you are here:

Den Networks Ltd.

BSE: 533137 | NSE: DEN |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE947J01015 | SECTOR: Media & Entertainment

BSE Live

Sep 24, 11:53
48.00 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
109,301
10-Day
121,211
30-Day
140,754
20,489
  • Prev. Close

    48.00

  • Open Price

    48.80

  • Bid Price (Qty.)

    48.00 (1218)

  • Offer Price (Qty.)

    48.10 (1)

NSE Live

Sep 24, 11:53
48.00 -0.05 (-0.10%)
Volume
AVERAGE VOLUME
5-Day
950,425
10-Day
1,197,560
30-Day
1,062,999
357,420
  • Prev. Close

    48.05

  • Open Price

    48.25

  • Bid Price (Qty.)

    48.05 (10)

  • Offer Price (Qty.)

    48.10 (316)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

We have audited the accompanying financial statements of DEN Networks Limited, (''the Company'') which comprise the Balance Sheet as at 31 March, 2014, 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 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 notified under the Companies Act, 1956 (the Act) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. 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 misstatements, whether due to fraud or error. AUDITORS'' 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 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 the internal controls 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, but not for the purpose of expressing an opinion on the effectiveness ofthe Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 aforesaid 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 31 March, 2014; (b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. EMPHASIS OF MATTER a) We draw attention to note 28 of the financial statements wherein it is stated that the remuneration aggregating to Rs. 13.42 million paid to the Chairman and Managing Director of the Company which is in excess of the provisions of Sections 198 and 309 read with Schedule XIII of the Companies Act, 1956 and for which the approval from the Central Government is awaited. b) We draw attention to note 43 of the financial statements wherein it is stated that the Digital Addressable System (DAS) subscription fee has not yet been finalised and the revenue on account of the same has been recognised based on certain estimates which in the management''s view are reasonable. 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, 2003 (the Order) issued by the Central Government in terms of Section 227(4A) 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 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 Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notified under the Act (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs). (e) On the basis of the written representations received from the directors as on 31 March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2014 from being appointed as a director in terms of Section 274(1)(g) of the Act. 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. Having regard to the nature of the Company''s business/ activities/result, clauses ii, x, xiii, xiv and xix of Companies (Auditor''s Report) Order, 2003 are not applicable. ii. 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 Company has a program of verification of fixed assets to cover all items in a phased manner over a period of three years other than set top boxes which are in possession of the customers/ third parties and distribution equipment comprising overhead and underground cables. Management is of the view that it is not possible to verify these assets due to their nature and location. Pursuant to the program, certain fixed assets were physically verified by the Management during the year and no material discrepancies were noticed on such verification. In our opinion, other than for physical verification of set top boxes and distribution equipment referred to above, the frequency of verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets. c. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company. iii. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us: a. The Company has granted a loan of Rs. (million) 61.01 to one party during the year. At the year- end, the outstanding balance of such loan was Rs. (million) 61.01 and the maximum amount involved during the year was Rs. (million) 61.01. b. The rate of interest and other terms and conditions of such loan are, in our opinion, prima facie not prejudicial to the interest of the Company. c. The receipts of principal amounts and interest have been regular/as per stipulations. d. There is no overdue amount in excess of Rs. (million) 0.1 remaining outstanding as at the year-end. iv. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the capital items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, 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 and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system. The Company''s operations do not give rise to any purchase of inventory during the current year. v. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us: a. The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register maintained under the said Section have been so entered. b. Where each of such transactions is in excess of Rs. (million) 0.5 in respect of any party other than certain purchases which are of a special nature for which comparable quotations are not available being of a specialised nature, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. vi. According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year, within the meaning of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975. vii. In our opinion, the internal audit function carried out during the year by firm of Chartered Accountants appointed by the Management has been commensurate with the size of the Company and the nature of its business. viii. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. ix. According to the information and explanations given to us in respect of statutory dues: a. The Company has generally been regular in depositing its undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Entertainment Tax, Cess and other material statutory dues applicable to it with the appropriate authorities during the year and that there are no undisputed amounts payable in respect of these dues which have remained outstanding as at 31 March, 2014 for a period of more than six months from the date they became payable except for the dues related to amusement tax, the details of which are given below: Name of Statute Nature of Dues Amount Involved (Rs. in million) West Bengal Amusement tax 12.24 Entertainment Cum Amusement Tax Act, 1982 Name of Statute Period to which the Due Date Amount Relates West Bengal April 2013 to Within 30 days from Entertainment Cum September 2013 the expiry of each Amusement Tax month Act, 1982 According to information and explanations given to us, the Company''s operations did not give rise to any Excise Duty and Investor Education and Protection Fund. b. Details of dues of Value Added Tax, Entertainment Tax and Entry Tax which have not been deposited as on 31 March, 2014 on account of various disputes are given below: Name of Statute Nature of Dues Forum where Dispute is Pending UP Value Added Tax Value added tax Commercial Tax Act, 2008 Tribunal, Lucknow UP Value Added Tax Value added tax Deputy Commissioner, Act, 2008 Lucknow Delhi Entertainment Entertainment tax Delhi High Court Tax Act, 1996 MPLEAAT Act, 2011 Entertainment tax Appellant Authority, Gwalior The Rajasthan Tax Entry tax High Court/ Deputy on Entry of Goods Commissioner Appeals into Local Areas Act, 1999 Name of Statute Period to which the Amount Amount Relates Involved (Rs. in million) UP Value Added Tax June 2013 5.84 Act, 2008 UP Value Added Tax September 2013 to 14.36 Act, 2008 October 2013 Delhi Entertainment April 2013 to May 2013 38.50 Tax Act, 1996 MPLEAAT Act, 2011 April 2011 to March 3.28 2012 The Rajasthan Tax April 2012 to May 2013 22.01 on Entry of Goods into Local Areas Act, 1999 We are informed that there are no dues in respect of Income Tax, Customs Duty, Service Tax, Wealth Tax and Cess which have not been deposited on account of any dispute. x. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks and financial institutions. The Company has not issued any debentures. xi. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by the way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable to the Company. xii. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantee given by the Company for loan taken by its subsidiary company from bank is not prima facie prejudicial to the interests of the Company. xiii. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained. xiv. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that funds raised on short term basis have, prima facie, not been used during the year for long term investment. xv. According to the information and explanations given to us, the 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. xvi. The Management has disclosed the end use of money raised by public issues in the notes to the financial statements and we have verified the same. xvii. 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 DELOITTE HASKINS & SELLS Chartered Accountants (Firm''s registration no. 015125N) JITENDRA AGARWAL New Delhi Partner 30th May, 2014 (Membership No. 87104)