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Nettlinx Ltd.

BSE: 511658 Sector: Telecom
NSE: N.A. ISIN Code: INE027D01019
BSE LIVE 15:40 | 15 Dec 69.90 -1.05
(-1.48%)
OPEN

70.00

HIGH

71.00

LOW

69.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 70.00
PREVIOUS CLOSE 70.95
VOLUME 3245
52-Week high 146.00
52-Week low 60.25
P/E 59.74
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 70.00
CLOSE 70.95
VOLUME 3245
52-Week high 146.00
52-Week low 60.25
P/E 59.74
Mkt Cap.(Rs cr) 80
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nettlinx Ltd. (NETTLINX) - Auditors Report

Company auditors report

To the Members of

Nettlinx Limited

Report on Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s. NettlinxLimited ("the Company") which comprise the Balance Sheet as at 31 March2017 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management'sResponsibility for the Standalone Financial Statements

The Management and Board of Directors of the Company are responsible for the mattersstated in section 134(5) of the Companies Act 2013("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial positionfinancial performance of the Company in accordance with the accountingprinciples generally accepted in India including Accounting Standards referred to insection 133 of the Act read with rule 7 of companies (Accounts) Rules 2014.

This responsibility includes 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 and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amount anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion whether the Company has inplace an adequate internal Financial control system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the management as well as evaluating the overall presentation of thefinancial 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 statement.

Opinion

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 in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India a) in the case of the Balance Sheet ofthe state of affairs of the Company as at March 312017; b) in the case of the Profit andLoss statement of the Profit for the year ended on that date; c) in the case of the cashflow 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 2016("the order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the order.

2. As required by Section 143(3) of the Act We further report that: a. We have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The Balance Sheet the Statement of Profit and Loss and theCash 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 theaccounting standards referred to in 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 31March 2017 taken on record by the board of directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act.

f. with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014::

i. The Company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise

iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.

For M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Place: Hyderabad (Jainik M Soni)
Date :30.05.2017 Partner
Membership No. 149967

Annexure to the independent Auditors Report

The Annexure referred to in our report to the members of Nettlinx Limited (‘TheCompany') for the year ended 31st March 2017. We report that: i. In respect ofthe fixed assets of the Company: (a) The Company has maintained proper records showingfull particulars including quantitative details and situation of fixed assets.

(b) These Fixed assets have been physically verified by the management at reasonableintervals no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the company. ii. Inrespect of the inventory of the Company: (a) The management has conducted the physicalverification of inventory at reasonable intervals.

(b) No material discrepancies were noticed on such verification. iii. In respect ofloans secured or unsecured garanted or taken by the company to / from companies firmsor other parties covered by the clause 76 of section 2 of the Companies Act2013: (a) Inour opinion and according to the information and explanations given to us the rate ofinterest and other terms and conditions of the loans given by the company are not primafacie prejudicial to the interest of the company.

(b) The company is regular in receipt of interest on such loans.

(c) There is no overdue for more than 5 lakhs rupees. iv. In our opinion and accordingto the information and explanations given to us the company has complied with theprovisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security. v. In our opinion and according to the informationgiven to us the Company has not accepted deposits. Therefore the provisions of theclause (v) of paragraph 3 of the Order are not applicable to the Company.

vi. As per the notification No.G.S.R.425 (E) dated 30th June 2014 issued byMinistry of corporate affairs as per clause 3(B) (iii) of the Companies (Cost Records andAudit) Rules2014 company is falling under the category for maintaining the cost recordsbut company's turnover is less than the threshold limit prescribed under the rule. And asper notification G.S.R. 425 (E) dated 30th June 2014 issued by Ministry ofcorporate affairs as per clause 4 of the companies (Cost Records and Audit) Rules2014cost audit is not mandatory for the company. vii. According to the information andexplanations given to us in respect of statutory dues: (a) According to the informationand explanations given to us and on the basis of our examination of the books of accountthe Company has been regular in depositing the undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales Tax Wealth Tax ServiceTax Customs Duty Excise Duty Cess and other material statutory dues where everapplicable to it with the appropriate authorities and there were no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Wealth Tax Service Tax Customs Duty Excise Duty Cess which havenot been deposited on account of any dispute. viii. In our opinion and on verification ofrecords the company has not defaulted in repayment of dues to its bankers and financialinstitutions. ix. In our opinion the term loans have been applied for the purpose forwhich they were raised. x. In our opinion Based upon audit procedures performed and theinformation and explanations given by the management we report that no fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe year. xi. In our opinion based upon the audit procedures performed and theinformation and explanations given by the management the managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act. xii. In our opinion the company isnot a Nidhi Company. Therefore the provisions of clause 4(xii) of the Order are notapplicable to the Company. xiii. Based upon the audit procedures performed and accordingto the information and explanations given to us all transactions with the related partiesare in compliance with section 177 and 188 of Companies Act 2013 and the details havebeen disclosed in the financial statements as required by the applicable accountingstandards. xiv. In our opinion based upon the audit procedures performed and theinformation and explanations given by the management the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany.

xv. In our opinion based upon the audit procedures performed and information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected by him.

Accordingly the provisions of clause 3(xv) of the Order are not applicable to theCompany. xvi. In our opinion the company is not required to be registered under section45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause3(xvi) of the Order are not applicable to the Company.

For M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Sd/-
Place : Hyderabad (Jainik M Soni)
Date : 30.05.2017 Partner
Membership No. 149967

Annexure – "B" to the Auditors' Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of M/s.Nettlinx Limited ("the Company") as of 31 March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M/s. DEVA & CO
Chartered Accountants
Firm Reg.No.000722S
Sd/-
Place: Hyderabad (Jainik M Soni)
Date : 30.05.2017 Partner
Membership No. 149967