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नेट4 इंडिया

बीएसई: 532912  |  NSE: NET4  |  ISIN: INE553E01012  |  Computers - Software Medium & Small

खोजें नेट4 इंडिया कनेक्शन Mar 14
लेखा परीक्षकों की रिपोर्ट वर्षांत : Mar '15
We have audited the accompanying standalone financial statements of
 NET4 INDIA LIMITED, (the Company), which comprise the Balance Sheet
 as at March 31,2015, the Statement of Profit and Loss 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 STANDALONE FINANCIAL STATEMENTS
 
 The Company''s Board of Directors isresponsible for the matters stated
 in Section 134(5) of the Companies Act, 2013 (''the act'') with respect
 to the preparation of these standalone 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 principles
 generally accepted in India, including the Accounting Standards
 specified under Section 133 of the Act, read with rule 7 of Companies
 (Accounts) Rules, 2014. This responsibility also includes maintenance
 of adequate accounting records in accordance with the provisions of the
 Act for safeguarding of the assets of the Company and for preventing
 and detecting frauds and other irregularities'' selection and
 application of appropriate accounting policies; makingudgements and
 estimates that are reasonable and prudent; and design, implementation
 and maintenance of adequate internal financial controls, that are
 operating effectively for ensuring the accuracy and completeness of the
 accounting records, 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 standalone
 financial statements based on our audit.
 
 We have taken into account the provisions of the Act, the accounting
 and auditing standards and matters which are required to be included in
 the audit report under the provisions of the Act and the Rules made
 thereunder.
 
 We conducted our audit in accordance with the Standards on Auditing
 specified under Section 143(10) of the Act. 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''sudgment, 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 financial control relevant to the Company''s
 preparation of the financial statements that give a true and fair view,
 in order to design audit procedures that are appropriate in the
 circumstances, but not for the purpose of expressing an opinion on
 whether the company has in place an adequate internal financial control
 system over financial reporting and the operating effectiveness of such
 controls. An audit also includes evaluating the appropriateness of
 accounting policies used and the reasonableness of the accounting
 estimates made by Company''s Directors, as well as evaluating the overall
 presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient
 andappropriate to provide a basis for our audit opinion on the
 standalone financial statements.
 
 BASIS FOR QUALIFIED OPINION
 
 j. ) During the financial year 2013-14 the Company had defaulted in
 repayment of principle and interest thereon of Term Loan from State Bank
 of India. Working Capital Loans taken from . State Bank of India. State
 Bank of Travancore and Loan against FDR from Canara Bank. All the loans
 had been classified as Non-Performing Assets(NPA) by these banks. The
 status of these loans & credit facilities have remained the same during
 the current financial year.
 
 k. ) Income Tax demand of Rs.132.78Lacs (Approx.) from AY 2004-05 to AY
 2011-12 not deposited and appeals have been filed or in the process of
 filing.
 
 l. ) Service Tax Amounting to Rs.8.33Crores (net) (Approx.) upto 31st
 March 2015 not deposited.
 
 m. ) Provident Fund and ESI amounting to Rs.59.13Lacs (Approx.) upto
 31st March, 2015 not deposited.
 
 n.  ) TDS amounting to Rs.68.59 Lacs(Approx.) as on 31st March 2015 not
 deposited.
 
 o.  ) VAT liability for certain branches still to be deposited.
 
 p.  ) Fixed Deposit amounting to Rs. 13.77 crore (approx.) were due for
 repayment as on 31st March, 2015.
 
 The company has written off bad debts amounting to Rs. 13.78Crores
 (Approx.) The company has no security for these debts. On the basis
 that no security has been obtained and no cash has been received on
 these debts, the company has written off bad debts thereby reducing the
 profit for the year (if any) and net assets at 31st March by that
 amount.
 
 QUALIFIED OPINION
 
 In our opinion and to the best of our information and according to the
 explanations given to us, except for the effects of the matter
 described in the Basis for Qualified Opinion paragraph above, the
 aforesaid standalone 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
 of the state of affairs of the Company as at 31st March 2015, its
 profit/loss and its cash flows for the year ended on that date.
 
 OTHER MATTER
 
 As per statutory records produced before us and explanations given to
 us, our comment as follows:
 
 (x) There were no Independent Directors in the company leading to
 non-compliance of the provisions of the listing Agreement as well as
 the Companies Act 2013.
 
 (xi) There was no Woman Director in the Board of Directors of the
 company, leading to non- compliance of the applicable provision.
 
 (xii) There was no Audit Committee for the year.
 
 (xiii) There was no Nomination and Remuneration Committee for the year.
 
 (xiv) There was no Risk Management Committee for the year.
 
 (xv) There was no Shareholder''s & Investor Grievance Committee for the
 year.
 
 (xvi) There was no Internal Auditor for the year.
 
 (xvii) Non-Compliance of provisions relating to public deposit i.e.as
 per the requirements of Company (Acceptance of Deposit) Rules, 1975 a
 company has to deposit or invest at least 15% of its deposits maturing
 during the financial year latest by 30th April 2014. This requirement
 has not been complied by the company.
 
 (xviii) The company has not provided service tax liability under
 reverse charge mechanism for the year.
 
 (xix) The company has litigations filed against it under various counts
 like under section 138 of Negotiable Instrument Act, Arbitration,
 petition filed by ex-employee for recovery of dues, winding up
 petition, etc. The number of cases is large although the exact number
 of cases was not made available to us. As per available information &
 explanation provided by the management, the quantum of amount on these
 cases cannot be ascertained.
 
 (xx) The company had received winding up order from the Court on the
 basis of a petition filed by 2 companies due to non-repayment of loans.
 However, the company has obtained stay order from the court on the
 basis of repayment schedule submitted before it. The Court has stayed
 this order subject to payment of Rs. 25 Lacs in 4 weeks out of which
 Rs. 10 Lacs was paid immediately and for the balance, the company has
 time till 17thune, 2015.
 
 (xxi) The company has written off bad debts amounting to Rs. 13.78
 Crore (Approx). Our Opinion is not qualified in respect of this matter.
 
 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
 
 1. As required by the Companies (Auditor''s Report) Order, 2015
 (theOrder) issued by the Central Government of India in terms of
 sub-section (11) of section 143 of the Act, we give in the Annexure a
 statement on the matters specified in paragraphs 3 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 best ofour knowledge and belief were necessary for the
 purpose of our audit;
 
 b) Except for the effects of the matter described in the Basis for
 Qualified Opinion paragraph above, in our opinion, proper books of
 account as required by law have been keptby the Company so far as
 appears from our examination of those books and proper returns adequate
 for the purposes of our audit have been received from the branches not
 visited by us.
 
 c) The Balance Sheet, and Statement of Profit and Loss, and Cash Flow
 Statement dealt with by this Report are in agreement with the books of
 account.
 
 d) Except for the effects of the matter described in the Basis for
 qualified Opinion paragraph above, in our opinion, the aforesaid
 financial statements comply with the applicable Accounting Standards
 specified under Section 133 of the Act, read with Rule 7 of the
 Companies (Account) Rules 2014.
 
 e) On the basis of written representations received from the directors
 as on March 31, 2015, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2015, from being
 appointed as a director in terms of Section 164(2) of the Act.
 
 f) The qualification relating to the maintenance of accounts and other
 matters connected therewith are as stated in the Basis for Qualified
 Opinion paragraph above.
 
 9) With respect to the other matters to be included in the Auditor''s
 Report in accordance with Rule 11 of the companies (Audit and Auditors)
 Rules, 2014 in our opinion and to the best of our information and
 according to the explanation given to us:
 
 (i) The Company does have pending litigations which may have impact on
 its financial position. Refer Note no.40 of the Notes to Accounts of
 Balance Sheet.
 
 (ii) The Company did not have any long term contracts including
 derivative contracts: as such the question of commenting on any
 material foreseeable losses thereon does not arise.
 
 (iii) There has not been an occasion in case of the company during the
 year under report to transfer any sums to the Investor Education and
 Protection Fund. The question of delay in transferring such sums does
 not arise.
 
 The Annexure referred to in paragraph 1 of the Our Report of even date
 to the members of NET4 INDIA LIMITED on the accounts of the company for
 the year ended 31st March 2015.
 
 On the basis of such checks as we considered appropriate and according
 to the information and explanation given to us during the course of our
 audit, we report that:
 
 4. (a) The company has maintained proper records showing full
 particulars quantitative details. However, situation of its fixed assets
 have not been mentioned.
 
 (b) As explained to us, fixed assets have been physically verified by
 the management at reasonable intervals; no material discrepancies were
 noticed on such verification.
 
 (a) The physical verification of inventories was carried out by the
 management from time to time.
 
 (b) The procedures of physical verification of inventory followed by the
 management are reasonable and adequate in relation to the size of the
 company and the nature of its business.
 
 (c) The company is maintaining proper records of inventory and no
 material discrepancies were noticed on physical verification and the
 same have been properly dealt with in the books of account.
 
 6. (a) According to the information and explanations given to us and on
 the basis of our exmination of the books of account, the Company has not
 granted any loans, secured or unsecured, to companies, firms or other
 parties listed in the register maintained under Section 189 of the
 Companies Act. Consequently, the provisions of clauses iii (a) and iii
 (b) of the order are not applicable to the Company.
 
 In case of loans taken from other parties in earlier years, repayment
 of principle as well as interest has been irregular.
 
 7 In our opinion and according to the information and explanations
 given to us, there is generally an adequate internal control procedure
 commensurate with the size of the company and the nature of its
 business, for the purchase of inventories & fixed assets and payment
 for expenses & for sale of goods& services except mentioned in Other
 Matter paragraph of Independent Auditor''s Report. During the course of
 our audit, no major instance of continuing failure to correct
 anyweaknesses in the internal controls has been noticed.
 
 8. The Company has not accepted any deposits from the public covered
 under section 73to 76 of the Companies Act, 2013 during the year.
 However, public deposits were accepted in earlier years. Earlier,
 deposits were governed by the provisions of Sections 58A of the
 Companies Act, 1956 and the rules framed thereunder relating to the
 deposits accepted, same were, wherever applicable, have not been
 complied with. The company has defaulted in repayment of principal and
 interest thereon w.e.f. August 2013.
 
 During the financial year 2014-15, the company has paid amount of
 principle & interest of Rs. 25.34 Lac (approx.). Total amount payable
 (due plus overdue amount) as on 31.03.2015 was Rs. 13.77 Crore
 (approx.). During the year, the company had received 423 approx,
 complaints, out of which 84 approx, complaints were resolved.
 
 As per explanation and records produced, the reason for default has
 been due to heavy losses resulting to cash crunch in the company
 leading to bouncing of cheques issued towards repayment of deposits
 (principal and interest). This has also lead to closure of the bank
 account from where cheques had been issued.
 
 It has also come to our notice that due to default in repayment of
 deposits by the company some of the investors have issued notices to
 the company in order to instigate proceedings against the company
 before the Court or Company Law Board or National Company Law Tribunal
 under relevant sections of The Companies Act and Negotiable Instruments
 Act (against cheque bouncing) for repayment or winding up.
 
 Further, as per the requirements of Company (Acceptance of Deposit)
 Rules, 1975 a company has to deposit or invest at least 15% of its
 deposits maturing during the financial year latest by 30th April 2014
 i.e. in the beginning of the year in any of the specified assets which
 could be utilised for repayment of deposits maturing during the year
 but at no time the amount shall fall below 10% of the amount maturing
 
 before 31st of that year. However, the company has not complied with
 this provision of the clause.
 
 As per further information & explanation provided to us, the company
 has filed a repayment scheme with the Company Law Board for
 rescheduling payments to FD Holders. In the interim, the company has
 paid interest and principal to a number of FD holders who demonstrated
 genuine hardship cases. The company has also forwarded their revival
 plan, which include paying FD holders as per the scheme, settling all
 statutory dues and also setting all overdue debts.
 
 9 As per information & explanation given by the management, maintenance
 of cost records has not been prescribed by the Central Government under
 clause (d) of sub-section (1) of section 148 of the Act and hence this
 clause is not applicable to the company.
 
 10. (a) According to the records of the company, undisputed statutory
 dues including Provident Fund, Investor Education and Protection Fund,
 Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
 Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
 other statutory dues have not been regularly deposited with the
 appropriate authorities. According to the information and explanations
 given to us, there were outstanding statutory dues as on 31st of March,
 2015 for a period of more than six months from the date they became
 payable, which are as follows:
 
 Particulars                        Amount (Rs. In lacs)
 
 Tax Deducted at source                49.20
 
 Service Tax                          591 22
 
 Professional Tax :                   o.05
 
 
 PF and ESI                           48.48
 
 (b) According to the information and explanations given to us, there
 were amount payable in respect of income tax, service tax, sales tax,
 which have not been deposited on account ofdisputes.
 
 INCOME TAX
 
 Income Tax for the following years has not been deposited with the
 appropriate authorities on account of dispute. The company has filed
 the appeal before the Commissioner of Income Tax (Appeals)/ITAT/High
 court/other forums/in the process of filing the appeal. The details are
 as under:
 
 Assessment Year                     Amount (Rs. In  lacs)
 
 2004-05                                    2.59*
 
 2005-06                                    6.20*
 
 2006-07                                    1.50*
 
 2008-09                                   30.28*
 
 2009-10                                   285.53*
 
 2010-11                                   723.67*
 
 2011-12                                    271.43
 
 * Source - As per information available at Income Tax website and
 appeals filed by the company at various forums.
 
 SERVICE TAX
 
 Matter relating to                        Amount Involved
 
 Taxability on SSL Certificate -           91.84   (Approx.)
 whether VAT applicable or Service         (excluding  Interest   &
 tax applicable                            Penalty)
 
 
 Taxability of Domain prior touly          1141.64(Approx.)
 2012. (period from 2008-09 to 2011-       (excluding  Interest   &
 12)                                        penalty)
 
 Matter relating to                        (Rs. In Forum Lacs)
 
 Taxability on SSL Certificate -            The company has filed an
 whether VAT applicable or Service          appeal before the Mumbai
 tax applicable                             High Court and
                                            Commissioner Appeals.
 
 Taxability of Domain prior touly           Service Tax Department,
 2012. (period from 2008-09 to 2011-        Indraprastha, New Delhi
 12)
 
 SALES TAX
 
 Matter description                     Amount Involved (Rs. In Lacs)
 
 Dispute regarding entitlement of       15.05   (Approx.)
 Input Vat Credit (2010-11)            (excluding Interest &
                                        Penalty)
 
 Liability created by Department        4.75 (Approx.) (excluding
 Interest & penalty)Mumbai
 
 Matter description                         Forum
 
 Dispute regarding entitlement of          MVAT   Department,
 Input Vat Credit (2010-11)                Mumbai                 ''
 
 Liability created by Department           MVAT  Department,
 Interest & penalty)Mumbai
 
 (c) There was no amount required to be transferred to investor
 education and protection fund in accordance with the relevant
 provisions of the Companies Act, 1956 (1 of 1956) and rules made
 thereunder.
 
 11 The accumulated losses of the companyat the end of the financial
 year are more than the net worth andalso it has incurred cash loss
 during the financial year covered by our audit and in the immediately
 preceding financial year.
 
 12 Based on our audit procedures and on the information and
 explanations given by the management, we are of the opinion that, the
 Company has been in default in repayment of dues to a financial
 institution, bank or other lenders.
 
 13.  According to the information and explanations given to us, the
 Company has not given guarantee for loans taken by others from bank or
 financial institutions. Terms loans, other credit limits and loan from
 financial institutions were unpaid and the dues have been classified as
 Non-Performing Assets (NPA) by the banks.
 
 14.  During the year, no fresh term loans taken by the company.
 However, term loans taken in earlier years, were in unpaid and
 classified as Non-Performing Assets (NPA) by the bank.
 
 15. Based 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 have we been informed
 of such case by the management.
 
                                                  For Sandy Associates
                                                  Chartered Accountants
                                                  FRN: 007337N
 
                                                        Sd /-
 
                                                (FCA SANDEEP GUPTA)
 Date: 02.06.2015                                Proprietor
                                                 Membership No.: 086069
 
स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • MARKET CUES : FIIs ने कैश में `566.52 Cr की खरीदारी की
  • MARKET CUES : DIIs ने कैश में `183.41 Cr की खरीदारी की
  • MARKET CUES : FIIs ने F&O में `800 Cr की बिकवाली की
  • MARKET CUES : इंडेक्स फ्यूचर्स में `818 Cr की बिकवाली की
  • MARKET CUES : इंडेक्स ऑप्शंस में `140.36 Cr की खरीदारी की
  • MARKET CUES : स्टॉक फ्यूचर्स में `42.76 Cr की बिकवाली की
  • MARKET CUES : स्टॉक ऑप्शंस में `79.20 Cr की बिकवाली की
  • MS ON TCS : Equal-weight रेटिंग, लक्ष्य `1,980/Sh
  • MS ON TITAN : Equal-weight रेटिंग, लक्ष्य `1240/Sh
  • MS ON ICICI BANK : Overweight रेटिंग, लक्ष्य `665/Sh

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