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Netlink Solutions (India) Ltd.

BSE: 509040 Sector: IT
NSE: N.A. ISIN Code: INE040F01033
BSE 00:00 | 14 Oct 32.45 1.50
(4.85%)
OPEN

31.60

HIGH

32.45

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31.60

NSE 05:30 | 01 Jan Netlink Solutions (India) Ltd
OPEN 31.60
PREVIOUS CLOSE 30.95
VOLUME 4791
52-Week high 32.45
52-Week low 8.20
P/E 4.25
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.60
CLOSE 30.95
VOLUME 4791
52-Week high 32.45
52-Week low 8.20
P/E 4.25
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Netlink Solutions (India) Ltd. (NETLINKSOLNSI) - Auditors Report

Company auditors report

TO THE MEMBERS OF NETLINK SOLUTIONS (INDIA) Limited

Report on the Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS Financial Statements of NetlinkSolutions (India) Limited ("the Company") which comprise the BalanceSheet as at March 31 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of changes in Equity forthe year then ended and notes to financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Ind AS Financial Statements give the informationrequired by the Companies Act 2013 (the ‘Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2020 and itstotal comprehensive income (comprising of profit and other comprehensive income) its cashflow and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditingunder section 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (‘ICAI')together with ethical requirements that are relevant to our audit of financial statementsunder the provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and Code of Ethics. Webelieve that the audit evidence that we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined that there are no key audit matters to becommunicated in our report.

Information other than the Financial Statements and Auditor'sReport thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the financial statements and our auditor's report thereon. Ouropinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements. If based onthe work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance (including other comprehensive income) cash flow and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards specified in the Companies (Indian AccountingStandards) Rules 2015 (as amended) under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; 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 Ind ASFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so. Those Board ofDirectors are also responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether the IndAS Financial Statements as a whole are free from material misstatement whether due tofraud 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Ind AS Financial Statements.

As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also:

? Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

? Obtain an understanding of internal control 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 explaining our 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 thereasonableness of accounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.

? Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Other Matters

Our opinion on the financial statements is not modified in respect ofthe above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2016(the "Order") issued by the Central Government of India in terms of sub-section(11) of Section 143 of the Act ("the Order") and on the basis of examination ofthe books and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure ‘A'statement on the matters specified in the paragraph 3 and 4 of the Order to the extentapplicable.

2. As required by Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanationswhich 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 beenkept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss (including othercomprehensive income) the Cash

Flow Statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

d. In our opinion the aforesaid Ind AS financial statements complywith the Accounting Standards specified under Section 133 of the Act;

e. On the basis of the written representations received from thedirectors as on March 31 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2020 from being appointed as a director in termsof Section 164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the

Company and the operating effectiveness of such controls refers to ourseparate report in Annexure

‘B ';

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act h. With respect to theother matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 (as amended) in our opinion and to thebest of our information and according to the explanations given to us;

i. The Company has disclosed the impact of pending litigation as atMarch 31 2020 on its financial position in its Ind AS financial statements – ReferNote 25

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to theInvestor Education and

Protection Fund by the Company during the year ended March 31 2020.

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B . P . MANTRI
Partner
M. No. 045701
Place : Mumbai UDIN : 20045701AAAABY1734
Date: 25th June 2020

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's Report to themembers of the Company on the Ind AS financial statements for the year ended 31stMarch 2020 we report that:

i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets;

(b) As explained to us the company has a regular programme of physicalverification of its fixed assets by which all the fixed assets are verified in a phasedmanner over a period of three years. In our opinion this periodicity of the physicalverification is reasonable having regard to the size of the Company and nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the company.

ii. The company is engaged in the business of web designing Printmedia exhibition and investment in equity shares. The equity shares have been kept indemat form. The Company does not hold any physical inventories hence this clause of theorder is not applicable.

iii. As per the information and explanations given to us the companyhas not granted any loans secured or unsecured to the companies firms Limited Liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 hence clause no. iii(a) iii(b) and iii(c) of the order are notapplicable to the Company.

iv. In our opinion and according to the information and explanationsgiven to us there are no loans to directors including entities in which they areinterested in respect of which the provisions of section 185 of the Companies Act 2013are applicable and hence not commented upon. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsection 186 of the Companies Act 2013 in respect of investments made.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits in terms of directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under.

vi. According to the information and explanations given to us themaintenance of cost records has not been specified by the Central Government under Section148(1) of the Companies Act 2013.

vii. (a) According to the information and explanations given to us thecompany is generally regular in depositing undisputed statutory dues including providentfund employees' state insurance income - tax Goods and service tax and any otherstatutory dues where ever applicable with the appropriate authorities. There are noundisputed statutory dues which are in arrears as at 31st

March 2020 for a period of more than six months from the date theybecame payable

(b) According to the information and explanations given to us thecompany had received order from the income tax department for A Y 2015-16 determining thedemand of Rs 3569460 in earlier year. The company had deposited 725000/ against the saiddemand under protest and filed the appeal before the Commissioner of Income tax (Appeals).The company received order from Commissioner of Income tax (Appeals) wherein appeal isallowed partly. The Company had also filed appeal before the ITAT against the CIT(Appeals) order. However the company had not received rectification order from the incometax officer for giving the effect of CIT (Appeals) order which will resulted into the nilincome tax demand .

viii. The company has not taken any loan from financial institutionbank Government or there are no due to debenture holders hence the clause viii of theorder is not applicable to the company.

ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.

x. According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

xi. According to the information and explanations give to us themanagerial remuneration has been paid for provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

xiii. According to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe Ind AS financial statements as required by the applicable accounting standards.

xiv. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewtherefore clause (xiv) of the order is not applicable.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly clause(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B . P . MANTRI
Partner
M. No. 045701
Place : Mumbai UDIN : 20045701AAAABY1734
Date: 25th June 2020

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (g) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls over financial reportingunder clause (i) of sub section 3 of section 143 of the Companies Act 2013 (‘theAct')

We have audited the internal financial controls over financialreporting of Netlink Solutions (India) Limited (‘the company') as of 31stMarch 2020 in conjunction with our audit of the Ind AS financial statements of the companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Charted Accountants of India(‘ICAI'). These Responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the ‘Guidance Note') and the standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of internal financial controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and thereoperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment ofrisks of material misstatement of the Ind AS financial statements whether due to fraudand error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the financial statements for external purposes inaccordance with generally accepted accounting principles.

A company's internal financial controls over financial reportingthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of the management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatement due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of change in conditions orthat the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanation given to us 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 of March 31 2020 based on internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B . P . MANTRI
Partner
M. No. 045701
Place : Mumbai UDIN : 20045701AAAABY1734
Date: 25th June 2020

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