We have audited the accompanying financial statements of QUANTUM
DIGITAL VISION (INDIA) LIMITED ("the Company"), which comprises of the
Balance Sheet as at 31st March 2014, the Statement of Profit and Loss,
Cash Flow Statement for the year then ended and the summary of
significant accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
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 principles generally accepted in India including
Accounting Standards referred to section 211(3C) of the Companies Act,
1956 ("the Act"). 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 misstatement, whether due
to fraud or error.
Auditor's 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 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 control 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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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.
Basis for Qualified Opinion
a) Balances of Sundry Debtors, Sundry Creditors, Loans and Advances and
various other debit/credit balances are subject to confirmations and
adjustments necessary upon reconciliation (refer Note No 3 of Notes to
Accounts). The effect of the adjustments arising from reconciliation
and settlement of the old outstanding dues and possible loss that may
arise on account of non-recovery or partial recovery of such dues is
not ascertained. We are unable to express an opinion about the impact
thereof on the accounts and the loss for the year.
b) Non provision of interest on Secured Loan and Suppliers Credit
against Imported Machineries, since as the interest is not ascertained,
(refer Note No 4 of the Notes to Accounts). We are unable to express an
opinion about the impact thereof on the accounts and the loss for the
year.
c) Provision for liability towards leave salary and bonus and gratuity
to employees is accounted for on cash basis, which is not in conformity
with- Accounting Standard 15 on Accounting of Retirement benefits to
Employees.
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 of Qualified Opinion paragraph, the 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 March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 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 purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Referred to in paragraph 1 under the heading "Report on Other Legal and
regulatory Requirements" of our Report of even date
I. In respect of fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off a major part of
the fixed assets.
II. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at year end. In our opinion, the
frequency of verifications is reasonable.
(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 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. As
explained to us, there was no material discrepancy noticed on physical
verification of inventories as compared to the book records.
III. The company has neither taken nor granted any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, clauses (iii)(b), (iii) (c) and (iii)(d), (iii)(e),
(iii)(f) and (iii)(g) of the Order are not applicable.
IV. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in Internal
Controls System.
V. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupee five lakh in
respect of each party during the year have been made at prices which
are reasonable having regard to 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 to which the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 apply.
VII. In our opinion, the company does not have an internal audit system
commensurate with the size and nature of its business.
VIII. The maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956 has not been prescribed by the Central Government.
IX. (a) (i) The company is Generally regular in depositing with
appropriate authorities undisputed statutory dues including investor
education protection fund, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues as applicable
to it,
(ii) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
sales tax, customs duty, excise duty and cess were in arrears, as at
31st March, 2014 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, income tax,customs duty, wealth tax, excise
duty and Cess which have not been deposited on account of any dispute.
X. The accumulated losses of the company are more than fifty percent of
its net worth. The company has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank.
XII. Based on our examination of the records and the information and
explanation given to us, the company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
XIII. According to the information and explanation given to us, the
company is not a chit fund or a nidhi /mutual benefit fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the company.
XIV. (According to the information and explanation given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
order are not applicable to the company.
XV. According to the information and explanation given to us, the
company has not given any guarantee in favour of financial institutions
or banks for loans taken by others.
XVI. According to the information and explanation given to us, the
company has not raised any new term loans during the year.
XVII. According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company. We are of
the opinion that no funds raised on short-term basis have been used for
long-term investment by the company.
XVIII. According to the information and explanations given to us,
during the year, 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.
XIX. The Company did not have any outstanding debentures during the
year. Accordingly, no securities have been created.
XX. The Company has not raised any money by way of public issue during
the year.
XXI. Based on our examination of the books and records of the company
carried out in accordance with the generally accepted auditing practice
in India and according to the information and explanations given to us,
no fraud on or by the company has been noticed or reported during the
year.
For SHAH & TAPARIA
Chartered Accountants
FRN: 109463W
sd
Ramesh Pipalawa
Place: Mumbai Partner
Date: 30/05/2014 Membership No. : 103480 |