Nettlinx Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1 The audited standalone financial results for the three months and year ended March 31, 2021 have been approved by the board of directors of the company at their meeting held on June 30, 2021 after review by the audit committee at thier meeting held on 30th June2021. The Company confirms that its statutory Auditors have issued audit report on the standalone financial results for the three months and year ended March 31. 2021.

2 The above standalone finacial results have been prepared from the interim standalone finacial statements, which are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 as applicable and guidelines Issued by the Securities and Exchange Board of India ("SEBI"). The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendments Rules, 2016.

3 The figures of the last quarters are the balancing figures between the audited figures of the financial years and the published results up to the third quarter of the respective financial years.

4 Property plant equipment

a.Property Plant& Equipment includes certain equipment’s located in temporary premises not having formal lease agreements.

b.During the year, company depreciated/ impaired the realizable value of old Property, Plant and Equipment for which the useful life of assets expired. Because of assets are impaired the depreciation/ impairment in the current year increased when compared to last year.

c.During the current year, the company has impaired Intangible Asset value of Rs.15,09,023.

5 Trade receivables

a.During the year the company's certain business operations and regular accounting activities are migrated to new application "Open Bravo". Subsidiary balances of Trade Receivables are under process and reconciliations are pending. Information system control audit is under process.

b.As per the Management estimation, the company is confident of recovering the present Trade Receivables. Hence no ECL (Expected Credit Loss) has created. Further the Company has written of an amount Rs. Opening Balance (34,88,818) + Current Year Loss (21,18,711)/- w.r.t Trade Receivables pending for more than 365 days

6 Loan

The Company had paid an amount of Rs 18,91,000 towards advance listing fees to Swiss International Finance group for listing of GDRs during the financial year 2016-17. However, the Company has not issued the GDRs due to technical issues. The Company has requested to return the advance amount but the Swiss International Finance group refused to refund the money. Hence the company has recognised the amount as advance written off in the current accounting period

7 Other current assets

a.Balance with Government Authorities includes

(i).An Amount of Rs. 3.09 Crores paid by the company as a voluntary payment as per section 74(5) of the CGST Act, 2017 in connection with the summons issued by the GST Authorities (Hyderabad GST Commissionerate). The Company has obtained the legal opinion in connection with the Voluntary payment made by it. The Legal council is of the opinion that, if no notice is issued within two years from the date of payment, the Company may file a refund to protect revenue interest and it has given opinion that the amount paid is in the form of pre-deposit pending finalisation of investigation and notice.

(ii).An amount of Rs.22,03,227 /- TDS deducted by customers, subject to confirmation and reconciliations with Form 26AS and customer accounts.

(iii)An Amount of Rs.33,80,750/- “Income Tax refunds" pertaining to earlier years are under process of reconciliation with Income tax assessment orders.

(iv) The Company has not filed GST Annual Return and not completed GST Audit for F.Y 2019-20. The GST Turnover and ITC is under reconciliation with accounts and GSTN records from FY 2019-20 to till date.



b. Advance given to vendors are subject to confirmations from the Parties.

c.Deposits includes deposits paid to various parties are subject to confirmations

8 Trade payables

Balance of Trade Payables are subject to confirmations from the Parties. The Balance of Trade payables includes an amount of Rs.2,00,990/- as credit card payables.

9 Other current liabilities

a.Advance received from customers are subject to confirmation from the parties.

b. Statutory Remittances includes an amount of Rs.26,24,194/- tax payable to Department of Telecommunications of which an amount of Rs.13,79,194/- is pending for more than one year.

c.The amount reflected in unearned revenue is the amount received in respect of invoice raised during the period for the performance obligation not completed till the year end.

10 Revenue from operations

a.The Purchases were made by the Company for an amount of Rs.57,42,000 on June 2020 from Malvin IT Systems Pvt Ltd and the same was reversed on November 2020 due to some technical issues and corresponding sale is also reversed on December 2020 for an amount of Rs 16,51,700. Confirmations from parties are in progress.

b. Accounting system is not integrated to location wise equipment wise customer wise data with respect to bandwidth service billing.

c.Certain web solution contracts/ agreements with the parties w.r.t to revenue and related inward services were informal unwritten.

11 Other expenses

a.Rates and Taxes includes an amount of Rs 18,91,000 towards advance listing fees to Swiss International Finance group for listing of GDRs during the financial year 2016-17. However, the Company has not issued the GDRs due to technical issues. The Company has requested to return the advance amount but the Swiss International Finance group refused to refund the money. Hence the company has recognised the amount as advance written off in the current accounting period.

b.The Company is in the process of obtaining confirmations for the balance of Trade payables, Trade receivables, Advances from the customers and other balances.

12 Previous period /figures have been regrouped/ reclassified whereever necessary.