You are here » Home » Companies » Company Overview » Netlink Solutions (India) Ltd

Netlink Solutions (India) Ltd.

BSE: 509040 Sector: IT
NSE: N.A. ISIN Code: INE040F01033
BSE 11:44 | 18 Feb 18.00 0
(0.00%)
OPEN

18.00

HIGH

18.00

LOW

18.00

NSE 05:30 | 01 Jan Netlink Solutions (India) Ltd
OPEN 18.00
PREVIOUS CLOSE 18.00
VOLUME 2
52-Week high 18.15
52-Week low 6.66
P/E
Mkt Cap.(Rs cr) 5
Buy Price 15.70
Buy Qty 1.00
Sell Price 18.00
Sell Qty 561.00
OPEN 18.00
CLOSE 18.00
VOLUME 2
52-Week high 18.15
52-Week low 6.66
P/E
Mkt Cap.(Rs cr) 5
Buy Price 15.70
Buy Qty 1.00
Sell Price 18.00
Sell Qty 561.00

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

Company auditors report

ON THE IND AS FINANCIAL STATEMENTS

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 Netlink Solutions(India) Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2019 the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of changes in Equity for the year then ended andnotes to financial statements including a summary of significant accounting policies andother explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 (the ‘Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and its totalcomprehensive income (comprising of profit and other comprehensive income) its cash flowand the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing under section143(10) of the Act. Our responsibilities under those standards are further described inthe Auditor's Responsibilities for the Audit of Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (‘ICAI') together with ethicalrequirements that are relevant to our audit of financial statements under the provisionsof the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and Code of Ethics. We believe thatthe audit evidence that we have obtained is sufficient and appropriate to provide a basisfor our opinion.

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.

We have determined that there are no key audit matters to be communicated in ourreport.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon. Our opinion on the financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS 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 Ind AS Financial Statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) cash flow and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified in the Companies (Indian Accounting Standards) Rules 2015(as amended) under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of 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 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 is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so. Those Board of Directors are also responsiblefor overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS Financial Statements.

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

• Identify and assess the risks 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 for 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for explaining our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof 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. If we 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.

Other Matters

Our opinion on the financial statements is not modified in respect of the 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 ofthe Act ("the Order") and on the basis of examination of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure ‘A' statement on the mattersspecified in the 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 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 Balance Sheet Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act;

e. On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312019 from being appointed as a director in terms of Section 164 (2) of theAct;

f. With respect to the adequacy of the internal financial controls over financialreporting 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 the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended)in our opinion and to the best of our information and according to the explanations givento us;

i. The Company has disclosed the impact of pending litigation as at March 31 2019 onits financial position in its Ind AS financial statements - Refer Note 25.

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2019.

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B.P. MANTRI
Place: Mumbai Partner
Date: 30th May 2019 M. No.045701

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the Ind AS financial statements for the year ended 31st March 2019 wereport that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us the company has a regular programme of physical verification ofits fixed assets by which all the fixed assets are verified in a phased manner over aperiod of three years. In our opinion this periodicity of the physical verification isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

ii. The company is engaged in the business of web designing Print media exhibitionand investment in equity shares. The equity shares have been kept in demat form. TheCompany does not hold any physical inventories hence this clause of the order is notapplicable.

iii. As per the information and explanations given to us the company has not grantedany loans secured or unsecured to the companies firms Limited Liability partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013 hence clause no. iii(a) iii(b) and iii(c) of the order are not applicable to theCompany.

iv. In our opinion and according to the information and explanations given to us thereare no loans to directors including entities in which they are interested in respect ofwhich the provisions of section 185 of the Companies Act 2013 are applicable and hencenot commented upon. In our opinion and according to the information and explanations givento us the Company has complied with the provisions of section 186 of the Companies Act2013 in respect of investments made.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits in terms of directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under.

vi. According to the information and explanations given to us the maintenance of costrecords has not been specified by the Central Government under Section 148(1) of theCompanies Act 2013.

vii. (a) According to the information and explanations given to us the company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance income - tax Goods and service tax and any other statutorydues where ever applicable with the appropriate authorities. There are no undisputedstatutory dues which are in arrears as at 31st March 2019 for a period of more than sixmonths from the date they became payable

(b) According to the information and explanations given to us the company had receivedorder from the income tax department for A Y 2015-16 determining the demand of Rs 3569460in earlier year. The company had deposited 725000/- against the said demand under protestand filed the appeal before the Commissioner of Income tax (Appeals). The company receivedorder from Commissioner of Income tax (Appeals) wherein appeal is allowed partly. TheCompany had also filed appeal before the ITAT against the CIT (Appeals) order. However thecompany had not received rectification order from the income tax officer for giving theeffect of CIT (Appeals) order which will resulted into the nil income tax demand.

viii. The company has not taken any loan from financial institution bank Governmentor there are no due to debenture holders hence the clause viii of the order is notapplicable to the company.

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

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi. According to the information and explanations give to us the managerialremuneration has been paid for provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with schedule V to the Companies Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the Ind AS financialstatements as required by the applicable accounting standards.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review therefore clause(xiv) of the order is not applicable.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause (xv) of theOrder is not applicable.

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

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B.P. MANTRI
Place: Mumbai Partner
Date: 30th May 2019 M. No.045701

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

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

Report on the Internal Financial Controls over financial reporting under clause (i) ofsub section 3 of section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of NetlinkSolutions (India) Limited ('the company') as of 31st March 2019 inconjunction with our audit of the Ind AS financial statements of the company for the yearended on that 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 Charted 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 the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records the timely preparation of reliable financial information as requiredunder the Companies Act 2013.

Auditor's 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of internal financialcontrols and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 there 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 risks of materialmisstatement of the Ind AS financial statements whether due to fraud and 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 the financial statements for external purposes in accordance with generallyaccepted accounting principles.

A company's internal financial controls over financial reporting those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately 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 authorizations of the management and directors of the company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of change in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of March 31 2019 based on internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Jhawar Mantri & Associates
Chartered Accountants
(Firm Registration No.113221W)
B.P. MANTRI
Place: Mumbai Partner
Date: 30th May 2019 M. No.045701