| We have audited the accompanying financial statements of NETLINK
SOLUTIONS (INDIA) LIMITED ( "the company") which comprises the
Balance Sheet as at 31st March 2014, and the statement of Profit
& Loss Account and Cash Flow Statement for the year then ended,
and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956("the Act"). This
responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on the date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on the date.
Report on Other Legal & Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2003 (`the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the company.
The Annexure referred to in paragraph 1 of the our report of even date
to the Members of NETLINK SOLUTIONS (INDIA) LIMITED, on the accounts of
the company for the year ended 31st March, 2014
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantita- tive details and situation of its fixed assets;
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals, no material discrepancies were
notice on such verifications
(c) In our opinion and according to the information and explanations
given to us, no fixed assets has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) The physical verification of the inventory has been conducted
at reasonable intervals by the management.
(b) The procedures of physical verification of inventory followed by
the management are rea- sonable & adequate in relation to the size of
the company & the nature of its business.
(c) The company is maintaining proper records of inventory & no
material discrepancies were noticed on physical verification.
3. According to the information and explanations given to us and on
the basis of our examination of books of accounts, the company has not
granted or taken any loans, secured or unsecured to / from the
companies, firms or other parties listed in the register maintained
under section 301 the Companies Act, 1956. Consequently the provisions
of the clause iii(b), iii(c), iii(d), iii(f) & iii(g) of the order are
not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there are gener- ally adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of Inventories and fixed assets and payment
for ex- penses and for sale of goods and services. During the course of
our audit, no major instance of continuing failure to correct any
weakness in the internal control has been noticed.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
(a) To the best of our knowledge and belief and according to the
information and explanation given to us, transactions that needed to be
entered into register have been so entered.
(b) In our opinion and according to the information and explanation
given to us, in respect of transactions made in pursuance of the
contracts or arrangements entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956 and exceeding the
value of Rs. 5 lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
6. The Company has not accepted any deposits from the public covered
Under Section 58 (A) and 58(AA) of the Companies Act, 1956.
7. In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. As per information and explanations given by the Management,
Central Government has not prescribed maintenance of cost records under
Section 209(1) (d) of the companies Act, 1956 for any of the activities
of the company.
9. Statutory and other dues:
(a) According to the records, information & explanation given to us,
undisputed statutory dues including provident fund, investor education
protection fund, employees' state insurance, income-tax, sales tax,
wealth-tax, service-tax, custom duty, excise duty, cess and other
material statutory dues, wherever applicable, have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amount payable
in respect of aforesaid dues were outstanding as at the end of the year
for a period of more than six months from the date becoming payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service
Tax, Excise Duty and Cess outstanding on account of dispute.
10. The Company is not having any accumulated losses at the end of the
financial year & not incurred cash losses in the said financial year &
incurred cash losses in immediately preceding the said financial year;
11. The company has not taken any loan from financial institution or
Bank, hence clause of default in repayment of dues to the said parties
is not applicable.
12. In our opinion and according to the information & explanation
given to us, no loans and ad- vances have been granted by the company
on the basis of security by way of pledge of shares, debentures and
other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provisions of this clause of the
Companies (Auditor's Report) Order, 2003 ( as amended) are not
applicable to the Company.
14. In our opinion, the company has maintained proper records of the
transactions and contracts relating to dealing in shares and other
investments and timely entries have been made there in. Further the
investments specified are held in their own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The Company has not raised any term loans during the year.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet of the Company, the company
has not used the funds borrowed on short term basis for long-term
investment and vice versa.
18. During the year Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the years, nor
did it have any outstanding debentures at the beginning of the year.
20. The Company has not raised any money through a public issue during
the year.
21. Best on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the company
has been noticed or reported during the year, nor we have been informed
of such case by the Management.
FOR K. U. KOTHARI & CO.
CHARTERED ACCOUNTANTS
F.R.No. 105310W
PRAKASH CHECHANI
(PARTNER)
M.No. 104203
PLACE : MUMBAI
DATED : 30/05/2014
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