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Nu Tek India Ltd.

BSE: 533015 Sector: Telecom
NSE: NUTEK ISIN Code: INE318J01027
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OPEN 0.44
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VOLUME 5790
52-Week high 2.48
52-Week low 0.35
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.44
CLOSE 0.48
VOLUME 5790
52-Week high 2.48
52-Week low 0.35
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nu Tek India Ltd. (NUTEK) - Auditors Report

Company auditors report

To the Members of Nu Tek India Limited Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Nu Tek IndiaLimited (‘the Company') which comprise the balance sheet as at March 31 2017 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased 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 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's judgment 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 theCompany's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Opinion

Subject to the qualification given below In our opinion and to the best of ourinformation and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March312017 and its lossand its cash flows for the year ended on that date. We report that-

(1) The audit of the accounts of the branch Kenya & Nepal of the company done byanother auditor has not been received by us. The financial of the branch have beencompiled on the basis of accounts approved and produced by the management.

Emphasis of Matter

Without qualifying our report we draw your attention to the following matters:

Rs.
(1) Provision for Doubtful Debts 41656264/-
(Refer to Notes attached to Financial Statements)
(2) Liquidity Damage 460419/-
(Refer to Notes attached to Financial Statements)

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 a statement on the matters specified in the paragraph3 and 4 of the order.

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 purposes of our audit. (b) in ouropinion proper books of account as required by law have been kept by the Company so far asit 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; (e) on the basis of the written representations receivedfrom the directors as on March 31 2016 taken on record by the Board of Directors noneof the directors is disqualified as on March 31 2016 from being appointed as a directorin terms of Section 164 (2) of the Act;

(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 report in "Annexure B"; and (g) with respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The company have disclose the Impact of pendingLitigation on its financial position in its financial statement Refer to Notes attached toFinancial Statements. ii. the Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For Suman Jeet Agarwal & Co.

Chartered Accountants

Firm's Registration Number: 011945N

Ankush Kumar

Partner

Membership Number: 531341

Place: New Delhi

Date: 30.05.2017

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of Nu Tek IndiaLimited on the standalone financial statements for the year ended March 31 2017 wereport that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (b) According to the information andexplanations given to us all the assets have not been physically verified by themanagement during the year but there is a regular programme of verification. In accordancewith this programme certain fixed assets were verified by the management during the year2013-14 and no material discrepancies were noticed on such verification

(c) According to the information and explanations given to us the Company does nothave any immovable property.

(ii) The Company does not have any physical inventory at the reporting period thusthe paragraph 3(ii) of the Order is not applicable to the Company.

(iii) The Company has not granted any loans secured or unsecured to any companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 (‘the Act'). (iv) In our opinion andaccording to the information and explanations given to us the Company has not given anyloans investments guarantees and security to the parties covered under section 185 &186 of the Companies Act 2013.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public. Thus the provision of clause (v) ofparagraph 3 of the Order are not applicable to the company.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company. (vii) (a)According to the information and explanations given to us and the books of accountexamined by us in respect of statutory dues the Company is not regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax value added tax cess and any other statutory dueswith the appropriate authorities. According to the information and explanations given tous undisputed amounts payable in respect of provident fund employees' state insuranceincome-tax sales-tax service tax value added tax cess and other statutory dues thatwere in arrears as at March 31 2016 for a period of more than six months from the datethey became payable are given below.

Name of the Statute Nature of the Dues Amount (Rs.) Period to which amount relates
829945/- More Than One Year
Sales Tax VAT/CST
223041/- F/Y 2016-17
Sales Tax WCT 670618/- F/Y 2013-14
703086/- F/Y 2014-15

 

1864544/- F/Y 2015-16
EPF Act Provident Fund*
4228848/- F/Y 2016-17
1579168/- F/Y 2013-14
ESI Act Employee State Insurance*
3425136/- F/Y 2014-15
2821822/- F/Y 2015-16
1267574/- F/Y 2016-17
Income Tax Professional Tax 33373/- F/Y 2011-12
99215/- F/Y 2012-13
17149/- F/Y 2013-14
19865/- F/Y 2014-15
14300/- F/Y 2015-16
7260/- F/Y 2016-17
Interest & Levy of TDS 670/- F/Y 2007-08
711070/- F/Y 2008-09
105870/- F/Y 2009-10
552980/- F/Y 2010-11
50/- F/Y 2014-15
EPF & ESI Act Welfare Fund* 4395/- F/Y 2011-12
43682/- F/Y 2012-13
133410/- F/Y 2013-14
11820/- F/Y 2014-15
3360/- F/Y 2015-16
1620/- F/Y 2016-17
Service Tax Service Tax 12945112/- F/Y 2015-16
16288207/- F/Y 2016-17

*Provident Fund Employee State Insurance and Welfare Fund includes both Employer's andEmployee's Contribution.

According to the information and explanations given to us there are no dues of salestax or EPF or ESI or service tax or value added taxwhich have not been depositedwith theappropriate authority on account of any dispute. However the following dues of income taxhave not been deposited by the Company on account of disputes:

Name of the Statute Nature of Dues Amount (Rs.) Period Forum Where Dispute is Pending
Income Tax Act 1961 Income Tax & Interest 5248933/- A.Y. 2014-15 CIT (Appeal)
Income Tax Act 1961 Income Tax & Interest 1241595/- A.Y. 2011-12 ITAT (Appeal)

(viii) According to the records of the Company examined by us and the information andthe explanation given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution or bank or Government or dues to debenture holdersas at balance sheet date. Accordingly paragraph 3(viii) of the Order is not applicable.(ix) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit. (xi) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act. (xii) In our opinion andaccording to the information and explanations given to us the Company is not a NidhiCompany. Accordingly paragraph 3(xii) of the Order is not applicable. (xiii) According tothe information and explanations given to us and based on our examination of the recordsof the Company 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 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 or fully or partly convertible debentures duringthe year. (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 its directors or persons connected with him.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable tothe Company.

For Suman Jeet Agarwal & Co.

Chartered Accountants

Firm's Registration Number: 011945N

Ankush Kumar

Partner

Membership Number: 531341

Place: New Delhi

Date: 30.05.2017

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 Nu TekIndia Limited ("the Company") as of March 31 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 Reporting issued by theInstitute of Chartered Accountants of India (‘ICAI'). 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 onAuditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the

Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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.

Opinion

In our opinion the Company has in all material respects an internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting needs to strengthen for operating effectively as at March 31 2017based on 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 Suman Jeet Agarwal & Co.

Chartered Accountants

Firm's Registration Number: 011945N

Ankush Kumar

Partner

Membership Number: 531341

Place: New Delhi

Date: 30.05.2017