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Network Ltd.

BSE: 523558 Sector: Others
NSE: NETWORK ISIN Code: INE010C01025
BSE 00:00 | 04 Jun Network Ltd
NSE 05:30 | 01 Jan Network Ltd
OPEN 3.43
PREVIOUS CLOSE 3.43
VOLUME 100
52-Week high 6.26
52-Week low 3.01
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.43
CLOSE 3.43
VOLUME 100
52-Week high 6.26
52-Week low 3.01
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Network Ltd. (NETWORK) - Auditors Report

Company auditors report

TO THE MEMBERS OF NETWORK LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of NETWORK LIMITED("theCompany") which comprise the Balance Sheet as at 31March 2017the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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.

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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor'sjudgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actinthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31March 2017 and its loss and its cash flows 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 in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

2. As required by Section 143 (3) oftheAct 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified 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 ason31March 2017and taken on record by the Board of Directors none of the directors isdisqualified as on 31March 2017 from being appointed as a director in terms of Section164 (2) oftheAct.

(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 Reportin Annexure B.

(a) 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. The company has disclosed the impact of pending litigations on its financialposition in its financial statements - refer note 2.16 to the financial statements;

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8*^ November 2016 to SO^December 2016 on the basis of information available withthe Company. Based on audit procedures and relying on management's representation wereport that disclosures are in accordance with the books of accounts maintained by theCompany and as produced to us by the Management. - Refer Note 2.26.

For and on behalf of S. Kapoor & Associates Chartered Accountants (Registration No.003528M)

Sd/-

Sanjay Kapoor F.C.A. (Proprietor) Membership No.82499

Place: New Delhi Dated: 13-05-2017

ANNEXURE A TO THE INDEPENDENT AUDITORS'

REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and

Regulatory Requirements' section of our report of even date)

i. In respect of its fixed assets:

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

(b) The management had physically verified the fixed assets during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

ii. The Company does not have any inventoryother than Securities andcommodities.Accordingly the provisions of Clause 3 (ii) of the Order are not applicableto the Company.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 185 and 186 of the Companies Act 2013in respect of loans investments guaranties and security.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit during the year. Therefore the provisions of clause3(v) of the Companies (Auditors Report) Order 2016 are not applicable to the Company.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of Section 148 of theCompanies Act 2013 for the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has been generally been regular in depositing undisputed statutorydues including Income-tax Service Tax Cess and other material statutory dues applicableto it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Income-taxService TaxCess and other material statutory duesin arrears as at March 31 2017 for aperiod of more than six months from the date they became payable.

We are informed that the operations of the Company during the year did not give rise toany liability for Employees State Insurance Sales Tax Wealth Tax Custom Duty ExciseDuty and Value Added Tax.

(c) We are informed that there are no dues in respect of Income Tax Service Tax andCess which have not been deposited on account of any dispute.

viii. According to the information and explanations given to us and the recordsexamined by us the Company has not taken any loans from financial institutions and banksnor has it issued any debentures. Accordingly the provisions of clause 3 (viii) of theOrder are not applicable 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. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no material fraud on the Company has been noticed orreported during the year.

xi. According to the information and explanations given to us and the records examinedby us the company has not been paid managerial remuneration during the year. Accordinglythe provisions of clause 3 (xi) of the Order are not applicable to the Company.

xii. In our opinion and According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of clause 3 (xii) of the Orderare not applicable to the Company.

xiii. According to the information and explanations given to us and the recordsexamined by us transactions with the related parties are in compliance with sections 177and 188 of the Act where applicable and details of such transactions have been disclosedin the financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review and therefore the provisions ofclause 3 (xiv) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non - cash transactions with directors or personsconnected with the Directors.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct1934.

For and on behalf of S. Kapoor & Associates Chartered Accountants (Registration No.003528M)

Sd/-

Sanjay Kapoor F.C.A. (Proprietor) Membership No.82499

Place: New Delhi Dated: 13-05-2017

ANNEXURE "B" TO THE INDEPENDENT

AUDITORS' REPORT

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

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ('theCompany') as of 31 March 2017in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date. Management's Responsibility forInternal 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 Accountant of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe internal financial controls system over financial reporting and their 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 the risks ofmaterial misstatement of the financial statements whether due to fraud or 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 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 ofrecords that 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 statementsinaccordance 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 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

In our opinion 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 at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountant of India.

For and on behalf of S. Kapoor & Associates Chartered Accountants (Registration No.003528M)

Sd/-

Sanjay Kapoor F.C.A. (Proprietor) Membership No.82499

Place: New Delhi Dated: 13-05-2017