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Nettlinx Ltd.

BSE: 511658 Sector: Telecom
NSE: N.A. ISIN Code: INE027D01019
BSE 00:00 | 20 Feb 27.90 -0.85
(-2.96%)
OPEN

28.00

HIGH

28.50

LOW

26.75

NSE 05:30 | 01 Jan Nettlinx Ltd
OPEN 28.00
PREVIOUS CLOSE 28.75
VOLUME 6354
52-Week high 52.00
52-Week low 16.15
P/E 10.41
Mkt Cap.(Rs cr) 32
Buy Price 27.90
Buy Qty 10.00
Sell Price 28.00
Sell Qty 25.00
OPEN 28.00
CLOSE 28.75
VOLUME 6354
52-Week high 52.00
52-Week low 16.15
P/E 10.41
Mkt Cap.(Rs cr) 32
Buy Price 27.90
Buy Qty 10.00
Sell Price 28.00
Sell Qty 25.00

Nettlinx Ltd. (NETTLINX) - Auditors Report

Company auditors report

To

The Members of M/s NETTLINX LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s.NETTLINX LIMITED (‘the Company') which comprise the balance sheet as at March31 2018 the statement of profit and loss (including other comprehensive income) thestatement of cash flows and the statement of changes in equity for the year ended and asummary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone financial statements").

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India prescribed under Section 133 of the Act read with relevantrules issued thereunder. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalonefinancial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances.

An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

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 Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the financialposition of the Company as at 31 March 2018 and its profit its cash flows and thechanges in equity 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 section143(11) of the Act we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the order.

2. As required by Section 143(3) of the Act we report that: (a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of accounts required by law have beenkept by the Company so far as it appears from our examination of those books;

(c) The balance sheet the statement of profit and loss the statementof cash flows and the statement of changes in equity dealt with by this Report are inagreement with the books of account; (d) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with relevant rule issued thereunder; (e) on the basis of the writtenrepresentations received from the directors as on March 31 2018 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2018 from beingappointed as a director in terms of Section 164 (2) of the Act; (f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in "AnnexureB"; and (g) with respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements. Refer Note 26. ii) There is norequirement for any provision as required by any act or Accounting standards for materialfor foreseeable losses if any on long term contracts including derivative contracts. iii)There are no amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For C Ramachandram & Co.

Chartered Accountants Firm Registration No. 002864S

Sd/-Premnath Degala

Partner M.No: 207133

Place: Hyderabad Date: 29.05.2018

Annexure A to the Auditors' Report

Annexure referred to in paragraph under ‘Report on Other Legal andRegulatory Requirements' section of our report of the Independent Auditors' Report of evendate of NETTLINX LIMITED on the standalone financial statements for the year ended March31 2018 i. In terms of the information and explanations sought by us and given by thecompany and the books and records examined by us in the normal course of audit and to thebest of our knowledge and belief we state the following: a) The Company is generallymaintaining proper records showing full particulars including quantitative details andsituation for all fixed assets. b) The company generally have regular programme ofphysical verification of fixed assets by which fixed assets were verified in a phasedmanner over a period of three years.

B. c) According to information and explanation given to us title deedsof immovable Properties are held in the name of the company. ii. The company has noinventory thus paragraph 3(ii) of the Order is not applicable to the company. iii. Thecompany has granted loans secured or unsecured to Companies Firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Thus paragraph 3(iii) of the Order is applicable to the company.However the company has given advances to the companies firms other parties covered inthe register maintained under section 189 of the Act and in our opinion and to the bestof our examination the terms are not prejudicial to the interests of the company. iv. TheCompany has not made any transactions in the nature of loans investments guarantees andsecurity where provisions of section 185 and 186 of the Companies Act 2013 areapplicable. Thus paragraph 3(iv) of the Order is not applicable to the Company.

v. The company has not accepted any deposits within the meaning ofprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under. Thus paragraph 3(v) of the Order is not applicableto the company. vi. According to information and explanation given to us the CentralGovernment has not prescribed maintenance of cost records as per section 148 of Companiesact 2013. vii. a) The Company is generally regular in depositing undisputed statutorydues including Provident fund Employees' State Insurance Income-tax Sales Tax ServiceTax Customs Duty Value Added Tax GST Cess and other material statutory dues applicableto it to the appropriate authorities. b) As per the information given by the companygenerally there are no material dues of duty of customs income tax sales tax duty ofexcise service tax which have not been deposited with the appropriate authorities onaccount of any dispute as on March 31 2018. viii. In our opinion and according toinformation and explanations given to us the company has not defaulted in payment of duesto Banks Government Financial Institutions as on date of Balance Sheet. ix. The companyhas not raised any moneys by way of initial public offer or further public offer(including debt instruments) during the reporting period.

According to information provided to us term loans availed during thereporting period was applied for the purposes for which those were raised. x. According tothe information and explanations given to us no material fraud by the company or on thecompany by its officers or employees has been noticed or reported during the course of ouraudit. xi. According to information and explanation given to us the company has providedmanagerial remuneration in accordance with Section 197 read with schedule V to theCompanies Act 2013. xii. In our opinion the company is not a Nidhi Company.

Accordingly paragraph 3(xii) of the Order is not applicable for thecompany.

xiii. In our opinion and according to information and explanationsgiven to us all transactions with the related parties are in compliance with Sections 177and 188 of Companies Act 2013 and the details of such transactions have been disclosed inthe Financial statements of the company as required by applicable Accounting Standards.xiv. According to information and explanation given to us the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. xv. According to information and explanation given to us thecompany has not entered into non-cash transactions with directors or any persons connectedwith him. Thus paragraph 3(xv) of the Order is not applicable to the company.

In our opinion the company is not required to be registered undersection 45IA of Reserve Bank of India Act 1934. Thus paragraph 3(xv) of the Order is notapplicable to the company.

For C Ramachandram & Co.

Chartered Accountants Firm Registration No. 002864S

Sd/-

Premnath Degala

Partner M.No: 207133

Place: Hyderabad Date: 29.05.2018

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of M/S NETTLINX LIMITED ("the Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 Chartered Accountants of India(‘ICAI').These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating 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 of therisks of material misstatement of the standalone financial statements whether due tofraud or 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 internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.

A company's internal financial control over financial reportingincludes those policies and procedures that (1) Pertain to the maintenance of recordsthat 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements 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 changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For C Ramachandram & Co.

Chartered Accountants Firm Registration No. 002864S

Sd/-

Premnath Degala

Partner M.No: 207133

Place: Hyderabad Date: 29.05.2018