| We have audited the accompanying financial statements of NETWORK
LIMITED("the Company"), which comprise the Balance Sheet as at 31March,
2015,the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of the significant 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these 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 the 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 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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 and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Actin 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 31March, 2015, 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, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11)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 of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 as on31March, 2015and taken on record by the Board of
Directors, none of the directors is disqualified as on 31March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
For and on behalf of S. Kapoor & Associates Chartered Accountants
(Registration No. 003528M)
ANNEXURE 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,
including quantitative details and situation of fixed assets.
(b) The management had physically verified the fixed assets during the
year. According to the information and explanations given to us no
material discrepancies were noticed on such verification.
ii. The Company does not have any inventory other than Securities and
commodities. Accordingly, the provisions of Clause 3 (ii) of the Order
are not applicable to the Company.
iii. he Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets. The activities of the company does not
involve purchase of inventories or sale of goods, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business with regard to sale of securities. During
the course of our audit, we have not observed any major weakness in
such internal control system.
v. According to the information and explanations given to us, the
Company has not accepted any deposit during the year. The Company does
not have any unclaimed depoists and accordingly, the provisions of
Sections 73to76or any other relevant provisions of the Companies Act,
2013 are not applicable to the Company.
vi. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
sub-section (1) of Section 148 of the Companies Act, 2013 for the
Company.
vii. According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been generally been regular in depositing
undisputed statutory dues, including Income-tax, Service Tax, Cess and
other material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Income-tax, Service Tax,Cess and other material statutory duesin
arrears as at March 31, 2015 for a period 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 to any liability for Employees State Insurance, Sales
Tax, Wealth Tax, Custom Duty, Excise Duty and Value Added Tax.
(c) We are informed that there are no dues in respect of Income Tax,
Service Tax and Cess which have not been deposited on account of any
dispute
(d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
thereunder.
viii. The accumulated losses at the end of the financial year amounted
to Rs. 704.68 lacs which is less than fifty percent of its Net Worth
and the Company has incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
ix. According to the information and explanations given to us and the
records examined by us, the Company has not taken any loans from
financial institutions and banks nor has it issued any debentures.
Accordingly, the provisions of clause 3 (ix) of the Order are not
applicable to the Company.
x. According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
and financial institutions.
xi. Based on the examination of the books of account and related
records and according to the information and explanations provided to
us, no term loans were obtained by the Company.
xii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For and on behalf of
S. Kapoor & Associates
Chartered Accountants
(Registration No. 003528M)
Sd/-
Sanjay Kapoor
Place: New Delhi F.C.A. (Proprietor)
Dated: 16-05-2015 Membership No.82499
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