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Neueon Towers Ltd.

BSE: 532887 Sector: Infrastructure
NSE: NTL ISIN Code: INE333I01036
BSE 00:00 | 20 Jun 2.50 0
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2.68

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2.46

NSE 00:00 | 21 Jun 2.55 0.05
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2.55

HIGH

2.55

LOW

2.55

OPEN 2.68
PREVIOUS CLOSE 2.50
VOLUME 3274
52-Week high 7.14
52-Week low 2.17
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.68
CLOSE 2.50
VOLUME 3274
52-Week high 7.14
52-Week low 2.17
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Neueon Towers Ltd. (NTL) - Auditors Report

Company auditors report

To

The Members

Neueon Towers Limited.

Report on the Standalone Financial Statements

We have audited the accompanying standalone Ind AS financial statements of NeueonTowers Limited (‘the Company') which comprise the balance sheet as at 31 March2017 the statement of profit and loss (including other comprehensive income) thestatement of cash flows and the statement of changes in equity for the year then ended anda summary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone Ind AS financial statements").

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Ind AS 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 including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder. 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 Standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit.

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 there under.

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 Standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true 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 Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of thefinancial position of the Company as at 31 March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear 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 sub-section (11) of section 143 ofthe Act we give in the Annexure A to this report a statement on the matters specified inthe 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c) the balance sheet the statement of profit and loss thestatement of cash flows and the statement of changes in equity dealt with by this Reportare in agreement with the books of account; d) In our opinion the aforesaid StandaloneInd AS financial statements comply with the Accounting Standards specified under Section133 of the Act read with relevant rules issued thereunder; e) on the basis of the writtenrepresentations received from the directors as on 31 March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2017 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"Annexure B"; and g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS financial statements – Refer Note No.vii(b); ii. The company did not have any long term contracts including derivativecontracts for which there were any material foreseeable losses; iii. There were noamounts required to be transferred to the Investor Education and Protection Fund by theCompany. iv. The Company had provided requisite disclosures in its financial statements asto holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the company. Refer Note No. 20 to the Standalone Ind AS financialStatements.

For VENUGOPAL & CHENOY
Chartered Accountants
FRN: 004671S
(P.V. SRI HARI)
Place: Hyderabad Partner
Date: 30-05-2017 Membership No.021961

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure A referred to in our Independent Auditor's Report to the members of theCompany on the standalone financial statements for the year ended March 31 2017 wereport that: i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable having regardto the size of the Company and nature of its assets. No material discrepancies have beennoticed on such physical 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) a) The inventories have been physically verified bythe management during the year. In our opinion the frequency of such verification isreasonable. b) The procedures of physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business. c) The Company has maintained proper records of the said stocks.As explained to us there were no material discrepancies noticed on physical verificationof inventory as compared to the book records. iii) The Company has granted a loanaggregating to Rs 1114.79 lakhs a company covered under the register maintained undersection 189 of The Act. . The rate of interest and other terms and conditions are primafacie not prejudicial to the interests of the company. iv) In our opinion and according tothe information and explanations given to us the Company has complied with the provisionsof section 185 and 186 of the Act with respect to the loans and investments made. v) TheCompany has not accepted any deposits within the meaning of provisions of sections 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under sub–section (1) of Section 148of the Act in respect of the activities carried on by the Company wherever applicable andwe are of the opinion that prima facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the records vii) (a)According to the information and explanations given to us and on the basis of examinationof the records of the Company amounts deducted/ accrued in the books of account inrespect of undisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities.

According to the information and explanations given to us no undisputed amounts arepayable in respect of income tax sales tax service tax duty of customs duty of excisevalue added tax or cess and other material statutory dues were in arrears as at 31 March2017 for a period of more than six months from the date they became payable except: Rs. InLakhs

Income Tax (2009-2010) 151.14
Income Tax (2010-2011) 2688.45
Income Tax (2011-2012) 2447.15
Income Tax (2012-2013) 129.69
Income Tax (2013-2014) 102.20

(b) According to information and explanations given to us the following dues (amounts)have not been deposited by the Company on account of disputes/assessment:

Name of the Statute (Nature of the Dues) Period to which the amount relates Forum where matter is pending Amount
Excise Department:
Excise Duty on Job Work 2010-2011 Additional Commissioner of central Excise Rs. 30.98 lacs (paid Rs.15.49 lacs during the year 2010-2011
Sales Tax Department:
Submission of C Forms 2011-2012 Appellate Deputy Commissioner Rs. 72.02 lacs
Submission of C Forms 2012-2013 Appellate Deputy Commissioner Rs. 8.27 lacs

viii) According to the information and explanations given to us and on the basis ofexamination of the records the company has not defaulted in the repayment of loans alongwith interest to the Banks/ financial institutions. ix) The Company did not raise anymoney from public during the year. x) According to the information and explanations givento us no material fraud by the company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit. xi) According to the informationand explanations give to us and based on our examination of the records of the Companythe Company has not paid managerial remuneration to its Managing Director. xii) In ouropinion and according to the information and explanations given to us the Company is nota nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable. xiii)According to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards. xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares and has complied with Section 42 of the CompaniesAct 2013 and has used the money for the purposes for which it is raised. xv) Accordingto the information and explanations given to us and based on our examination of therecords of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable. xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For VENUGOPAL & CHENOY
Chartered Accountants
FRN: 004671S
(P.V. SRI HARI )
Place: Hyderabad Partner
Date: 30.05.2017 Membership No. 021961

ANNEXURE - B TO THE AUDITORS' REPORT

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 NEUEONTOWERS LIMITED ("the Company") as of 31 March 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended 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 Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 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 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 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.

The Company needs to document procedures and controls vis--vis internal controls overFinancial Reporting.

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 CharteredAccountants of India.

For VENUGOPAL & CHENOY
Chartered Accountants
FRN: 004671S
(P.V. SRI HARI )
Place: Hyderabad Partner
Date: 30.05.2017 Membership No. 021961