To the Members of
N2N TECHNOLOGIES LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of N2N TECHNOLOGIESLIMITED ("the Company") which comprise the Balance Sheet as at March 312015 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Board of Directors is responsible for the matters stated in section 134(5) of thecompanies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the Accountingprincipal generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities selection andapplication of appropriate accounting policies making judgments and estimates that arereasonable and prudent and design implementation and maintenance of internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatements. An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditors judgment including the
Assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on whether the Companyhas in place an adequate internal financial controls system over financial reporting andthe operating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Companys directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2015 and its loss and its cash flows for the year ended on that date.
Emphasis of Matter
As referred in note number 30 to the financial statement the company have not compliedwith section 203 & section 134 (1) of Companies Act 2013. Our opinion is notqualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the other matters to be included in the Auditors Report inaccordance With Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us.
I. The Company does not have any pending litigations which would impact its financialposition.
II. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For DMKH & Co
FRN : 116886W
CA. Devki Nandan Mantri
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that:
i. a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
b) We have been informed that the fixed assets of the Company have been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification. In our opinion this periodicity of physical verification isreasonable having regards to the size of the company and the nature of its assets.
ii. a) As explained to us inventories (shares in demat form) have been verified by themanagement during the year. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanation given to us theprocedure of verification of Inventories referred to in 2(a) above followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) In our opinion and according to the information and explanation given to us thecompany has maintained proper records of inventories. As per the information andexplanation provided to us and having regard to the size of the company no materialdiscrepancies were noticed on verification of inventory as compared to book records.
iii. The company has granted interest free loan to one body corporate covered in theregister maintained under section 189 of the companies act 2013(the Act).
a) According to the information and explanation given to us such interest free loangiven to Body corporate listed in the register maintained under section 189 of thecompanies Act 2013 is prima facie prejudicial to the interest of the company to theextent interest not Charged. The terms of arrangements do not stipulate any repaymentschedule and the Loans are repayable on demand. Accordingly paragraph 3(iii)(a) of theOrder is not Applicable to the Company in respect of repayment of the principal amount.
b) There are no overdue amounts of more than rupees one lakh in respect of the loangranted to the body corporate listed in the register maintained under section 189 of theAct.
iv. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regards to the purchase of inventory (shares)fixed assets andsale of goods and services. During the course of our audit we have neither come acrossnor have been informed of any continuing failure to correct major weaknesses in theaforesaid internal control system.
v. The Company has not accepted any Deposits from any party therefore followingprovisions of Companies Act Sec 73 to 76 and rules made thereunder and permission ofReserve Bank of India the question does not arise.
vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for
vii. a) According to the information and explanation given to us and the records of thecompany examined by us in our opinion the company is regular in depositing theundisputed statutory dues including provident fund employees state insuranceincome tax sales-tax wealth tax service tax Duty of customduty of excise value addedtax and other and other material statutory dues as applicable with the appropriateauthorities except TDS amounting to Rs. 10192 and service tax on sitting fess to Rs. 8652not deposit for a period of more than six months from the date they became payable.
b) According to the information and explanation given to us and the records of thecompany examined by us there are no dues of income tax sales-tax wealth tax servicetax Duty of custom duty of excise value added tax and cess which have not beendeposited with the appropriate authorities on account of any dispute.
c) The are no amounts required to be transferred by the company to investor educationand protection fund in accordance with the provisions of the Companies Act 1956 and therules made thereunder.
viii. The company has no accumulated loss as at the end of the financial year and ithas not incurred any cash losses in the financial year ended on that date or in theimmediately preceding financial year.
ix. According to the records of the company examined by us and the information andexplanation given to us The Company has not taken any loan form financial institutionbank or debenture holders. Therefore the provision of clause 3(ix) of the said order isnot applicable to the company.
x. In our opinion and According to the information andexplanation given to us thecompany has not given any guarantee for others for loans taken by them from banks andfinancial institutions during the year. Therefore the provision of clause 3(x) of thesaid order is not applicable to the company.
xi. There are no term loans taken by the company therefore the question of applyingthe loans for the purpose for which loans taken does not arise.
xii. According to the information and explanations given to us no material fraud on orby the company has been noticed or reported during the course of audit.
For DMKH & Co
FRN : 116886W
CA. Devki Nandan Mantri