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Network 18 Media & Investments Ltd.

BSE: 532798 Sector: Others
NSE: NETWORK18 ISIN Code: INE870H01013
BSE LIVE 15:40 | 22 Sep 47.25 -1.70
(-3.47%)
OPEN

49.00

HIGH

49.00

LOW

47.10

NSE 15:57 | 22 Sep 47.35 -1.60
(-3.27%)
OPEN

48.50

HIGH

48.75

LOW

47.10

OPEN 49.00
PREVIOUS CLOSE 48.95
VOLUME 122328
52-Week high 59.25
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 4,947
Buy Price 47.30
Buy Qty 25.00
Sell Price 0.00
Sell Qty 0.00
OPEN 49.00
CLOSE 48.95
VOLUME 122328
52-Week high 59.25
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 4,947
Buy Price 47.30
Buy Qty 25.00
Sell Price 0.00
Sell Qty 0.00

Network 18 Media & Investments Ltd. (NETWORK18) - Auditors Report

Company auditors report

To the Members of Network18 Media & Investments Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Network18 Media& Investments Limited (the Rs Company Rs ) which comprise the Balance Sheet as at 31March 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management 's Responsibility for the Standalone Financial Statements

2. The Company 's Board of Directors is responsible for the matters stated in Section134(5) of the Companies 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 hows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act; safeguarding the assets of the Company;preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate 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.

Auditor 's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit

evidence about the amounts and the disclosures in the financial statements. Theprocedures selected depend on the auditor 's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company 's preparation of the financial statements that give a true andfair 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 andthe reasonableness of the accounting estimates made by the Company 's Directors as wellas evaluating the overall presentation of the financial statements.

7. 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.

Opinion

8. I n 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 of the state of affairs of the Companyas at 31 March 2016 its loss and its cash hows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor 's Report) Order 2016 (the Rs Order Rs )issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. 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 purpose 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 standalone financial statements dealt with by this report are in agreement withthe 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 (as amended);

e. on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2016 from being appointed as a director in terms of Section 164(2) of the Act;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 20 April 2016 as per Annexure II expressed unmodified opinion; and

g. with respect to the other matters to be included in the Auditor 's 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. as detailed in Note 34 to the standalone financial statements the Company hasdisclosed the impact of

pending litigations on its standalone financial position;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Walker Chandiok & Co LLP

(formerly Walker Chandiok & Co)

Chartered Accountants

Firm 's Registration No.: 001076N/N500013

per B P Singh

Partner

Membership No.: 70116

Place : Noida

Date : 20 April 2016

Annexure I

To the Independent Auditor 's Report of even date to the members of Network18 Media& Investments Limited on the Financial Statements for the year ended 31 March 2016

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

(i) (a) The Company has maintained proper records showing full

particulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) The title deeds of all the immovable properties are held in the name of theCompany.

(ii) The entire inventory of the Company is lying with third parties for which writtenconfirmations have been obtained by the management as at the year-end.

(iii) The Company has not granted any loan secured or unsecured to

companies firms Limited Liability Partnerships or other parties covered in theregister maintained under Section 189 of the Act. Accordingly the provisions of clauses3(iii)(a) 3(iii)(b) and 3(iii) (c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of sections 185 and186 of the Act in respect of loans investments guarantees and security.

(v) I n our opinion the Company has complied with the directives issued by the ReserveBank of India the provisions of Sections 73 to 76 and other relevant provisions of theAct and the Companies (Acceptance of Deposits) Rules 2014 (as amended) as applicablewith regard to the deposits accepted. According to the information and explanations givento us no order has been passed by the Company Law Board or National Company Law Tribunalor Reserve Bank of India or any Court or any other Tribunal in this regard.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company 's products and servicesand are of the opinion that prima facie the prescribed

accounts and records have been made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) Undisputed statutory dues including provident fund

employees Rs state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material statutory dues as applicable havegenerally been regularly deposited to the appropriate authorities though there has been aslight delay in a few cases. Further no undisputed amounts payable in respect thereofwere outstanding at the year-end for a period of more than six months from the date theybecame payable.

(b) There are no dues in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax that have not been deposited with theappropriate authorities on account of any dispute.

(viii) The Company has not defaulted in repayment of loans or borrowings to any bankduring the year. The Company has no loans or borrowings payable to a financial institutionor government and no dues payable to debentures holders during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) In our opinion the provisions of section 197 of the Act read with Schedule V tothe Act is not applicable to the Company as

the Company does not pay any remuneration to the directors. Accordingly the provisionsof clause 3(xi) of the Order are not applicable.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

(formerly Walker Chandiok & Co)

Chartered Accountants

Firm 's Registration No.: 001076N/N500013

per B P Singh

Partner

Membership No.: 70116

Place : Noida

Date : 20 April 2016

Annexure II

To the Independent Auditor 's Report of even date to the members of Network18 Media& Investments Limited on the Standalone Financial Statements for the year ended 31March 2016

Independent Auditor 's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the ' Act ' )

1. In conjunction with our audit of the standalone financial statements of Network18Media & Investments Limited (the Rs Company Rs ) as of and for the year ended 31 March2016 we have audited the internal financial controls over financial reporting (IFCoFR) ofthe Company of as of that date.

Management 's Responsibility for Internal Financial Controls

2. The Company 's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the Rs Guidance Note Rs ) issued

by the Institute of Chartered Accountants of India ( Rs ICAI Rs ). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the Company 's business including adherence to Company 's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company 's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing ( Rs standardsRs ) issued by the ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of IFCoFR and the Guidance Note issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate IFCoFRwere established and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor 's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company 's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company 's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company's IFCoFR includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail

accurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company 's assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP

(formerly Walker Chandiok & Co)

Chartered Accountants

Firm 's Registration No.: 001076N/N500013

per B P Singh

Partner

Membership No.: 70116

Place : Noida

Date : 20 April 2016