962 Customs Duty Customs,
Excise and
Service 2004-2005 1,514,221/-
(Net of
Tax
Appellate
Tribunal Rs.
900,000/-
of
(CESTAT) pre-deposit)
Customs Act,
1962 Customs Duty Commissioner
of Customs 2004-2005 238,259/-
(Appeals)
Central
Excise Act,
1944 Excise Duty Customs,
Excise and
Service 2004-2005 3,226,176/-
(Net of
Tax
Appellate
Tribunal Rs.
1,400,000/-
of
(CESTAT)
pre-deposit)
Central
Excise Act,
1944 Penalty
(Excise Duty) Customs,
Excise and
Service 2004-2005 4,626,176/-
Tax
Appellate
Tribunal
(CESTAT)
Central
Excise Act,
1944 Excise Duty Customs,
Excise and
Service 2001-2002 24,089,496/-
(Net of
Tax
Appellate
Tribunal 2002-2003 Rs.
10,000,000/-
of
(CESTAT) 2003-2004 pre-deposit)
2004-2005
Central
Excise Act,
1944 Penalty
(Excise Duty) Customs,
Excise and
Service 2001-2002 34,089,496/-
Tax
Appellate
Tribunal 2002-2003
(CESTAT) 2003-2004
2004-2005
Central
Excise Act,
1944 Penalty
(Excise Duty) Customs,
Excise and
Service 2004-2005 100,000/-
Tax
Appellate
Tribunal
(CESTAT)
Central
Excise Act,
1944 Penalty
(Excise Duty) Customs,
Excise and
Service 2004-2005 702,041/-
Tax
Appellate
Tribunal
(CESTAT)
Central
Excise Act,
1944 Penalty
(Excise Duty) Customs,
Excise and
Service 2007-2008 362,961/-
Tax
Appellate
Tribunal
(CESTAT)
ix. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
x. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
xi. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xii. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xiii. I n o u r o p i n i o n and according to the information and
explanations given to us and on an overall examination of the Balance
Sheet of the Company, funds raised on short term basis have, prima
facie, not been used during the year for long term investment.
xiv. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company, was noticed or reported during the
year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm''s Registration no: 117366W/W-100018)
A. Siddharth
Partner
Mumbai, 29th April , 2014 Membership no: 31467
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Smartlink
Network Systems Limited (the Company), which comprise the Balance Sheet
as at 31st March, 2013, the Statement of Profit and Loss and the
Cash-Flow Statement for the year then ended and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 referred to in Section 211
(3C) of the Companies Act, 1956 (the Act) and 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.
Auditors'' 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 the
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 amounts and the 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 the 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 the Company''s internal control. An audit also includes
evaluating the appropriateness of the 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 31st March, 2013;
b. in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company 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 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 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 it 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 written representations received from the Directors
as on 31st March, 2013 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2013 from being
appointed as a director in terms of Section 274(1 )(g) of the Act.
Re: Smartlink Network Systems Limited
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
i. Having regard to the nature of the Company''s business/activities,
clauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
ii. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
b. All the fixed assets have not been physically verified by the
Management during the year but there is a regular programme of
verification which, in our opinion is reasonable having regard to the
size of the company and the nature of its assets. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification;
c. The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
a. The inventories have been physically verified during the year by
the Management. In our opinion the frequency of verification is
reasonable,
b. The procedures of 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 is maintaining proper records of inventories and no
material discrepancies were noticed on physical verification.
iv. The Company has not granted or taken any loans, to/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) (a) to (iii) (g) of paragraph 4 of the Order are not
applicable to the Company.
v. 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
purchase of inventory and fixed assets and the sale of goods/services.
During the course of our audit, we have not observed any major weakness
in such internal control system.
vi. In our opinion and according to the information and explanation
given to us, in respect of contracts or arrangements entered in the
Register maintained in pursuance of section 301 of the Companies Act,
1956:
a. The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
b. Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
vii. The Company has not accepted deposits from the public.
viii. In our opinion, the internal audit function carried out during
the year, by a firm of Chartered Accountants appointed by the
management have been commensurate with the size of the Company and the
nature of its business.
ix. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (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.
x. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been 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, Custom Duty, Excise Duty, Cess and other
material statutory dues where applicable with the appropriate
authorities.
b. There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues in arrears as at
31st March, 2013 for a period of more than six months from the date
they became payable.
c. Details of dues of Custom Duty, Excise Duty and Cess which have not
been deposited as on 31st March, 2013 on account of disputes are given
below:
Name of the Statute Nature of Forum where dispute is
dues pending
Customs Act,1962 Customs Customs, Excise and Service
Duty Tax Appellate Tribunal
(CESTAT)
Customs Act,1962 Penalty Customs, Excise and Service
(Customs Tax Appellate Tribunal
Duty) (CESTAT)
Customs Act,1962 Customs Customs, Excise and Service
Duty Tax Appellate Tribunal
(CESTAT)
Central Excise
Act, 1944 Excise Duty Customs, Excise and Service
Tax Appellate Tribunal
(CESTAT)
Central Excise
Act, 1944 Penalty Customs, Excise and Service
(Excise Duty) Tax Appellate Tribunal
(CESTAT)
Central Excise
Act, 1944 Excise Duty Customs, Excise and Service
Tax Appellate Tribunal (CESTAT)
Central Excise
Act, 1944 Penalty Customs, Excise and Service
(Excise Duty) Tax Appellate Tribunal (CESTAT)
Central Excise
Act, 1944 Penalty Customs, Excise and Service
(Excise Duty) Tax Appellate Tribunal (CESTAT)
Central Excise
Act, 1944 Penalty Customs, Excise and Service
(Excise Duty) Tax Appellate Tribunal (CESTAT)
Name of the Statute Financial Year to
which amount Amount (Rs.)
relates
Customs Act,1962 2004-2005 1,514,221/-(Net of
Rs. 900,000/- of pre-
deposit)
Customs Act,1962 2004-2005 2,414,221/-
Customs Act,1962 2000-2001 242,023,983/-
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
Central Excise Act, 1944 2004-2005 3,226,176/- (Net of
Rs. 1,400,000/-of pre-
deposit)
Central Excise Act, 1944 2004-2005 4,626,176/-
Central Excise Act, 1944 2001-2002 24,089,496/- (Net of
2002-2003 Rs. 10,000,000/- of
pre-
2003-2004 deposit)
2004-2005
Central Excise Act, 1944 2001-2002 34,089,496/-
2002-2003
2003-2004
2004-2005
Central Excise Act, 1944 2004-2005 100,000/-
Central Excise Act, 1944 2004-2005 702,041/-
xi. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xii. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks.
xiii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xv. In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loan during the year
and hence the question of commenting on application thereof does not
arise.
xvi. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have, prima facie, not been used during the
year for long term investment.
xvii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956.
xviii. The Company has not issued debentures; hence the question of
creating security or charge in respect thereof does notarise.
xix. During the year, the Company has not raised money by public issue.
xx. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the
Company, was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration no. 117366W)
A. B.Jani
Mumbai partner
Dated : 30th April, 2013 Membership no. 46488
Mar 31, 2012
1. We have audited the attached Balance sheet of Smartlink Network
Systems Limited ("the Company"), as at 31st March, 2012, the Statement
of Profit and Loss and the Cash-Flow Statement for the year ended on
that date, both annexed thereto. 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 the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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 (Auditor's Report) Order, 2003, (CARO)
issued by the Central Government in terms of section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(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, 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 dealt with by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the
significant accounting policies and 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 the Statement of Profit and Loss, of the profit
for the year ended on that date; and
(iii.) in the case of the Cash-flow statement, of the cash-flows for
the year ended on that date.
5. On the basis of written representations received from the
Directors, as on 31st March, 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956;
Re: Smartlink Network Systems Limited
(Referred to in paragraph 3 of our report of even date)
i) Having regard to the nature of the Company's business/activities,
clauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditor's
Report) Order, 2003 are not applicable.
ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) A major portion of the fixed assets have been physically verified
by the Management during the year. In our opinion, the frequency of
verification of fixed assets by the management is reasonable having
regard to the size of the Company and the nature of its assets.
Material discrepancies noticed on such verification have been properly
dealt with in the books of accounts;
(c) The fixed assets disposed off / written off during the year, in our
opinion, do not constitute a substantial part of the fixed assets of
the Company and such disposal has, in our opinion, not affected the
going concern status of the Company.
iii) In respect of its inventory:
(a) The inventories were physically verified during the year by the
Management at reasonable intervals.
(b) The procedures of 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 and no
material discrepancies were noticed on physical verification.
iv) The Company has not granted or taken any loans, to / 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) (a) to (iii) (g) of paragraph 4 of the
Order are not applicable to the Company.
v) 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
purchase of inventory and fixed assets and the sale of goods/services.
During the course of our audit, we have not observed any continuing
failure, to correct major weakness in such internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
vii) The Company has not accepted deposits from the public.
viii) In our opinion, the internal audit function carried out during
the year, by a firm of Chartered Accountants appointed by the
management have been commensurate with the size of the Company and the
nature of its business.
ix) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (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.
x) According to the information and explanations given to us in respect
of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st March, 2012 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2012 on account of disputes are given below:
Name of the Statute Nature of dues Forum where dispute is pending
Customs Act,1962 Customs Duty Customs, Excise and Service
Tax Appellate Tribunal (CESTAT)
Customs Act,1962 Penalty
(Customs Duty) Customs, Excise and Service
Tax Appellate Tribunal (CESTAT)
Central Excise Duty Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Central Penalty
(Excise Duty) Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Central Excise Duty Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Central Penalty
(Excise Duty) Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Central Penalty
(Excise Duty) Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Central Penalty
(Excise Duty) Customs, Excise and Service
Excise Act, 1944 Tax Appellate Tribunal (CESTAT)
Income Tax, Act, Income Tax Commissioner of Income Tax
1961 (Appeals)
Name of the Statute Financial Year to Amount (Rs.)
which amount relates
Customs Act,1962 2004-2005 1,514,221/-
(Net of Rs. 900,000/-
of pre-deposit)
Customs Act,1962 2004-2005 2,414,221/-
Central Excise
Act, 1944 2004-2005 3,226,176/-
(Net of Rs. 1,400,000/-
of pre-deposit)
Central Excise
Act, 1944 2004-2005 4,626,176/-
Central 2001-2002,2002-2003 24,089,496/-
Excise Act, 1944 2003-2004,2004-2005 (Net of Rs. 10,000,000/-
of pre-deposit)
Central 2001-2002,2002-2003 34,089,496/-
Excise Act, 1944 2003-2004,2004-2005
Central Excise
Act, 1944 2004-2005 100,000/-
Central Excise
Act, 1944 2004-2005 702,041/-
Income Tax, Act, 2007-08 30,297,980/-
1961 (Net of Rs. 10,000,000/-
of pre-deposit)
xi) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the year under
report and in the immediately preceding financial year.
xii) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks.
xiii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xv) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loan during the year
and hence the question of commenting on application thereof does not
arise.
xvi) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have not been used during the year for long
term investment.
xvii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956.
xviii) The Company has not issued debentures; hence the question of
creating security or charge in respect thereof does not arise.
xix) During the year, the Company has not raised money by public issue.
xx) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the
Company, was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration no. 117366W
A. B. Jani
Mumbai Partner
Dated: 8th May, 2012 Membership no. 46488
Mar 31, 2010
1. We have audited the attached Balance sheet of Smartlink Network
Systems Limited ("the Company) (formerly known as D-Link (India)
Limited), as at 31st March, 2010, the Profit and Loss Account and the
Cash-Flow Statement for the year ended on that date, both annexed
thereto. 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 the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the 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,
(CARO) issued by the Central Government in terms of section 227 (4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(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, the Profit and Loss Account 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 Profit and Loss Account and
the Cash-Flow statement dealt with by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the
significant accounting policies and 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 the Profit and
Loss account, of the profit for the year ended on that date; and (iii.)
in the case of the Cash-flow statement, of the cash-flows for the year
ended on that date.
5. On the basis of written representations received from the
Directors, as on 31st March, 2010 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2010
from being appointed as a director in terms of Section 274(1 )(g) of
the Companies Act, 1956;
Annexure To The Auditors Report
Re: Smartlink Network Systems Limited (formerly known as D-Link (India)
Limited)
(Referred to in paragraph 3 of our report of even date)
(i.) Having regard to the nature of the Companys business/activities,
clauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditors
Report) Order, 2003 are not applicable.
(ii.) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets;
(b) All the assets have not been physically verified by the Management
during the year but there is a regular programme of verification which,
in bur opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification;
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii.) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material having regard to
the size of the operations of the Company.
(iv.) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(v.) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi.) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
(vii.) According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year
and hence directives issued by the Reserve Bank of India and provisions
of sections 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the Rules framed there under are not applicable
to the Company.
(viii.) In our opinion, the internal audit function carried out during
the year, by a firm of Chartered Accountants appointed by the
management have been commensurate with the size of the Company and the
nature of its business.
(ix.) We have broadly reviewed the books of account maintained by the
Company pursuant to the Order made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 with regard to the networking products of the Company and are
of the opinion that prima facie, the prescribed accounts and records
have generally been made and maintained/ are under preparation. We
have, however, not made a detailed examination of the records with a
view to determining whether they are accurate or complete. To the best
of our knowledge and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of cost records for any other product of the Company.
(x.) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
employees state insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at 31st March, 2010 for a period of more than six
months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
31st March, 2010 on account of disputes are given below:
Name of the Nature of Forum where dispute is pending
Statute dues
Customs Customs Duty Customs, Excise and Service Tax
Act, 1962 Appellate Tribunal (CESTAT)
Customs Penalty Customs, Excise and Service Tax
Act, 1962 (Customs Duty) Appellate Tribunal (CESTAT)
Customs Customs Duty Customs, Excise and Service Tax
Act, 1962 Appellate Tribunal (CESTAT)
Customs Penalty Customs, Excise and Service Tax
Act, 1962 (Customs Duty) Appellate Tribunal (CESTAT)
Central Excise Excise Duty Customs, Excise and Service Tax
Act, 1944 Appellate Tribunal (CESTAT)
Central Excise Penalty (Excise Customs, Excise and Service Tax
Act, 1944 Duty) Appellate Tribunal (CESTAT)
Central Excise Penalty (Excise Customs, Excise and Service Tax
Act, 1944 Duty) Appellate Tribunal (CESTAT)
Central Excise Penalty (Excise Customs, Excise and Service Tax
Act, 1944 Duty) Appellate Tribunal (CESTAT)
Name of the Financial Year to Amount (Rs.)
statute which amount relates
Customs act,1962 2004-2005 1,514,221/-
(Net of Rs. 900,000/-
of pre-deposit)
Customs act,1962 2004-2005 2,414,221
Customs act,1962 2004-2005 3,226,176/-
(Netof Rs. 1,400,000/-
of pre-deposit)
Customs act,1962 2004-2005 4,626,176/-
Central Excise
act,1944 2001-2002 24,089,496/-
2002-2003 (Net of Rs.
2003-2004 10,000,000/- of
2004-2005 pre-deposit)
Central Excise
act,1944 2001-2002 34,089,496/-
2002-2003
2003-2004
2004-2005
Central Excise
act,1944 2004-2005 100,000/-
Central Excise
act,1944 2004-2005 702,041/-
(xi.) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses during the year under
report and in the immediately preceding financial year.
(xii.) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks.
(xiii.) In our opinion and according to the information and
explanations given to us, the Company has not granted any loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiv.) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xv.) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loan during the year
and hence the question of commenting on application thereof does not
arise.
(xvi.) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short term basis have not been
used during the year for long term investment.
(xvii.) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956.
(xviii.) There are no debentures issued and outstanding as at the end
of the year and hence the question of creating security or charge in
respect thereof does not arise.
(xix.) During the year, the Company has not raised money by public
issue.
(xx.) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the
Company, was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration no. 117366W
Mumbai A. B. Jani
Partner
Dated : 12th May, 2010 Membership no. 46488