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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 17, 16:00
48.90 -1.00 (-2.00%)
Volume
AVERAGE VOLUME
5-Day
133,121
10-Day
148,110
30-Day
162,774
98,336
  • Prev. Close

    49.90

  • Open Price

    49.80

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Sep 17, 15:59
48.85 -1.00 (-2.01%)
Volume
AVERAGE VOLUME
5-Day
1,444,696
10-Day
1,359,029
30-Day
1,184,821
691,067
  • Prev. Close

    49.85

  • Open Price

    50.15

  • Bid Price (Qty.)

    48.85 (3316)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Auditor's Report

We have audited the accompanying standalone financial statements of DEN Networks Limited (the Company), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, 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 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 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 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 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 reason able 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 proceduress elected depend on the auditors'' 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 standalone financial statements. OPINION In our opinion and to the best of our information and according to the explanations given to us, 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, and its loss and its cash flows for the year ended on that date. EMPHASIS OF MATTERS We draw attention to note 43 of the standalone 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 modified in respect of this matter. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 1. As required by the Companies (Auditors'' 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 to the extent applicable. 2. As required by Section143(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 standalone 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 on 31st March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 Auditors'' 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 has disclosed the impact of pending litigations on its financial position in its financial statements. 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. 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 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. According to the information and explanation given to us, 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. ii. In respect of its inventories: a. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals. b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. iii. According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. In respect of such loans: a. The receipts of principal amounts and interest have been regular/as per stipulations. b. There is no overdue amount in excess of Rs. 1 lakh 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. v. According to the information and explanations given to us, the Company has not accepted any deposit during the year. vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and the Cost Records and Audit (Telecommunication Industry) Rules prescribed by the Central Government under sub- section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. vii. 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, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities during the year. According to the information and explanations given to us, the Company''s operations did not give rise to any Excise Duty. b. There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable except for the dues related to amusement tax and entertainment tax, the details of which are given below: Amount Period Name of Nature of Involved to which Due Date Statute Dues (Rs in the Amount Relates million) West Bengal Entertainment Amusement 10.24 April Within Cum Amusement tax 2013 to 30 days Tax Act, 1982 March from the 2014 expiry of each month Delhi Entertainment Tax Act, Entertainment 12.49 April Within 1996 Tax 2014 to 7 days September from the 2014 expiry of each month According to the information and explanations given to us, the Company''s operations did not give rise to any Excise duty. c. Details of dues of Value Added Tax and Sales Tax which have not been deposited as on 31st March, 2015 on account of disputes are given below: Name of Nature of Forum where Period to Amount Statute Dues Dispute which the involved is Pending Amount (Rs in Relates million) UP Value Added Value added Commercial June 2013 5.84 Tax Act, 2008 tax Tax Lucknow Tribunal, UP Value Added Value added Additional April 100.39 Tax Act, 2008 tax Commissioner 2012 to Appeals March 2013 UP Value Added Value added Deputy September 14.36 Tax Act, 2008 tax Commissioner, 2013 to Lucknow October 2013 Bihar Value Value added Joint April 2012 14.94 Added Tax tax Commissioner to March Act,2005 of Commercial 2014 Tax (Appeals) Karnataka Value Value added Joint of April 21.51 Added Tax and tax and Commissioner 2008 to CST Act, 2003 Central To March Sales Commercial 2009 Tax Tax (Appeals) Kerala Value Value added Assistant April 2011 18.16 Added Tax and tax and Commissioner to March CST Act, 2003 Central Appeals, 2013 Sales Commercial Tax Taxes, Ernakulam We are informed that there are no dues in respect of Income Tax,Wealth Tax, Service Tax, Customs Duty 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 there under. viii The accumulated losses of the Company at the end of the financial year are less than fifty percent of its net worth and the Company has not incurred cash loss during the preceding year but has incurred cash losses during the current financial year. ix. 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. x. 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 others from banks and financial institutions are not prima facie prejudicial to the interests of the Company. xi. In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained. 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 DELOITTE Haskins & SELLS Chartered Accountants Firm''s registration no. 015125N) Sd/- JITENDRA AGARWAL NEW DELHI Partner 11 May, 2015 (Membership No. 87104)