Mar 31, 2023
Independent Auditor''s Report
To the Members of
Spacenet Enterprises India Limited
We have audited the accompanying Standalone Financial Statements of Spacenet Enterprises India Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including
Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then
ended, and notes to the standalone financial statements including a summary of significant accounting policies
and other explanatory information.
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 Companies Act, 2013, as amended (the "Act")
in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, and its profit, total comprehensive income, its cash flows and the changes in equity
for the year ended on that date.
We conducted our audit of standalone financial statements in accordance with the Standards on Auditing, as
specified under Section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in
the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics.
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.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
standalone financial statements of the current period. These matters were addressed in the context of our audit of
the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matter described below to be the key audit matter to
be communicated in our report.
The Company''s Board of Directors is responsible for the other information. The other information comprises the
information included in the Report of the Board of Directors including Annexures thereto, Management Discussion
and Analysis Report and Business Responsibility Report, but does not include the consolidated financial statements,
standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent with the standalone
financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to
the preparation of these Standalone Financial Statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of 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 the 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 statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors of the Company is also responsible for overseeing the Company''s financial reporting
process.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for
expressing our opinion on whether the Company has adequate internal financial control with reference to
standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the
standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the standalone financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of
India in terms of Section 143(11) of the Act, we give in "Annexure 1" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March 31, 2023 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2023 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 with reference to standalone financial
statements of the Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure 2". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company''s internal financial controls with reference to Standalone Financial Statement.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements
of section 197(16) of the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of
section 197 of the Act.
h. 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, 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.
ii. The Company did not have any long-term contracts including derivative contract for which there were any
material foreseeable losses.
iii. There were no amounts, which were required to be transferred to the Investor Education and Protection Fund
by the Company.
iv.
a. The management has represented that, to the best of its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, no funds have been received
by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c. Based on the audit procedures that has been considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (i)
and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The company has not declared or paid any dividend during the year.
vi. Proviso to Rule 3(l) of the Companies (Accounts) Rules, 2014 for maintaining books of account using
accounting software which has a feature of recording audit trail (edit log) facility is applicable to the
Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 1l(g) of Companies (Audit and Auditors)
Rules, 2014 is not applicable for the financial year ended March 31, 2023.
Chartered Accountants
ICAI Firm Registration No. 104184W/W100075
Designated Partner
Membership No. 144424
UDIN: 23144424BGRNLC2487
Place: Mumbai
Date: May 30, 2023
Mar 31, 2015
We have audited the accompanying consolidated financial statements of
Northgate Com Tech Limited ("the companyÂ), and its subsidiaries
(collectively referred to as "the Group") which comprise the
consolidated Balance Sheet as at 31 March 2015, the consolidated Profit
and Loss Statement and the consolidated Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements.
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the ActÂ) with respect to
the preparation and presentation of these consolidated financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Group 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 provision of the Act for safeguarding the assets of the Group
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 control,
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 consolidated
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the consolidated financial statements.
The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the consolidated
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 consolidated 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 accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the consolidated 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
consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, and based on the consideration of the reports
of other auditors, on the financial statements / consolidated financial
statements of the subsidiaries and associates noted below, the
aforesaid consolidated 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 consolidated state of affairs of the Group as at 31st
March, 2015, and its consolidated profit and its consolidated cash
flows for the year ended on that date.
Other Matters
Financial Statements or Consolidated Financial Statements of certain
subsidiaries which reflect total assets of Rs 2643.59 Lakshs as at
March 31, 2015, total Revenues of Rs 75.12 Lakhs and net cash flows
amounting to Rs11.36 Lakhs fo the Year then ended, have been audited by
us.
We did not audit the financial statements/consolidated financial
statements of certain subsidiaries whose financial statements or
consolidated financial statements reflect total assets of Rs 5096.18
Lakhs, total revenue of Rs 7,159.55 Lakhs and not cash flows amounting
to Rs 14.00 Lakhs for the year then ended on that date. These financial
statements/consolidated financial statements have been audited by other
auditors whose reports have been furnished to us and our opinion is
based solely on the reports of the other auditors.
Our report is not qualified in respect of other matters.
for E V B Reddy & Associates
Chartered Accountants
Firm Reg. No. 011050S
CA.Navitha.K
Place : Hyderabad Partner
Date : 29-05-2015 M.No: 221085
Mar 31, 2014
We have audited the attached financial statements of Northgate Com Tech
Limited ("the Company") which comprise the Balance Sheet as at 31 March
2014 the statement of profit and loss and the cash flow statement for
the year ended, and a summary of on that date 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.
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 notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 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
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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by 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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. in the case of the Statement of Profit and Loss Account, of the
profit/ loss for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on other legal and regulatory
requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with Accounting Standards
notified under the Act read with the General Circular 15/2013 dated 13
th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
ANNEXURE TO AUDITORS' REPORT
The annexure referred to in paragraph 3 of our report of even date to
the members of Northgate Com Tech Limited ("the Company") for the year
ended 31 March 2014. We report that:
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. In
accordance with this program, fixed assets were verified during the
year and no material discrepancies were noted on such verification.
(c) Fixed assets disposed off /discarded during the year were not
substantial, and therefore, do not affect the going concern assumption.
(ii) The Company is a service company, primarily rendering Information
Technology services and online advertising services. Accordingly, it
does not hold any physical inventories. Thus, paragraph 4(ii) of the
Order is not applicable.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly,clause (a) to
(d) of the order are not applicable.
(b) According to the information and explanations given to us, the
Company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 105,569,932 and the year-end
balance of such loans was Rs. 89,545,702. The Company has not taken any
loans, secured or unsecured from firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the register
maintained under Section 301 of the Companies Act, 1956 is not, prima
facie, prejudicial to the interest of the Company. The repayment of the
principle is due after 31 March 2014, the date for which needs to be
decided.
(d) In the case of loan taken from the party listed in the register
maintained under Section 301, in repayment of the principal amounts and
the interest there on is not due, accordingly, clause 4(iii) (g) is not
applicable.
(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 fixed assets and with regard to the sale of services and
goods. The activities of the Company do not involve purchase of
inventory. We have not observed any major weakness in the internal
control system during the course of the audit.
(v) In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 for any of the services rendered by the Company. The
activities of the Company do not involve sale of goods.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees' State Insurance and
other material statutory dues have generally been regularly deposited
during the year by the Company with the appropriate authorities, except
for certain cases of Income Tax deducted at source, Sales Tax. Further,
as at the balance sheet date arrears of statutory dues amounting to Rs.
2,401,000 towards Income Tax is outstanding. As explained to us, the
Company did not have any dues on account of Investor Education and
Protection Fund, Wealth Tax, Customs Duty and Excise Duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance, Income Tax, Sales Tax, Service Tax and other material
statutory dues were in arrears as at 31 March 2014 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Wealth Tax, Customs Duty and Excise Duty
which have not been deposited with the appropriate authorities on
account of any dispute.
(x) The accumulated losses of the Company are more than fifty percent
of its networth as at 31st March 2014. However the company has not
incurred cash losses in the financial year and in the immediately
preceding financial year.
(xi) According to the information and explanation given to us and based
on the documents and records produced to us, the Company has not
defaulted in payment of dues to the financial institutions or banks.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, and according to the information and
explanations given to us, the Company is not a chit fund or a nidhi /
mutual benefit fund / society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) In our opinion and 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.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to information and explanations given to us, and on an
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to companies/ firms/ parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for Navitha and Associates
Chartered Accountants
Firm Registration No:012026S
CA.Navitha K
Place: Hyderabad Proprietor
Date: 30 May 2014 Membership No: 221085
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Northgate Com
Tech Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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
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 disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers
internal control relevant to the Company''s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure To Independent Auditors'' Report
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified every year. In our
opinion, this periodicity of physical verification is reasonable having
regard to size of the Company and nature of its assets. In accordance
with this program, fixed assets were verified during the year and no
material discrepancies were noted on such verification.
(c) Fixed assets disposed off/written off during the year were not
substantial, and therefore, do not affect the going concern assumption.
(ii) The Company is a service company, primarily rendering Information
Technology services and online advertising services. Accordingly, it
does not hold any physical inventories. Thus, paragraph 4(ii) of the
Order is not applicable.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.Accordingly, clause (a) to
(d) of the order are not applicable.
(b) According to the information and explanations given to us, the
Company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount outstanding during the year was Rs. 122,519,747 and the year-end
balance of such loans was Rs. 105,569,932. The Company has not taken
any loans, secured or unsecured from firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the register
maintained under Section 301 of the Companies Act, 1956 is not, prima
facie, prejudicial to the interest of the Company. The repayment of the
principle is due after 31 March 2013, the date for which needs to be
decided.
(d) In the case of loan taken from the party listed in the register
maintained under Section 301, in repayment of the principal amounts and
the interest there on is not due, accordingly, clause 4(iii) (g) is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with regard to the size of the Company and the nature of its
business with regard to the sale of services. The activities of the
Company do not involve purchase of inventory and sale of goods. We have
not observed any major weakness in the internal control system during
the course of the audit.
(v) In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 for any of the services rendered by the Company. The
activities of the Company do not involve sale of goods.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income- Tax, Wealth Tax and other material statutory dues have
generally been regularly deposited during the year by the Company,
except tax deducted at source Rs. 1,267,316 is outstanding as on the
balance sheet date,. with the appropriate authorities though there have
been some delays in a few cases of remittances. Further as explained to
us, the Company did not have any dues on account of Sales tax, Service
tax, Customs duty, Excise duty and Investor Education and Protection
Fund.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance, Income-Tax, Wealth Tax and other material statutory
dues were in arrears as at 31 March 2013 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty which have not been deposited with the appropriate
authorities on account of any dispute.
(x) The Company has not been registered for a period in excess of five
years. Accordingly, clause 4(x) of the order is not applicable.
(xi) In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to any
financial institution, banks or debenture holders during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, and according to the information and
explanations given to us, the Company is not a chit fund or a nidhi /
mutual benefit fund / society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks are not prejudicial to
the interest of the Company.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to information and explanations given to us, and on an
overall examination of the balance sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long-term investment.
(xviii)The Company has not made any preferential allotment of shares to
companies/ firms/ parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by public issues.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
for Navitha and Associates
Chartered Accountants
Firm Registration No:012026S
CA.Navitha K
Place: Hyderabad Proprietor
Date: 30 May 2013 Membership No: 221085
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