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iStreet Network Ltd.

BSE: 524622 Sector: Others
NSE: N.A. ISIN Code: INE532B01020
BSE 12:41 | 24 Sep 1.70 -0.08
(-4.49%)
OPEN

1.86

HIGH

1.86

LOW

1.70

NSE 05:30 | 01 Jan iStreet Network Ltd
OPEN 1.86
PREVIOUS CLOSE 1.78
VOLUME 3319
52-Week high 2.94
52-Week low 1.01
P/E
Mkt Cap.(Rs cr) 4
Buy Price 1.70
Buy Qty 3100.00
Sell Price 1.85
Sell Qty 2000.00
OPEN 1.86
CLOSE 1.78
VOLUME 3319
52-Week high 2.94
52-Week low 1.01
P/E
Mkt Cap.(Rs cr) 4
Buy Price 1.70
Buy Qty 3100.00
Sell Price 1.85
Sell Qty 2000.00

iStreet Network Ltd. (ISTREETNETWORK) - Auditors Report

Company auditors report

To the Members of iStreet Network Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of iStreet Network Limited("theCompany") which comprise the Balance Sheet as at 31stMarch 2019 theStatement of Profit and Loss (including other Comprehensive Income) the Statement ofChanges in Equity) and the Statement of Cash Flows for the year ended on that date andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the FinancialStatements").In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the India Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind As") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019the loss and total comprehensive income changes in equityand its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (CAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Actand the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics issued by the ICAI. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the following matter to be the Key audit matter to be communicated in ourReport.

Key Audit Matter Auditor's Response
As disclosed in Note No. 24in March 2017 the Company had been classified into the Graded Surveillance Measure (GSM - Stage 1 of GSM List) list by BSE. The criteria for classifying the Company into GSM was not very clear to the Company. Consequent to its classifying into GSM and its restriction of free tradability of its shares the Company was unable to raise fresh capital for the business and hence suspended its operation with effect from 1st April 2017. The Company has invested huge resources in developing technology infrastructure marketing promotions in the last three years in order to expand its retail network and customer base. Also based on explanations given the business model requires continuous investments till it reaches the break-even point and turns profitable. The impact of classifying the Company in GSM by BSE has led to trade restrictions and a complete roadblock in terms of raising additional capital from new investors. The Company has been incurring constant losses and also the net worth of the Company has been fully eroded. If the management is not able to infuse adequate money on appropriate time than the going concern assumption might get impacted. However the Audited financial results of the Company are prepared on going concern basis. The Company is also implementing its new business strategy with a focus on profitability with the available internal resources and is in the process of acquiring Citicycle India Pvt. Ltd. which provides solution for mobility.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsOur responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total Comprehensive Income changes in equityand cash flows of the Company inaccordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of 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; 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 financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements. As a part of an audit in accordance with the SAs weexercise professional judgment and maintain professional scepticism throughout the Audit.

We also:

• Identify and assess the risk of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis of our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing an opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. Ifwe conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters.

We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

Corresponding figures for the year ended 31st March 2018 have been auditedby another auditor who expressed an unmodified opinion dated 29th May 2018 onthe financial statements of the Company for the year ended 31st March 2018. Ouropinion is not modified in respect of this matter.

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 subsection (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraphs 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 including other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of accounts.

d) In our opinion the aforesaid standalone financial statements comply with the Ind Asspecified 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 31stMarch2019 taken on record by the Board of Directors none of the Directors is disqualified ason 31stMarch 2019 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 financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(6) of the Act as amended Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i.The Company has disclosed the impact of pending litigations on its financial positionin its financial statements.

ii.The Company does not have long-term contracts including derivative contractsrequiring provision for material foreseeable losses. iii.There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For S M M P & Associates
Chartered Accountants
Firm Registration No. 120438W
Chintan Shah
Partner
Membership No. - 166729
Mumbai dated 29th May 2019

Annexure to the Auditors' Report

(Referred to in Paragraph 1 under the head "Report on Other Legal and RegulatoryRequirements" of our report of even date on the Financial Statements for the yearended on March 31 2019 of iStreet Network Limited)

In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under:

(i) Fixed Assets

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed assets are verified over a period of one year. As explained to us therewere no discrepancies on such physically verification carried out by the management. Inour opinion the periodicity of physical verification is reasonable having regards to thesize of the Company and the nature of its assets.

c) As explained to us there are no immovable properties comprising of Building whichwere held in the name of the Company during the year.

(ii) The Company did not have any Inventory during the year except for a batch ofgoods which were purchase and sold on the same day.

(iii) According to the information and explanations given to us and on the basis ofrecords verified by us during the year the Company has not granted any loans secured orunsecured to any Companies firm and other parties covered in the register maintainedunder Section 189 of the Companies Act 2013. Thus the provisions of Clause 3(iii) (a)(b) and (c) of the order are not applicable to the Company.

(iv) Based on the information and explanations given to us and on the basis of recordsverified by us the Company has complied with the provisions of Section 185 and 186 of theAct to the extent applicable with respect to the loans given investments made guaranteesand securities given.

(v) According to the information and explanations given to us the Company has notaccepted deposits as per the directives issued by Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Act and the rules framedthere under.

(vi) As explained to us maintenance of cost records has not been prescribed by theCentral Government for the Company under Section 148(1) of the Act for the goods andservices dealt in by the Company.

vii) As per the records verified by us and according to the information andexplanations given to us the Company is generally regular in depositing undisputedstatutory dues with the appropriate authorities during the year and there were no amountsrepresenting outstanding balances for more than six months as on the Balance Sheet dateexcept in case of Provident Fund Profession Tax Tax deducted at Source Value Added Taxand Service Tax. As explained to us the statutes pertaining to ESIC Customs Duty andCess are not applicable to the Company during the year under review.

As explained to us and as per the records verified by us the below mentionedundisputed amounts payable in respect of Provident Fund Income Tax Sales Tax ValueAdded Tax Service Tax Cess and other material statutory dues were in arrears as at 31stMarch 2019 for a period of more than 6 months from the date they became payable.

Particulars Amount (Rs.)
Tax Deducted at Source 194558
Value Added Tax 111857
Profession Tax 2200

According to the information and explanation given us and as per the records verifiedby us the Company does not have disputed statutory liability during the year under reviewin respect of Provident Fund Income Tax Sales Tax Value Added Tax Service Tax Cessand other material Statutory dues.

viii) As per the records verified by us the Company has not availed of any securedloan from any banks or financial institution in the previous year. Further the Companyhas not issued any debentures during the year under review.

ix) The Company has not raised any money during the year through initial / furtherpublic offer (including debt instruments) as well as any Term Loans. Accordinglyparagraph 3(ix) is not applicable to the Company.

x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company or its officers noticed or reported during theyear nor have we been informed of such case by the management.

xi) According to the information and explanations given to us and as per the recordsthe Company has not paid or provided for any managerial remuneration to the ManagingDirector for the year in accordance with the requisite approvals mandated by theprovisions of Section 197 of the Act read with Schedule V to the Act in view of the waiverletter received from the Managing Director.

xii) The Company is not a Nidhi company during the year under review and hence thecriteria as stipulated under Nidhi Rules 2014 are not applicable to the Company.

xiii) As per the information and explanations given during the course of ourverification in our opinion all transactions with the related parties made by theCompany were in compliance with Sections 177 and 188 of the Act to the extent applicableto the Company during the year. The relevant details in respect of the same have beenappropriately disclosed in the Ind AS Financial Statements as per the requirements of theAccounting Standard- 18.

xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures and hence the requirements of Section 42 ofthe Act are not applicable.

xv) As per the information and explanations provided to us during the year theCompany has not entered into any non-cash transactions with directors or persons connectedwith the directors within the purview of Section 192 of the Act.

xvi) As per the information and explanations provided to us and based on the overalloperations of the Company the Company is not required to obtain registration underSection 45-IA of the Reserve Bank of India Act 1934.

For S M M P & Associates
Chartered Accountants
Firm Registration No. 120438W
Chintan Shah
Partner
Membership No. 166729
Mumbai dated 29th May 2019

Annexure B to the Auditor's Report of even date on the Ind AS financial statement ofiStreet Network Limited Report on the Internal Financial Controls under Section 143(3)(i)of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of iStreetNetwork Limited ("the Company") as of 31st March 2019 inconjunction with our audit of the Ind AS financial statements of the Company comprising ofthe Balance Sheet as at March 31st2019 the Statement of Profit and Lossincluding Comprehensive Income Statement of Changes in Equity and Cash Flow Statement forthe period then ended.

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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 Reportingand the Standards on Auditing issued by the ICAI deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI. Those standards and the Guidance Note 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 :

According to the information and explanations given to us the Company hasin allmaterial respects established an adequate internal financial controls system overfinancial reporting on criteria based on or considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Control overFinancial Reporting issued by the Institute of Chartered Accountants of India. Suchinternal financial controls over financial reporting were operating effectively as atMarch 31st 2019.

For S M M P & Associates
Chartered Accountants
Firm Registration No. 120438W
Chintan Shah
Partner
Membership No. 166729
Mumbai 29th May 2019

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